What are the stocks that I can buy on 28 May on F&O expiry day from a 3-4 month perspective? I am willing to hold that long?
Answer
Answer
The 1000 point rally in the Sensex on Wednesday was driven by aggressive short covering in banks and financials. F&O rollovers and the US-China standoff could be the challenges for the global markets on F&O expiry day. Look at the following stocks for investing.
· Buy Indian Oil (IOCL) at Rs.77 with targets of Rs.110 in 3-4 months. Improved oil prices will result in improved GRMs and also better inventory valuations.
· Traders can buy SAIL at Rs.29 with target of Rs.43 in one quarter. The big stimulus in Japan, EU and China could lead to a sharp demand revival and help SAIL’s export push.
The rollovers to the next month would hold the key and it remains to be seen if longs roll over. Some short covering in banks and autos are likely; but not too much.