Monday, August 9, 2010

Book Profit in Banks: SBI can go upto Rs 2775-2800, in Auto Sector Go for Tata Motors

Banking stocks went into some kind of consolidation over the last three days now they are back again. ICICI Bank Rs 1010 is possible, SBI provided results are good, you could see levels of Rs 2775-2800, it seems like they are exhausted and they are going into a correction but given today’s action, it is possible that they may just be moving sideways before another upmove.
In the auto sector, Tata Motors is our preferred pick. We also like Bajaj Auto and Hero Honda. With Maruti we are kind of neutral because I think we got a little bit negatively surprised by the whole royalty thing. The growth seems to be still coming through particularly in the two-wheelers and CVs etc. So my sense is that the best way to play it is through probably a combination of Tata Motors and perhaps Bajaj Auto or Hero Honda.
Last month we were pretty bullish on Mahindra & Mahindra but now that its run up to the Rs 650-660 levels, it doesn’t seem to offer too much more upside from here. This could be a good point at Rs 650 levels to put up some shorts and it will move back down to trading range of around Rs 610-611. For traders you should be looking at playing that sort of a range and with the Nifty looking like its going to dip moves slightly downwards from here, We think it’s a good stock and in fact it’s been good sector to be short on at this point of time.


Posted By Commodity MCX Tips