In CNBC-TV18's popular show Bull's Eye, Saurabh Mittal of Swadeshi Credits shares trading strategy of the day.
Buy Dabur India with a target of Rs 138 and a stop loss of Rs 132. Dabur is one of the premier stocks in the Fast Moving Consumer Goods (FMCG) sector. It has been steadily performing well. The profits were up more than 22 percent last quarter and the stock has done well even in a down market yesterday. So I expect some more strength in this stock and that my first recommendation.
Buy Tata Global Beverages with a target of Rs 150 and a stop loss of Rs 142. Tata Global has also delivered decent results and it has got overseas growth to strengthen its bottom-line and the stock has steadily come down from the Rs 160 levels at the current levels. I think it is a great stock and even for the medium to long-term I think Tata Global Beverages is a good buy.
Buy Dish TV with a target of Rs 77 and a stop loss of Rs 73. Dish TV did not deliver very good results. It was in losses, but I think with the digitisation going on all over the country all the cable stocks are going to do well and Dish TV being one of the premier stocks in this sector we have seen a lot of consolidation and a lot of uptick in these stocks and I think Dish TV is another good pick for the medium to long-term. Given market conditions if there is a little bounce in the market you will see this stock perform very well.
Short Opto Circuits with a target of Rs 70 and a stop loss of Rs 75. Opto Circuits has been in trouble. There are lot of corporate governance issues and the stock has come down from over Rs 120 and it continues to slide. It saw a big slide yesterday as well. So it is like trying to catch a falling knife. I do not think there is any bottom here. It is good to stay short in the stock until something positive comes out and we might see some more downside on this stock as well.