Nifty set to top 6,600, buy auto stocks: Sanjeev Bhasin

The Nifty is set to cross 6,600 levels on Wednesday tracking positive global cues. Second half of the session today may be volatile as European markets open for trade & could see profit booking re-emerge.

Rupee strength, foreign flows & new market highs seem to indicate expectation of higher growth for the economy coupled with better corporate earnings.

The auto sector could emerge as an outperformer today along with banks & select metals. Telecom stocks seem to be lagging the markets & could be a good short hedge.

The outperformance of the broader market may continue & sectoral rotation in cyclicals could be the order of the month.

Trading calls for today:

Longs:

1. Buy Tata Motors: 390, stop loss381, target 412

2. Buy Maruti Suzuki: 1900, stop loss 1876, target 1965

3. Buy SBI: 1740, stop loss 1701, target 1805

4. Buy NMDC: 134, stop loss 129, target 145

Shorts:

1. Sell Bharti Airtel: 296, stop loss 304, target 281

2. Sell Idea Cellular: 135, stop loss 141, target 126

3. Sell Reliance Communication: 122, stop loss 127, target 115

4. Sell Hindalco: 121, stop loss 126, target 115

Investment call:

Buy Oriental Bank of Commerce: 190-195, 3-month target 274 (Why: Strong north India based PSU bank with very strong & diversified branch network. Has been proxy to slowdown in economy with large exposure to SEBs (state electricity boards), which has been the main cause of NPA increase. Should be proxy to power reforms kicking in & better credit cycle growth. Trades at very attractive valuations).