Buy Reliance Capital, SAIL, sell Dena Bank: Mittal

In CNBC-TV18's popular show Bull's Eye, Saurabh Mittal, Swadeshi Credits shares trading strategy of the day.

Buy Reliance Capital with a target of Rs 320 and a stop-loss of Rs 305. Reliance Capital has shown weakness in yesterday’s trade given that the overall market was down. I think it has been oversold. Given that the Anil Dhirubhai Ambani Group (ADAG) and Mukesh Dhirubhai Ambani Group (MDAG) are going to get together for some joint venture (JV) in the Reliance Communications, it might help Reliance Capital also in the long-term. So, I think it might just rebound today.

Buy on Steel Authority of India Ltd (SAIL) with a target of Rs 64 and a stop loss of Rs 60.50. SAIL showed some strength yesterday in a down-market and I think there is some buying in this stock and it should further strengthen if the market rebounds from here or there is a relief rally around the corner.

Short Dena Bank with a target of Rs 88 and a stop loss of Rs 92. Given the market conditions, I am going in for a hedge portfolio and the banking sector looks particularly weak in this down-market. so, I have gone short on Dena Bank today.

Short Opto Circuits with a target of Rs 55 and a stop loss of Rs 60. Opto Circuits is like falling knife. It has tremendous downside and looks like the stock has broken all kinds of support levels and there is obviously some trouble brewing in the company. So, this is one stock that should be shorted and stay shorted till it shows any kind of recovery.