Sell Sun Pharma, Ranbaxy; buy Axis Bank today: Sanjeev Bhasin

Indian stock markets are poised for a positive opening on the back of a global rally overnight. The three-day selloff could be near the end as 6,700 would act as strong support on the Nifty. Weak results, profit booking & consolidation may be clearing the way for a market rally today.

The real outperformer has been the Indian rupee which is showing signs of breaching 60 per dollar after nearly three weeks.

For today, long in select auto, banks & infra could make money, while weakness in pharma & steel stocks should do well on the short side.

Trading calls for today:

Longs:

1. Buy Axis Bank: 1528, stop loss 1500, target 1628

2. Buy Tata Motors: 408, stop loss 400, target 432

3. Buy Reliance Infra: 530, stop loss 518, target 552

Shorts:

1. Sell Sun Pharma: 639, stop loss 650, target 612

2. Sell Ranbaxy: 484, stop loss 493, target 450

3. Sell SAIL: 69, stop loss 70.75, target 65

Investment call:

Buy Prestige Estates: 170, 3 month target 200

Why: Has posted excellent results for two consecutive quarters. Management expects strong traction in rental income & leasing going forward. It is a key player in the Bangalore market.