Hi Diksha, as you had suggested, I am holding Birlasoft, Bharti Airtel, DLF and EID Parry? What is your view on exiting these stocks? Also, do you have any fresh trading ideas?

I told you in the previous week also that the falling VIX is a sign of an emerging positive trend in the market. It does look like the markets should stabilize and bottom at around these levels or slightly lower. From a trading perspective, you must use every opportunity to buy and churn, but the moral of the story is that you do not need to worry about a sharp correction in the markets. Regarding the four stocks, here is the quick view.

· Birlasoft at Rs.272 (CMP-246) – Suggest hold

· Bharti Airtel at Rs.546 (CMP-532) – Suggest to hold

· DLF at Rs.324 (CMP-288) – Suggest to hold

· EID Parry at Rs.342 (CMP-340) – Suggest to hold

Let me now turn to what stocks to buy. As you are aware, there are still a good number of positions open. However, I am suggesting two stock ideas for the day. Both the stocks recommended today are a play on the power sector.

a) You must look to seriously buy into the power sector story, which is showing signs of a quiet rebound. Buy Power Grid Corporation at Rs.227 for price targets of Rs.255 in 1-2 months. Power Grid is likely to be a big beneficiary of its recent acquisition deal with a unit of Jaypee Power. With the deal, the joint venture will become a subsidiary.

b) Continuing on the power sector story, I would also suggest to buy Tata Power at a price of Rs.104 for targets of Rs.140 in 2-3 months. This is a conservative target and could be larger the way the company is reinventing itself. The stock looks specifically good after its recent expansion in state of Odisha by purchasing of 51% in NESCO from GRIDCO.