Buy M&M, Sell Eicher Motors Today: Sanjeev Bhasin

Indian stock markets seem to be under pressure amid the ongoing global correction. The propensity to convert notional profits into real and negative impact of oil on some major economies have resulted in collateral damage. The strength in the US dollar against most other currencies is also weighing on markets.

The Nifty seems oversold in the short term, but the consolidation is likely to continue for some more time. The immediate support for the Nifty is around 8,300. The sharp fall of over 150 points in two days is likely to result in buying by long term foreign investors.

Trading calls for next four days:

1) Buy M&M: 1250-1265, stop loss 1220, target 1330

2) Buy ICICI Bank: 348-352, stop loss 339, target 370

3) Sell Eicher Motors: 14350-14400, stop loss 14710, target 13800

4) Sell Axis Bank: 486-491, stop loss 499, target 468

5) Booked profits in HPCL (return 4 per cent).

Previous trades: Coal India (buy) (Read)

Investment buy for next one year: Buy Aditya Birla Nuvo at 1700-1730. The passage of Insurance Bill will benefit the company. Its other businesses of telecom, financial services, fertilizers, carbon black and lifestyle are performing excellently. Lifestyle business re-rating could see sharp jump in market capitalization. 1 year target 4200

Disclaimer: Investors are advised to make their own assessment before acting on the information