The Nifty today settled down almost 0.5 percent at 12,690.80. Can this be exhaustion after an 8-day rally or sentiment which says buy on rumour sell on news? Market Expert Sanjiv Bhasin gives his take on this.    

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Bhasin said that he sees this situation as a combination of both. He had already indicated that the banking stocks have been overbought and there was some correction due in this space. Calling this a routine correction, he said that this happens after such a good run. 

He also lauded the package announced by Finance Minister Nirmala Sitharaman. He said that the market failed to understand it and it would be back and running in few days. He however said that the rally would be stock specific as the index has had a long run. Index will be range bound with banks seeing more pressure, he added.  

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He said that the package would kickstart consumption and Dabur and Voltas will be the biggest beneficiaries.  

On his previous updates, Bhasin said that targets have been hit in DLF and ITC. Tata Motors and Godrej Properties have also hit their targets.  

He gave two buy calls today.  

Top Stocks to Buy:  REC          

The technical analyst said that the power sector is being rerated and companies like Power Finance Corporation (PFC) and Rural Electrification Corporation Limited (REC) will be rerated. He recommended REC as his top buy. The stock should be bought at current levels of Rs 116. He puts the stop loss at Rs 114 while the target price at Rs 125. 

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Top Stocks to Buy:  TVS Motors        

Another stock recommended by him was TVS Motors. He said that the announcements made today will be beneficial for the automobile sector. This stock is currently trading around Rs 477. He said that it should be bought at existing levels. He puts the stop loss at Rs 470 while the target price at Rs 500.