Buy State Bank, PNB, Sell Sun Pharma Today: Sanjeev Bhasin

Indian stock markets are likely to open higher tracking strong gains in the US. Expect broader market outperformance to continue with selling in defensives and buying interest in banking stocks.

The Nifty has managed to hold 7,840-50, which technically shows a "double bottom" formation. The same should see the nifty rally back to 8,000 by next week.

Trading calls with a 3/4 day outlook,

1) Buy State Bank of India: 2410-2425, stop loss 2360, target 2570

2) Buy PNB: 875-885, stop loss 860, target 925

3) Sell Dr Reddy's: 2965-2980, stop loss 3040, target 2865-70

4) Sell Sun Pharma: 800-810, stop loss 825, target 730-35

Hold previous trades,

5) Buy Tata Steel: 435-440, 1 month target 512

6) Buy L&T: 1400-1415, 1 month target 1525

7) Buy IOC: 360-365, stop loss 351, target 384 (Keep stop profit at 376 & target now 390)

8) Buy HPCL: 485-490, stop loss 475, target 522

9) Buy BPCL: 650-655, stop loss 637, target 685

10) Option trade on Bank Nifty (short strangle): Sell Bank Nifty 16000 call at 150-155, sell Bank Nifty 15000 put at 130-135 for total premium of 280-285. Look for reduction in volatility and buy around 120-125 as time series plays out.