Top trading ideas: Punj Lloyd, CESC, Yes Bank

In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com, SP Tulsian of sptulsian.com and Amit Trivedi of investworks.in give their top picks for the day.

Sudarshan Sukhani, s2analytics.com Punj Lloyd: I would suggest, using the current momentum on the upside, to go and buy the stock. Consider buying Punj Lloyd, the stock has seen a deep decline, a bear market and then finally ended up building a base. We have already seen a base breakout which tells us that a reversal is in the offing as the trend has changed to up. Recently the stock was going through a mild correction. That correction was in the shape of a flag. That flag has broken on the upside on Tuesday, which telling us higher levels are coming. So keep a stop loss but I would expect this trade to workout. Union Bank of India: Banks have done very well and it is quite possible that PSU banks have much more steam ahead before this sector faces resistance. So look at Union Bank and consider buying it. Buy Union Bank, the stock has found repeated support, it is now bouncing off that support and moving towards an initial target of Rs 245. Just keep a stop loss below the support levels but I would assume that like other PSU banks this support will hold and the stock should move higher. SP Tulsian, sptulsian.com CESC: All the power generation companies have come back on the focus. CERC is allowed the new projects to go for rate hikes because each company is facing the problem on account of the increase in feedback cost or increase in the other taxes or may be currency devaluation and all sort of things. One stock which comes to my mind which looks a good buy is CESC at around Rs 290 which is already an established company ruling at a P/E multiple of less that 7.
Apart from that this company is setting up two power projects of 500 megawatts each at Haldia and Chandrapur and both are going to get commissioned in next six months or so. So the market is now expecting that probably there also this company may see some kind of price hike in respect to power generations made from these two plants. Apart from the existing operations which are giving an EPS of close to about Rs 45 on an annualized basis is seen quite positive. So the stock can be bought for a price target of about Rs 315 in next 10 days or so. Amit Trivedi, investworks.in
Given the way markets have rallied around 2 percent from Monday’s close we have two recommendations on the long side.
First is Yes Bank which can be bought at around Rs 464-465 levels for a target of around Rs 478. Stop loss can be placed at around Rs 458 levels.
Second is Mahindra & Mahindra (M&M) which can be bought at Rs 840 for a target of around Rs 870. Stop loss can be placed at Rs 825 in this stock.