Hi Diksha, I am holding on to HCL Tech and Tata Chemicals, where I am having small profits. Do you suggest booking profits? Also, do you have any fresh stock recommendations?

One thing good about these markets that has given confidence is that in spite of the pressure from global cues, the VIX has tapered around the 21 levels. That is a reasonable level of risk and hints that downsides could be limited. I am not suggesting any changes and you can hold on to HCL Tech and Tata Chem for the time being. Here is how.

· HCL Tech at Rs.985 (CMP-993) – Suggest hold

· Tata Chemicals at Rs.773 (CMP-780) – Suggest to hold

Let me now turn to your last part of the question about what to buy in the current market conditions. For Tuesday I am suggesting to you two stocks and remember that both these stocks are in the same space of sugar. So it is two stocks but the story is the same. Here is the big story that I see happening on sugar.

While sugar output and prices are one side of the story, I am suggesting two stocks to you from an ethanol perspective, which would make it a medium-term call. Ethanol blending has gone up from 1% to 6% in the last few years and is targeted to touch 20% by 2025. That is likely to be a $10 billion-opportunity for sugar industry over next few years. Here it is.

· You can look to buy Balrampur Chini at an approximate price range of Rs.205-210 for an upside target of Rs.260 over the next 2-3 months.

· Similarly, on the same lines, you can buy EID Parry at a price range of Rs.335-340 for an upside target of Rs.390 over the next 2-3 months.

Let me give you one risk factor before you jump into these trading positions. We have seen from our experience in the past that ethanol blending is predominantly sugar dependent and sugar is a sensitive product. Hence any impact on the local demand/supply conditions could possibly invite regulatory intervention occasionally. Traders must be wary of this risk.