Buy Vikas WSP, Jain Irrigation, 20 Microns: Agarwal

In CNBC-TV18's popular show Bull's Eye, Rajesh Agarwal, Eastern Financiers shares trading strategy of the day.

Buy Vikas WSP with a target of Rs 70 and stop loss of Rs 62. This company is the largest player in Guar gum and Guar gum derivatives and Guar gum being used in shale gas extraction, the prospects of companies like Vikas WSP has changed a lot. US alone would need around 3 lakh metric tonnes of Guar gum in this year and with this the demand for Guar gum derivatives across the globe has gone up by anything. This is going to benefit Vikas WSP in the long run. Buy Jain Irrigation with a target of 88 and stop loss of Rs 79. This is the largest player in domestic market in micro irrigation. Apart from irrigation this company is into PVC pipes, PVC sheets and vegetable dehydration and fruit processing. They have recently formed an NBFC to diversify. Planning for reduction in debt and going forward after the kharif season we believe that the subsidy is going to be reimbursed by the government which is going to take care of the high debt the company has. Buy 20 Microns with a target of Rs 119 and stop loss of Rs 110. This company is one of the largest producers of white minerals which is used in paint varnition, paper industry. This company has a portfolio of around 400 mineral products with 70 international customers in 53 countries. Aggregate manufacturing capacity is around 217400 mt per year with 9 plants located across India. Buy ONGC with a target of Rs 285 and stop loss of Rs 274. The company has given excellent results on the weekend, strong set of numbers. PAT went up by around 48.4% on a top line growth of 24% and despite financial costs going up to Rs 29 crore from Rs 4 crore, these numbers are reported and the best part is even the realization of crude was lower than the last quarter. But still the numbers have been so strong. Disclosure: I have a holding in 20 Microns. Stocks discussed may have been recommended to clients.