Sell Tata Steel, Canara Bank, Dena Bank: Pankaj Jain

In CNBC-TV18's popular show Bull's Eye, Pankaj Jain of Sunteck Wealthmax shares trading strategy of the day.

Short Tata Steel. Tata steel was showing some kind of laziness, some kind of sluggishness in today’s trade. Metal sector is one sector which has been solid underperformer for the past 3-4 months, and it is expected that this sector would continue to be an underperforming sector at least for next 3-4 months, and one of the major reason has been the obvious slowdown in China Sell Canara Bank. Canara Bank in the last 2-3 years used to be in the league of top PSU banks. In league of State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB). Somehow in the last 2 years it has lost that space and now it is in the second league and the kind of quarterly results we have seen in last 2-3 quarters, they have not been up to mark. Nothing very exciting and taking that into consideration, that it was showing signs of weakness in today’s market and it has been one of the weakest stocks, and is trading well below moving averages. We expect that the underperformance of Canara Bank which was seen today could continue. Short Dena Bank. Dena Bank, Vijaya Bank these 2-3 midcap PSU banks - the charts are very weakish and the kind of results we have seen from these midcap PSU banks, nothing very exciting. These midcap PSU banks could be a struggling space for at least for some time to come. Long Mahindra Satyam. One of the reasons has been the kind of outperformance, the Q1 results have been outstanding, PATat around Rs 350 crore which was much above the market expectations, even the margins were good. On most of the parameters, results seem to be good and the stock could react to that. What we have seen in last about 25-30 trading sessions that the stock has been sort of accumulating, consolidating and it has floating well above its crucial 20 DMA, if you see near time performance. So taking that into consideration, we have gone long on Mahindra Satyam.