Sell IT stocks, Reliance Industries, buy PSU banks today: Sanjeev Bhasin

Indian stock markets are likely to open higher on the back of positive global cues and strong foreign flows. However, second half profit booking could be possible today ahead of Reserve Bank's policy meet tomorrow.

With Nifty in unchartered territory, 6,800 could be the first resistance. Broader market outperformance could continue. Rupee below 60 per dollar could see importers outperform exporters and IT, pharma could continue to see weakness. Oil marketing companies (OMCs) and dollar leveraged metal companies could outshine.

Long on metals, OMCs and PSU banks, while short on oil & gas & IT should do well for today.

Trading calls for today:

Longs:

1. Buy NMDC: 137, stop loss 132, target 147

2. Buy Tata Steel: 381, stop loss 372, target 397

3. Buy BPCL: 452, stop loss 439, target 492

4. Buy Syndicate Bank: 95, stop loss 90, target 106

Short:

1. Sell Cairn India: 330, stop loss 337, target 321

2. Sell Reliance Industries: 917, stop loss 934, target 890

3. Sell Wipro: 555, stop loss 563, target 532

4. Sell Tech Mahindra: 1836, stop loss 1858, target 1772

Investment call:

Buy Tata Global: 143-148, 3-month target 175 (Why: Market leader in beverage market and now growing rapidly locally through the "Starbucks" franchise. Has seen improvement in results as input costs have reduced and margins have gone up. Best domestic consumption play with growing market share in coffee, beverage & water market).