Buy Bharti Airtel, Idea; sell HPCL, BPCL: Sanjeev Bhasin

NDTV Profit Desk

15 Apr 2014, 08:51 AM IST

Markets will react to Infosys numbers and guidance as the bellwether sets the tone for quarterly results. Overnight the US markets made a strong come back after consecutive sessions of losses.

Ukraine issue escalation and oil price spike will be the key imponderables market will have to deal with over the next few weeks.

Profit booking on rallies should be the key today as most good news already priced in.

The nifty has faced multiple resistances around 6800 and that could act as strong barrier. The broader market outperformance also could take a breather.

For today buying in telecom stocks, select steel and oil producer could make money, while selling in oil marketing companies, select metal and capital goods should give a decent hedge.

Trading calls for today:

Longs:

1. Buy Bharti Airtel: 322, stop loss 317, target 333

2. Buy Idea: 142, stop loss 138, target 151

3. Buy Cairn: 358,stop loss 351, target 372

4. Buy Tata Steel: 418,stop loss 411, target 436

Shorts:

1. Sell BPCL: 445,stop loss 457, target 422

2. Sell HPCL: 311,stop loss 318, target 297

3. Sell L&T: 1315, stop loss 1329, target 1262

4. Sell Sesa Sterlite: 196,stop loss 201, target 180

Investment call:

Buy PFC: 180-185, 3 month target 225

Why: One of the key power finance companies, PFC has underperformed as receivables from state electricity boards are under pressure and delayed. However it will benefit from recently implemented power reforms and will see improvement in margins. It will also be the key beneficiary of fall in interest rates.