This Article is From Nov 23, 2016

Buy Tech Mahindra, Accumulate Hindalco; Sell HDIL: Sumeet Bagadia

The index is expected to hit levels of 7,900-7,850 in next couple of days, says Mr Bagadia.

The Nifty has broken below the 8,000 level and the overall structure is looking weak till it closes above 8,030. If there is any pullback on account of expiry of F&O contracts, it should be used as a selling opportunity, says Sumeet Bagadia, associate director at Choice Broking. "We expect Nifty to touch levels of 7,900-7,850 in next couple of days," he adds.

Stock Talk

Buy Tech Mahindra: Traders can buy this stock at the current market price or on dips towards Rs 440 with a trailing stop loss at Rs 430 for an immediate target of Rs 470-480. Above Rs 480, it can go up to Rs 500 as well.

Accumulate Hindalco: There can be correction of Rs 8-10 in this stock given volatility and the ongoing correction in the markets. However, correction will be a good opportunity to accumulate Hindalco as it can go up to Rs 190-200 very soon and it is expected to go up to Rs 280 in a slightly longer term.

Buy PSU banks: Investors can buy PSU banks like Union Bank of India, Punjab National Bank, State Bank of India, Canara Bank and Bank of Baroda for the next three-four months' time frame for an upside of 25-30 per cent.

Sell HDIL: Traders can sell HDIL at the current market price or on a pullback for a target of Rs 52-50.

Sell Dewan Housing Finance: Traders can go short on DHFL on pullback or at the current market price as the stock can go down to Rs 210. Below Rs 210, it can go down Rs 200-190 also.

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