Buy SBI, UltraTech Cement Today: Sanjeev Bhasin

The Nifty is likely to open positive on Thursday as lower than expected CPI (consumer price inflation) @ 5.5% & in-line IIP(index of industrial production) @ 2.5% which came after post market hours should see Nifty cross 8,400. Globally also cues are benign after the Dow Jones closed marginally in the red.

With foreign flows marginally slowing down expect stock/sector outperformance to continue as the index consolidates with Nifty finding resistance @ 8,400 & the Sensex @ 28,000.

The fall in oil & inflation should see the Central bank cut the lending rates early December & with yields now near 18 month low @ 8.18, expect financials to continue to outperform the benchmark index.

Trading calls with 3/4 day outlook:

1) Buy State Bank of India @ 2745-2757, stop loss 2700, target 2830-2835

2) Buy UltraTech Cement @ 2620-32, stop loss 2580, target 2720-25

We are also carrying out previous trades as under:

1) Buy GAIL India @ 486-491, stop loss 477, target 520-523

2) Buy ICICI Bank @ 1682-1688, stop loss 1652, target 1740-45

3) Buy ITC @ 367-372, stop loss 361, target 387

4) Sell Tata Global Beverages @ 157-162, stop loss 166, target 148

We are also re-iterating our earlier buy call with a further accumulate on Aditya Birla Nuvo as under:

Aditya Birla Nuvo : Recommended buy @ 1400, then @ 1620 & now @ 1800 for 1 year target 3200-3300.

Its results were much ahead of street expectation with growth in all verticals. As earlier suggested the textile & fashion business has outperformed in terms of volumes & margin expansion. Expect significant re-rating of fashion business with Madura Coats & Pantaloons brand outperforming peer groups.

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