Sell Maruti Suzuki, buy ICICI Bank today: Sanjeev Bhasin

Markets are on course to test higher levels, with the Nifty poised to touch 6,800. However, markets are ignoring negative global cues and the return of the risk trade is back.

Unrest in Ukraine has led to a spike in oil and gold prices and selloff in US equities. Asian markets, ex-Japan, are mostly in the green with new money now betting on the return of the emerging market growth story.

The second half of trade could see some correction today as profit booking could set in.

For today, going long on select cement, banks, housing finance and telecom should make money, while shorting in OMC (oil marketing company), auto & capital goods should be a good hedge on the down side.

Trading calls for today:

Longs:

1. Buy LIC Housing: 246, stop loss 239, target 265

2. Buy Ambuja Cements: 208, stop loss 203.5, target 223

3. Buy ICICI Bank: 1208, stop loss 1190, target 1265

4. Buy Reliance Communications: 133, stop loss 126.5, target 146

Shorts:

1. Sell Maruti Suzuki: 1905, stop loss 1946, target 1790

2. Sell BPCL: 439, stop loss 446, target 414

3. Sell IOC: 276, stop loss 284, target 251

4. Sell Voltas: 159, stop loss 164, target 139

Investment call:

Buy State Bank of India: 1825-1900, 3 month target 2200 (Why: Largest PSU bank, which has underperformed because of high non-performing asset (NPA) provisioning and restructuring of corporate loans. Now, seems set to outperform on back of interest rate status quo, selling of bad loans, bottoming out of NPA, expectation of capital infusion and increasing net interest margin.)