Stock markets are likely to consolidate on Monday after 4 per cent gain last week. Weak China data & resumption of tension in Ukraine/Russia will also weigh on markets. Profit booking could set in the second half of the trading session.
Foreign ETF (exchange traded fund) buying might continue, though domestic Institutional selling will counter the same. With global cues being dominant expect rupee to also consolidate and weaken a bit. Nifty is likely to find support at 6,480 and face resistance close to 6,600 levels.
High beta could see profit booking, while midcap stocks could outperform. For today sell infra, banks & auto & buy financial services, auto OEM (original equipment manufacturer), telecom & metals.
Trading call for today:
Longs:
1. Buy Bharti: 295, stop loss 287, target 315
2. Buy LIC Housing: 221, stop loss 216, target 232
3. Buy Exide: 117, stop loss 113, target 129
4. Buy Sesa Sterlite: 185, stop loss 181, target 198
Shorts:
1. Sell Bank Nifty: 11900, stop loss 12125, target 11450
2. Sell Axis Bank: 1415, stop loss 1435, target 1360
3. Sell JP Associates: 47.5, stop loss 49.5, target 45.5
4. Sell Maruti Suzuki: 1736, stop loss 1760, target 1666
Investment call:
Buy Ashok Leyland: 15-16.5, target 3 months 25 (Why: Has seen huge underperformance due to shut down in manufacturing, labour trouble etc. The company is now on recovery track with strong traction in bus & commercial vehicle segment. Is the best proxy to recovery in economy and is priced very attractively.
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