The Nifty is in a bull run and is headed much higher, says Sarvendra Srivastava, head technical research at Phisense.com. Defensive stocks like IT and pharma will underperform going ahead, he added.
Stock Talk
Buy Tata Steel: Investors can look to buy this stock for target of Rs 450-500 in next 9-12 months.
Buy LIC Housing Finance: Housing finance companies will remain in favour. Investors can buy LIC Housing Finance from 6-12 month time horizon for upside of 15-20 per cent from current levels.
Buy DLF: Investors should look to buy DLF for 6-9 month time frame for target of Rs 190-200.
PSU Banks: When PSU banking shares went down, they were heavily oversold and now the bounce is a bit over stretched. Risk reward is not in favour for going long at current levels, but worst is over for these stocks. Investors should buy these stocks on declines.
Avoid Tata Motors: The stock at current juncture is slightly overbought. Fresh long positions should be avoided at current levels and investors should look to buy Tata Motors on declines towards Rs 460.