The current rally in the market may go on with the pullback even extending to "slightly higher levels", Mitessh Thakkar of earningwaves.com told CNBC-TV18. He believes the overall structure of the market does not appear to be positive from a medium-term perspective. "I would not be aggressive in going long,” Thakkar said.
He has six 'buy' recommendations now: Zee Entertainment, Tech Mahindra, Tata Motors, Tata Power, Indian Hotels and HCL Tech.
Thakkar, who has been recommending Zee Entertainment in the recent past, said the media stock has given a good pullback now close to the support pivot of Rs 326. He recommends buying Zee for a target of Rs 350 with a stop loss at around Rs 324.
Correction in Nifty a good opportunity to buy select stocks; bullish on hospitality space: HSBC Global
"HCL Technologies is seeing a good follow-through after a pullback. That's a 'buy' now for a target of around Rs 1,175-1,180 with a stop loss below Rs 1,140.
The decline in Tata Motors would be a good entry opportunity, he said.
He suggests investors to buy the stock whenever it returns to the Rs 460-435 range. His first target price for Tata Motors is Rs 540, but he expects it to go to Rs 610 and even 650-plus levels eventually. "Keep a stop loss below Rs 420-415," he said.
He sees a buying opportunity in Tata Power. "The stock has medium-term support close to Rs 200-190 levels. Any declines to Rs 210-200 levels should be a good buying opportunity... The stock should not only eventually hit Rs 260 again but also head towards Rs 325-350 levels... Keep a stop loss below Rs 180,” he said.
Thakkar suggests buying Indian Hotels shares on declines close to Rs 170-165 levels for a target of Rs 230 with a stop loss below Rs 155.
For the full interview, watch the accompanying video.
Catch all market updates here.