Bull's Eye: 12 intraday picks for smart gains

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CNBC-TV18 brings you a brand new week of Bull's Eye. It's the 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, Ashish Kapur, CEO of Investshoppe, Vishal Kshatriya, Edelweiss and Aunali Rupani, Director of Arm Research battle it out for top honours.

Below their top stock picks and analysis:

Ashish Kapur, CEO of Investshoppe

VIP Industries as a stock has been resilient in this downfall. The reason is basically the company's performance has been very good, outstanding performance, 83% increase in the net profit in the last quarterly results and going ahead we expect this growth momentum to continue. The management has guided around 50% growth in turnover and profit for this year. We expect this to be achieved for the very near-term. For day trade we have a target of around Rs 930 with a stop loss at Rs 810.

DLF got battered badly in the recent fall. The reason being that real estate as a sector is under huge amount of pressure due to rising interest rates and because of expected slowdown in real estate demand. Also these companies have reported fairly bad disappointing numbers therefore active investors or short-term traders can buy this stock with a target of Rs 205 and stop loss at Rs 176.

Tata Motors has seen a lot of selling pressure in the last few weeks mainly on account of huge international exposure. 59% of its exposure comes from JLR takeover which it did 3 years back. We expect the stock to pullback on the back of short covering. So for the day we have a target of Rs 765 and stop loss at Rs 685.

Tata Steel is leader in steel manufacturing in India as well as it has operations in various countries abroad. The stock was quite resilient in the initial fall. However, last week because of fall in commodity prices and because of general pressure across the board in the market this stock has fallen significantly in the last 2 trading sessions. For the very near term we have a target of Rs 490 with a stop loss at Rs 448.

 

Vishal Kshatriya, Edelweiss

I am long on LIC Housing Finance with target price of Rs 218 and stop loss of 200.

I am long on JP Associates with target price of Rs 63.5 and stop loss of Rs 56.5.

I am long on JSW Steel with target price of Rs 715 and stop loss of Rs 635.

I am short on Dr Reddys with target price of Rs 1320 and stop loss of Rs 1455.

 

Aunali Rupani, Director of Arm Research

Deepak Fertilizers is the cheapest private sector fertilizers company in India. FY12 estimated EPS is going to be Rs 28 per share that means the stock is trading at just 6 PE. My target for the day is Rs 166.50.

GNCF is the cheapest public sector fertilizer company. Now if I compare GNCF with GSFC, three years back the price difference was just Rs 30 but today the price difference is close to Rs 280. If I compare the PE, GNFC is trading at just 4 PE where GSFC is trading at more than 10 PE. Dividend yield for GNFC is more than 4% I think this stock is going to get re-rated from here my target for the day Rs 97.

I believe education sector is a recession proof industry. Now Navneet has delivered close to Rs 61 crore of net profit in Q1 and we are expecting that it will deliver close to Rs 100 crore in FY12. Navneet has close to Rs 350 crore of reserves and they would have close to Rs 250 crore of cash in the books that is Rs 20 per share that means that their entire business is available for Rs 40. I think it's a value buy, target for the day Rs 64.

In Aptech there is a buzz in the market that there might be a change in the management or a joint venture. The stock has rallied very hard in the last 2 months, almost 50%, my target for the day Rs 126.

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