Short BGR Energy, Shipping Corp: Ashish Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.

My first recommendation for the day is a short position BGR Energy with a target of Rs 261 and a stop loss at Rs 283. This is a position which I am carrying from yesterday and basically we are maintaining our bearish view on BGR Energy on account of very poor results and we feel going ahead this stock will continue to face selling pressure due to mounting pressure on margins due to cancellation or postponements of various orders which the company had. Management itself has guided for a lower revenue and profitability growth going forward. My second recommendation for the day is a short position on Shipping Corporation of India with a target of Rs 51.5 and a stop loss at Rs 56.5. Shipping Corporation of India reported dismal performance in the last quarter. Going forward we expect this negative performance to continue for few more quarters atleast. The charter rates have gone down and are likely to remain under pressure. The company is loosing money both on the liner segment as well as the bulk cargo segment. My third recommendation for the day is a long position on Welspun India with a target of Rs 59 and a stop loss at Rs 52.8. The company which is a leading manufacturer of home textiles has reported stellar numbers in its last quarter results which came out yesterday. The turnover increased and the net profit doubled, this was much more than what the market had anticipated. Given this stellar performance we expect the stock to remain firm for sometime. My final recommendation for the day is a long position on Shashun Pharma with a target of Rs 137 and a stop loss at Rs 119. This manufacturer of active pharmaceutical ingredients has a very impressive order book and also a very strong pipeline in the CRAM space. Going forward we expect good performance to continue from this company. Also, this is one pharma company still available at a very cheap valuation.