Bull's Eye: Short Kingfisher, ICICI Bank; buys Welspun Corp

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Bull's Eye: Short Kingfisher, ICICI Bank; buys Welspun Corp

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

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Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well.

This week, Rajesh Agarwal of Eastern Financiers, Aashish Tater of Fort Share Broking and Rakesh Gandhi of LKP battle it out for top honoursBelow their top stock picks and analysis:

Rajesh Agarwal of Eastern Financiers

Welspun Corp can be bought with a stop loss of Rs 68 and a target of Rs 73. We believe that once the commodity cycle is stabilized new orders will start coming in especially from the oil and gas sector where huge discoveries have been made. On the valuation parameters if you look it's trading at an extremely attractive valuation of PE of less than 5 and price to book value of less than 0.5. Even their overseas operations both in US and Saudi Arabia are doing very well.

Natco Pharma can be bought with a stop loss of Rs 244 and a target of Rs 256. They have recently entered into an agreement with a Swiss company which would help them to make a large presence in Oncology. Their QIP have recently been closed ranged around Rs 67.5 crore in which Mr. Dilip Shanghvi, Chairman of Sun pharma has also participated. I think this company can do well in the times to come.

Bhushan Steel is doing well. On the revenues side we expect this company to report a jump in turnover of around 40% but the problem remains with margins. We believe there will be huge margin pressure and the bottom line would be affected. Secondly, with huge debt of around Rs 18600 crore it would be a real pressure on the balance sheet side even on the bottom line I think the EPS is going to be affected by a whole slot. Hence, we recommend a sell on this. One can sell with a stop loss of Rs 315 and a target of Rs 290.

Gravita is a pure momentum play. We have seen the stock price cracking down from Rs 560 to around Rs 350 levels and that it has started moving up with increased volumes. Hence we recommend a buy for intraday basis with a stop loss of Rs 365 and a target of Rs 393.