Buy Tata Steel, L&T Today: Sanjeev Bhasin

Indian stock markets are set to open lower as weak global cues have hit Asian bourses. In the short term, the Nifty looks oversold and could find support around 7,800.

Time bound correction will play out in the markets and corporate earnings will be next trigger for stocks.

Investors should buy the following stocks with a 1 month outlook,

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

2) Buy L&T: 1400-1415, target 1525

3) Option strategy for next three days: Buy Infosys 3600 put at 45-55, target 100

We are also carrying previous trades,

4) Buy IOC: 360-365, stop loss 351, target 384

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

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

7) 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.

The pair trade on ONGC and Cairn India returned profits of 7 per cent. (Buy IOC, HPCL, BPCL Today: Sanjeev Bhasin)