Buy Tata Motors, sell Tech Mahindra today: Sanjeev Bhasin

Markets are likely to face high volatility on expiry of F&O (futures & options) contracts today. Lower than expected roll over of contracts on the Nifty could see spike in options.

Globally, the Dow Jones is back to within 100 points of new highs, while Asian markets seem set to bounce back after three days of correction.

Fall in oil & gold prices are likely to renew "risk on" trade with emerging market funds benefiting.

For today buying auto & banks on the long side could make money, while shorting, IT, FMCG & select mid cap outperformers could give a decent hedge.

Trading calls for today:

Longs:

1. Buy Maruti Suzuki: 1975, stop loss 1956, target 2065

2. Buy Tata Motors: 427, stop loss 419, target 456

3. Buy Bank of Baroda: 780, stop loss 765, target 819

Shorts:

1. Sell Apollo Tyres: 168, stop loss 172.5, target 150

2. Sell Tech Mahindra: 1778, stop loss 1809, target 1676

3. Sell HUL: 597, stop loss 605, target 581

Investment call:

Buy Indian Overseas Bank: 50-55, 3 month target 70

Why: Good franchise PSU bank, which has underperformed due to high exposure to power, coal & mining related companies. Will benefit as non-performing assets (NPAs) are set to improve with companies hiving off stake in power projects and after the recent court ruling lifting mining ban. Expansion in net interest margins likely.