Top stocks to buy and sell today: Sanjeev Bhasin

Global markets have turned around amid an easing of the Ukraine. Overnight, US stocks finished in record territory as fear receded & sentiment improved.

In India, the Nifty futures on the Singapore Exchange traded higher, indicating a positive start for markets. Nifty will now find resistance close to 6,380-6,400 and after a steady pull back, it may consolidate around these levels.

Technically, the Nifty has filled the gap left on January 24 and now will attempt the final hurdle of the all-time high at 6,415. The high beta "bank nifty" also closed at its 200 Day Moving Average (DMA) at 10,909 and was the best performing index on Tuesday.

Markets could open strong today, but profit taking in the second half of trade is possible. Investors should be cautious as markets tend to consolidate around these levels last seen in December 2013. The positives from the current rally include broader market participation and also new highs despite underperformance from large heavyweight Reliance and PSU bank stocks.

Sectoral call for Wednesday: Banks, auto may witness buying today, while pharma and IT may see some pressure today.

Trading calls for Wednesday:

Longs:

1) Tata Motors: buy 410, stop loss 403, target 432

2) IndusInd Bank: buy 410, stop loss 392, target 432

3) Yes Bank: buy 318, stop loss 303, target 340

4) SAIL: buy 56, stop loss 54, target 62

Shorts:

1) Maruti Suzuki: sell 1600, stop loss 1648, target 1530

2) HCL Tech: sell 1500, stop loss 1550, target 1423

3) Cipla: sell 380, stop loss 389, target 366

4) Dr Reddy: sell 2805, stop loss 2848, target 2715

Investment calls:

Nucleus Software: buy 225, 3-month target 324. (Why: Mid cap IT companies operate in strong niche verticals, with volume and margin expansion being the key calls)

Bajaj Electricals: buy 258, 3-month target 351. (Why: This is the best buy in electrical consumption space with quarterly results showing strong traction in volumes and margins)