Financial Expert of Anand Rathi Brokerage, Chandan Taparia suggested to buy DLF stocks this time, during an exclusive interview to CNBC-TV18. Later he emphasised on buying Ashok Leyland and L&T Housing Finance’s stocks and sell Cipla soon.
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Chandan Taparia told CNBC-TV18, “First stock is a buy on DLF . We have seen the stronger rally in Indiabulls Real Estate and HDIL and DLF also is moving well from last two trading sessions. It has taken multiple support near Rs 220 zone and also given the move towards Rs 132-134 kind of levels. So, recommending to buy 130 Call keeping the stop loss of Re 1 and expecting this Call to move towards Rs. 6.”After DLF, Taparia shifed next focus to Ashok Leyland, saying that automobile industry has witnessed a strong recovery and the pressure to sell off Leyland is almost over. He said, “Earlier it was finding hurdle near to Rs 99.65 zone, now the previous resistances are likely to extent support and this stock can move towards Rs 108. One can buy Ashok Leyland for trading as well as the positional point of view.”
Anand Rathi Brokerage observed a buying interest in selective housing finance companies like L&T Finance Holdings and SKS Microfinance or M&M Financial Services. That is why he suggested going for L&T Housing Finance with the target of Rs 77.50 and a stop loss of Rs 70.50.He further added, “M&M Financial and SKS Microfinance are also on the radar. I will suggest going with SKS Microfinance, keep the stop loss of Rs 625 and expect it to move towards Rs 655 kind of levels.”
Coming to the selling options, Taparia came up with 2 names, Cairn India and Cipla. He mentioned that these stocks are witnessing bounce back move and then fresh selling are being built in the counter. All these stocks are adding built up of short positions. Cairn India is falling down from last six-seven weeks and making lower top lower bottom formation. It is all set to break the immediate support over Rs 135 and go towards Rs 130 levels. One can sell with a stop loss of Rs 140 for the downside target.Justifying the consideration to sell off Cipla, Taparia said, “The stock has failed to surpass Rs 550 zone couple of days back and now continuously falling down from last five trading sessions. Weakness may continue and one can sell with a stop loss of Rs 530 with a potential downside target of Rs 508.”