Buy Cairn; sell Arvind, Allahabad Bank

Cairn (Buy above Rs 281.80, target of Rs 290)

ONGC has finally given the no objection certificate for the deal between Cairn and Vedanta. Delay in the deal had not only affected investor sentiment in Cairn, but was also affecting it operationally. This clearance can help push the stock higher.

Allahabad Bank (Sell below Rs 160, target of Rs 155)

In a market that was bullish throughout the day, Allahabad Bank has closed near the low of the day. The stock shows lot of weakness and any downward correction can bring it down substantially.

Arvind (Sell below Rs 98.50, target of Rs 95)

Arvind has touched a new high on low volume. With increasing cotton prices in the international market due to a drought in Texas and floods in Pakistan, the company will face margin pressures. The risk reward has moved in favour of the short side in the company.

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