Buy Marico, Educomp, Mahindra Satyam: Diwan

In CNBC-TV18's popular show Bull's Eye, Prakash Diwan of Prakash Diwan's Wealth Circle shares trading strategy of the day.

Buy Marico. It is a stock that’s not yet that kind of flavor as much as the other peers have. Hindustan Unilever, Dabur, ITC, all of them have flared up but Marico is yet to join the bandwagon. But with the results in the offing it could surprise the street and come up with very spectacular numbers thanks to the fact that Copra which is its key raw material has been very soft and it has been maintaining its leadership position in edible oil segment as well. So Marico with a target price of Rs 199.95 and a stop loss of Rs 188.85. Buy Educomp. The reason I am looking at going long here is Educomp has seen some short covering start off in a significant way in the last couple of sessions and I believe given the fact that the management is able to restructure itself, regain some confidence, sure of some finances to the peers, some of the dues could auger well for Educomp and generally this is a season where cyclically they tend to have much better realizations as well. So I have a target price of Rs 166.60 and stop loss of 156.60 on it. Buy Mahindra Satyam. We have seen some spectacular numbers come from some of these tier 2 companies and Satyam is on the same route. Look at the kind of margins that it has been able to clock even in a competitive environment like this. The kind of growth has definitely been beyond expectations and the stock is likely to pleasantly surprise the market once it opens up. So I have target of Rs 86.90 and stop loss of Rs 80.90 on the stock. Buy Jet Airways. It is a repeat from yesterday’s lot. It just missed my target by about Rs 2 in the previous session but hopefully with numbers coming out on Friday it should do much better. I expect good earnings from this stock. I have a target of Rs 381.90 and stop loss of Rs 361.90.