What are best stocks to buy and sell on May 06th for good profits?
Answer
Answer
With the latest downgrade of banks by Bank of America (BOFA), banking stocks are likely to be under pressure. In addition, the steep excise duty hike on petrol and diesel may be absorbed by OMCs and that could be a big negative for OMC stocks.
· Traders must be cautious on private banks like Axis Bank and IndusInd Bank. Traders look to sell for downside targets of Rs.350 and Rs.370 respectively.
· The spike in excise duty on petrol and diesel is to be absorbed by OMCs. Traders look to sell IOCL and BPCL for downside targets of Rs.60 and Rs.300 respectively.
· On the long side, if you are a slightly medium term investor, look to accumulate UPL, on debt reduction plans, for upside targets of Rs.430.
While global cues may result in a flat to positive opening for the Nifty and Sensex, banks and OMCs are likely to exert pressure on the markets.