Rahul Shah of Motilal Oswal told CNBC-TV18, “I think the sectors which are doing well are auto, finance and metals. Metal pack has been continuously on an uptick. Today also we saw a lot of gainers in the metal pack. So in that space, I think Tata Steel is one stock I like. So one should go long Tata Steel with a stop loss of Rs 705 and target of Rs 740.”
“Second is banks. We have seen a lot of correction but I think in private sector banks one needs to buy at lower levels. Federal Bank is one which we have been liking. After consolidating between Rs 112 to Rs 115 now it is on up move and got into a new territory. So I think the longs have added in Federal Bank and it can go to Rs 122 levels or so. So buy Federal Bank with a stop loss of Rs 115 for target of Rs 122.”
“Third is telecom. We saw some good momentum on Friday, the longs in Bharti Airtel and Idea Cellular. So, I think Idea Cellular looks more convincing rather than Bharti Airtel. I would go long on Idea Cellular with a stop loss of Rs 79 and target of Rs 85,” he said.