Buy Maruti Suzuki, Bharti Airtel Today: Sanjeev Bhasin

Indian markets likely to see gains on opening as global cues were benign and were oversold. However expect re-emergence of profit booking in 2nd half of trading day as foreign investor's selling continues against collateral risk on overseas assets.

Nifty will face resistance around 7,700 levels & will find support around 7,580. Expect more stock specific movement with Nifty now being range-bound.

We did advocate profit booking in our short strangle yesterday & now advising to book profits as under:

1) Sell 15,500 Bank Nifty call at Rs 275, sell 15,000 Bank Nifty put at Rs 200. Total premium earned Rs 475.

Now buy 15,000 put around Rs 290-Rs 300 and 5,500 call around Rs 50-Rs 53

Total payment Rs 340-Rs 350. Profit Rs 475-Rs 340 = Rs 135

For today we are carrying our 3 buy calls of yesterday which ended up around 4%:

1) Buy Maruti Suzuki India @ Rs 2,620-Rs 2,635, stop loss Rs 2,565, target Rs 2,750

2) Buy Bharti Airtel @ Rs 372-Rs 378, stop loss Rs 360, target Rs 410

3) Buy Axis Bank @ Rs 370-Rs 376, stop loss Rs 360, target Rs 410

We are also recommending 2 buy sell calls for today:

1) Buy Tata Motors @ Rs 455-Rs 465, stop loss Rs 438, target Rs 490

2) Buy ONGC @ Rs 393-Rs 397, stop loss Rs 385, target Rs 415

3) Sell Reliance Communications @ Rs 125-Rs 127, stop loss Rs 130, target Rs 118

4) Sell Reliance Power @ Rs 85-Rs 87, stop loss Rs 91, target Rs 80

Investment call:

Buy Tata motors DVR at Rs 305-Rs 310 for year-end target of Rs 350. Tata Motors reported very strong results with JLR showing stellar performance. The company also reported its best ever margins as input costs have declined. But it will not be able to sustain these margins as Chinese regulators prompt price cuts, however valuations are very attractive.