Sun Pharma, HDFC Bank & Tata Motors: Here's what Akshay Bhagwat of JM Financial says on these 3 stocks

Akshay Bhagwat, Senior Vice-President, Derivatives Research at JM Financial Services, on Tuesday said Nifty reclaiming 19,200 indicated strength in the headline index. On the stock-specific front, the market expert picked Sun Pharmaceutical Industries Ltd as one of his top picks. Going by technical charts, the counter looks positive. It is heading for a breakout above Rs 1,160 soon. One can 'Accumulate' Sun Pharma in the range of Rs 1,140-1,150. The breakout should target Rs 1,200 on the upside and timeframe would be 15 trading sessions. Keep stop loss placed at Rs 1,090," Bhagwat told BT TV.

Sun Pharma shares were last seen trading 0.53 per cent higher at Rs 1,155.70 today.

When asked to select a stock for the day, the expert liked HDFC Bank Ltd. "The stock is currently creating a support base around Rs 1,460-1,480. A strong put writing activity has been noted at the money strike of Rs 1,500 in the derivatives space. A pullback is expected in today's session. If it recovers then Rs 1,525 will be target for today, keeping a stop loss at Rs 1,460," Bhagwat stated.

HDFC Bank fell 0.64 per cent to trade at Rs 1,484.65.

In addition, the market expert suggested Tata Motors as a long-term bet. "The stock could hit Rs 900-1,000 levels in a year. For risk management, keep stop loss placed at Rs 525," he mentioned.

Tata Motors shares edged 0.09 per cent higher at Rs 646.55 today.

Meanwhile, Indian equity benchmarks were trading lower today, dragged by banks and financials. Broader market (mid- and small-cap) shares were mixed.

Foreign institutional investors (FIIs) remained net sellers during the previous session, extending their selling streak to the ninth session and offloading Rs 549 crore of shares on a net basis. Domestic institutional investors (DIIs) bought shares worth Rs 596 crore.

Nine out of the 15 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty Bank and Nifty Financial Services were underperforming the NSE platform by falling as much as 0.40 per cent and 0.36 per cent, respectively. However, Nifty Pharma rose 0.66 per cent.

On the stock-specific front, ICICI Bank was the top loser in the Nifty pack as the stock cracked 0.96 per cent to trade at Rs 936.4. PowerGrid, Asian Paints, HDFC Bank and Coal India fell up to 0.86 per cent.

In contrast, Dr Reddy's, ONGC, IndusInd Bank, Sun Pharma and Bajaj Finserv were among the top gainers.

The overall market breadth was positive as 1,674 shares were advancing while 1,252 were declining on BSE.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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