Is it right time to buy ITC, DLF, SBI? Here’s what Milan Vaishnav has to say

 Market participants should not forget to put strict stop loss while chasing the momentum as the benchmark NSE Nifty index is set to rally for the sixth straight quarter. The benchmark equity index BSE Sensex jumped over 250 points in early trade to scale the 58,000-level for the first time on September 3, led by gains in index majors Reliance Industries, Kotak Bank and ICICI Bank amid a positive trend in global markets and sustained foreign fund inflows. Likewise, the broader NSE Nifty too crossed the 17,300-mark in the opening session. In an interaction with Money9.com, Milan Vaishnav of Gemstone Equity Research and Advisory said that the Indian equity market has been showing a lot of strength at present. However, it is in the overbought zone at the same time. "We may see some more incremental highs. However, don't forget to put strict stop loss while chasing the momentum," he said adding the Bank Nifty may show some outperformance from here onwards. He further advised market participants to zero in on select banks, pharmaceuticals and stocks from the FMCG sector that has not moved with the market. For stock-specific investors, he advised to buy SBI with a target price of Rs 450 and stop loss at Rs 422. He is also bullish on real estate major DLF with a target price of Rs 353. "One should keep a strict stop loss at Rs 329," Vaishnav said. Commenting on the sector, he added that the real estate index has given a multimonth breakout last month. "Traders can expect the continuation of the rally in the real estate sector," he said. From the FMCG space, Milan recommended ITC with a target price of Rs 216. "ITC is enjoying some weight in the FMCG and consumption space. It is moving in the sideways triangle chart. RSI is slowly inching higher at this point in time. I see catch-up rally in the stock," he added.