Buy IndusInd Bank, BPCL Today: Sanjeev Bhasin

Indian stock markets are likely to witness a positive opening on Thursday as Dow Jones rallied overnight and Asian markets traded higher today. The resumption of rally globally now seems on the cards and the Nifty may cross the 8,200 hurdle in October.

Expect volatility in high beta metal and PSU banks after the Supreme Court cancelled 214 coal blocks in a landmark judgement yesterday. Markets have discounted most negative news flow and will digest the coal blocks cancellation over the next few weeks.

Trading calls (3-4 day outlook),

1) Buy IndusInd Bank: 620-626, stop loss 608, target 656

2) Buy BPCL: 638-644, stop loss 619, target 676

Previous trading calls,

3) Buy ITC: 367-372, stop loss 360, target 385

4) Sell Asian Paints: 634-638, stop loss 650, target 609

5) Buy Wipro: 578-583, stop loss 567, target 609

6) Sell Infosys: 3630-3670, stop loss 3715, target 3510

7) Option calendar: Sell September 8,100 call at 12-15, sell September 8000 put at 24-26 for a total premium of 36-38; Buy October 8100 call at 110-115, buy October 8000 put at 84-87 for a total premium of 197-200. Net premium paid = 160-163; Square up on Friday around 178-185.

8) Investment call: Buy Aditya Birla Nuvo, earlier recommended around 1400, now reiterate buy around 1700 for 1 year target 3000.

Why: The company has interest in telecom, financial services, life Insurance and lifestyle fashion. Madura Fashion & Lifestyle, a unit of Aditya Birla Nuvo, has outperformed the industry, registering a growth of 15 per cent. The market cap of AB Nuvo is only Rs 20,000 crore. We expect significant re-rating in fashion business after acquisition of Pantaloons Fashions and expect market cap to cross Rs 40,000 crore in next one year.