Buy Reliance Industries, Sell Pharma Stocks Today: Sanjeev Bhasin

Indian stock markets are likely to see strong opening as exit polls predicted a BJP majority and on the back of very strong global cues. However, expect volatility and profit booking to kick in the second half of trade as event discounting takes place.

With rupee breaching 60 per dollar and with rise in oil and diesel prices, expect current account deficit and fiscal deficit to be in best ever shape in last 18 months.

Expect strong ETF (exchange traded funds) flows to continue as India outperforms in emerging and developed market basket.

For today, going long in strength like select media, oil & metals should be the strategy, while shorting in defensives like pharma could make money.

Trading calls for today:

Longs:

1. Buy Zee Entertainment: 277, stop loss: 271, target: 300

2. Buy Sesa Sterlite: 188, stop loss: 184.5, target: 202

3. Buy Reliance Industries: 1027, stop loss: 1008, target: 1100

Shorts:

1. Sell Sun Pharma: 615, stop loss: 624, target: 591

2. Sell Ranbaxy: 458, stop loss: 465, target: 432

3. Sell Lupin: 961, stop loss: 972, target: 935

Investment call:

Buy Engineers India: 235-245, 3 month target 325

(Why: Leading state-run design & engineering consultancy with principal focus on the oil & gas and petrochemical industry. Will be biggest gainer of expansion process of refineries. It has large order execution capacity. Trades at very attractive valuation.)