Buy Biocon, Dewan Housing Finance; Avoid Muthoot Finance: Sumeet Bagadia

The Nifty is facing resistance around 8,200 and till the time 8,200 is not broken convincingly there is a possibility that Nifty may see selling pressure at higher levels, says Sumeet Bagadia, associate director at Choice Broking. On the downside, Nifty has support around 8,060-8,070 and if it falls below support levels then it can fall towards 7,920  and if 7,920 is broken then it can go further down to 7,800 levels as well, adds Mr Bagadia.

Stock Talk

Buy Biocon: The stock has given a good move and it can stage more upside from current levels. The stock is likely to trade in range between Rs 840 and 950. Meanwhile, traders can buy Biocon at current market price or on dips for target of Rs 950-970 with stop loss at Rs 880-885.

Avoid Muthoot Finance: The stock staged good bounce back but the overall structure for this stock is still looking bearish. In the current pullback it can go up to Rs 320-325 levels. However, the stock will face selling at higher levels and on downside it can test levels of Rs 270-250.

Buy Dewan Housing Finance: Purely from a trading perspective this stock is looking good. The stock has support at Rs 240 while it faces resistance around Rs 260 and if it moves above Rs 260 it can go up to Rs 270 as well but if downside support breaks then it can fall to Rs 230.

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