Ashwani Gujral: BUY Maruti Suzuki, Axis Bank, Dr Reddy’s, Cadila Healthcare and Hindalco
Market analyst Ashwani Gujral is bullish for the day with five BUY Calls for stocks. Indian markets registered smart gains on Tuesday and market analysts are expecting the pull-back rally to continue on Wednesday. We could witness selling pressure at higher levels but markets are expected to close in the green on Wednesday. Traders should be cautious and should keep strict stop loss in order to minimize loss in case the markets don’t perform as expected.
US markets ended flat but there are some encouraging reports regarding coronavirus pandemic. The number of new detections are slightly less compared to the last few days and investors are expecting that the efforts made by governments worldwide are having a positive impact in dealing with the pandemic.
Maruti Suzuki is on Gujral’s buying list for the day with a stop loss of Rs 4,400 and a target price of Rs 5,000. Maruti has recently touched 52-week low of Rs 4002 and the stock has taken support from that level.
Banking major Axis Bank is also on Gujral’s radar for the day with BUY call with a stop loss of Rs 385 and a target price of Rs 420.
As pharmaceutical companies have been safe bet during these days of panic selling, Gujral has two companies on his BUY list for the day from pharmaceutical sector. Dr Reddy's Laboratories can be bought with a stop loss of Rs 3,590 and a target price of Rs 3,700. Gujral suggested BUY CALL for Cadila Healthcare with a stop loss of Rs 305 and a target price of Rs 330.
Gujral added that metal counter Hindalco is a BUY with a stop of Rs 96 and a target price of Rs 110.
Traders should keep strict stop loss while trading during volatile sessions.