Indian stock markets are likely to rebound on Friday and rumour-based profit booking in second half of trade on Wednesday sent high beta stocks lower. Positive global cues & weakness in oil is likely to boost sentiment.
The Nifty is critically poised at 6,700 levels and should see consolidation today. With foreign flows turning positive and rupee strengthening, expect a gradual up move in markets from today.
Weak oil prices, IMF funding for Ukraine should see improvement in geo-political risk.
These three pair trades in oil marketing companies, banks and auto should work for investors today.
Trading calls for today:
Longs:
1. Buy BPCL: 454, stop loss 446, target 480
2. Buy Tata Motors: 414, stop loss 406, target 432
3. Buy SBI: 2075, stop loss 2045, target 2145
Shorts:
1. Sell ONGC: 326, stop loss 333, target 310
2. Sell Maruti Suzuki: 1925, stop loss 1955, target 1850
3. Sell HDFC Bank: 723, stop loss 732, target 690
Investment call:
Buy Vijaya Bank: 40, 3 month target 55 (Why: The stock has underperformed because of a rise in NPAs & asset impairment. However, it has a dividend yield of 6.5 per cent and has shown strength in terms of net interest income and credit growth. The stock will do better once interest rate scenario changes.)
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