Prefer HDFC Bank Over Axis, HPCL Over BPCL: Ruchit Jain

Ruchit Jain of Angel Broking says investors should not be too worried about Indian markets because of the selloff in Chinese markets. The Nifty has been trading between 8,300 and 8,650 over the last few weeks, but the market breadth has been positive over the last few days, he added. Traders should turn bearish only if Nifty slips below 8,300, said Mr Jain. (Watch)

Stock Talk

PSU banks: Buying momentum has come in these stocks with good volumes. One should not create short position in PSU banks because of the fact that they have risen around 10-15 per cent recently. Any decline in PSU names, especially SBI, Union Bank and Bank of Baroda should be used as opportunity to buy.

Sell Axis Bank, buy HDFC Bank: If Bank Nifty corrects then investors should go short on private banks like Axis Bank as it is showing weakness. One could do pair trading by going short on Axis Bank and going long on HDFC Bank for short term. However, longer term charts are still bullish in Axis Bank.

HPCL better bet than BPCL: Higher-top and higher-bottom formation is still continuing in these stocks. These two stocks have continued to see buying interest on every decline. One should use every decline in these stocks as buying opportunity unless they make lower-top and lower-bottom formation. HPCL would be preferred over BPCL.

DLF: Buying momentum has been seen in the stock with first signs of higher-top and higher-bottom being formed on daily charts. Investors should not go short in this stock. Resistance is seen around Rs 138- Rs 140 levels.