Trading Calls: Buy ONGC; Sell DLF, Aurobindo Pharma, Says Aditya Agarwal
Aditya Agarwal, head technical research at Way2wealth, says the Nifty has managed to defend a crucial support area around 7,900 despite short-positions getting built up. Investors should watch out for this level and if the index breaches this level decisively, it can test 7,750-7,700 levels on the downside, he adds.
Stock talk
Buy Reliance Infra: Reliance Infra looks good from the Reliance ADAG pack and investors can initiate long positions after some correction. The stock may correct towards Rs 420-425 levels which can be used as a buying opportunity.
Buy ONGC: The stock has already seen some correction and more profit booking is expected in the next couple of days. ONGC can test Rs 180-175 levels on the downside and Rs 175 is a good level to buy for a target of Rs 200-210 with stop loss at Rs 165.
Buy Reliance Industries: The stock is looking strong after pulling back from its crucial support of Rs 980. However, Rs 1,070 remains a strong resistance zone for RIL. Investors may look at taking long positions around Rs 1,000 and once the stock takes out Rs 1,070, Rs 1,120 could be its next target.
Sell DLF: The stock has broken a support zone of Rs 105 and is expected to trade with a negative bias going forward. DLF may retest Rs 95-92 levels in the next couple of days. Levels around Rs 105 can be used to make fresh short positions for an immediate target of Rs 95 with stop loss at Rs 111.
Avoid Divi's Laboratories: The stock has seen some correction but short positions are not advisable as the risk-reward ratio is not in favour of sellers at the current prices. Investors should wait for a next crucial level of Rs 650 before taking fresh long positions.
Sell Bharat Financial Inclusion: The stock is trading near a support level of Rs 465-460 and a minor pullback is expected after good correction. Bharat Financial Inclusion is expected to consolidate between Rs 440 and 450 on the lower side and Rs 500 on the higher side, and any pullback towards Rs 495-500 can be used to initiate short positions.
Avoid Lupin: Barring one or two stocks, no major buying is seen in the pharmaceuticals space. Lupin has defended a very crucial support zone of Rs 1,390-1,380 for last three-four months. Investors may look at initiating short-positions around Rs 1,380 for a correction towards Rs 1,215-1,220 with stop loss at Rs 1,445.
Sell Aurobindo Pharma: Though one of the strongest counters in the pharma space, the stock is trading in a range and some correction is expected. Investors may sell at the current levels for an immediate target of Rs 580 with stop loss at Rs 646.
Sell Axis Bank: The stock has broken a strong support zone of Rs 440-445 and is expected to suffer some follow-up selling. The stock is seen trading with a negative bias in the near term and may test Rs 410-390 levels in the next couple of days. Investors may look at selling around Rs 445-450 for a short-term target of Rs 410.
Disclaimer: Investors are advised to make their own assessment before acting on the information.
