2 buys and a sell today from Angel Broking’s Amar Singh

Talking to ET Now, Amar Singh, Head Advisory, Angel Broking, says buy Tech Mahindra and Shriram Transport Finance and short PNB.

Edited excerpts:


What is your view and your strategies as we approach the session?

Overall, today we might see a temporary respite from the massive selloff that we witnessed yesterday because of the global cues and Asian markets trading mixed. Also the market on the daily charts is moving towards an oversold zone. There could be some strong support zone for the Nifty around 9685 that was its 11th August low, so that is a major support.

You can say 9670 to 9700 is a crucial and key level of support for the Nifty. What we are going to witness is some short covering the market. The market could move up slightly higher initially to 9780 and then 9820 levels or so. But again, we could witness some selling pressure there because the market is likely to consolidate.

As far as strategies for today are concerned, the first is a buy on Tech Mahindra. What we are seeing in the IT space is that specifically the stocks have been able to hold out in spite of the selloff and also if the sharp depreciation of the rupee sustains, that could be a positive for the IT stocks. So the first is Tech Mahindra, it can be a buy in the range of Rs 445-446 with a stop loss of Rs 439 and a target of Rs 457.

The next stock to look at is PNB. There has been a continuous slow and steady selloff in the banking sector and so any pullback towards Rs 135 can be used as a shorting opportunity with a stop loss of Rs 138.60 and a target of Rs 130.

The third stock to look at is Shriram Transport Finance that is on the buy side. What we are seeing in Shriram Transport Finance that the stock has bounced back quite well from 960 levels to continue to trade around 1045-1050 levels.

Any pullback towards Rs 1040 can be used as a buying opportunity with a stop loss of Rs 1019 and a target of Rs 1084.