Buy Indian Oil, HPCL; Sell Aurobindo Pharma: Ruchit Jain

The Sensex and Nifty staged a correction on Thursday owing to selling pressure in banking, IT, pharma and auto stocks. Meanwhile, NDTV Profit spoke to Ruchit Jain, equity technical analyst with Angel Broking, to discuss trading strategies for various stocks and sectors:

Stock Talk

Buy Indian Oil, Bharat Petroleum and Hindustan Petroleum: These stocks have been in uptrend and are continuously forming higher top higher bottom formation on charts. Meanwhile, if any correction comes in these shares it will be a more of time correction rather than a price correction. Indian Oil and HPCL can outperform the broader markets among these shares.

Sell Aurobindo Pharma: The stock is close to its resistance of Rs 850, the high last seen during the last week of 2015. The stock should correct from current levels and traders should go short on Aurobindo Pharma with stop loss at Rs 895 for target of Rs 800 in next 3-4 days.

Buy Lupin: Investors can buy this stock from time frame of 6-8 months as it is trading near its long-term support levels. Stop loss: Rs 1,370

Buy Sun Pharma: The stock is trading close to long-term support levels. Investors can buy Sun Pharma from perspective of 6 months.

Avoid metal stocks: Overall trend for metal stocks is positive, but after a recent rally, risk-reward is not in favour of going long at the current juncture.

Buy Tata Steel: The stock is in an uptrend and it can go up to Rs 410.

Avoid IT stocks: I would like to avoid creating long positions at current levels in IT space. On immediate basis, IT stocks are likely to go into phase of consolidation and prices will remain sideways.

Disclaimer: Investors are advised to make their own assessment before acting on the information.