Buy Mahindra Satyam, Hindalco: Prakash Diwan

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

The first pick of the day is keeping momentum in the IT pack in mind I have selected Mahindra Satyam. We have seen the correlation between Satyam and Tech Mahindra has been much favourable for this particular counter as compared to Tech Mahindra so Satyam with a target price of Rs 88.90 and stoploss of Rs 80.90 is the first pick. The second pick is again keeping in mind the momentum you have seen in the metal side that is Hindalco. I believe Hindalco could probably come up with some pleasant surprise once the metal rebound. I would like to give it a target price of Rs 120.90 with a stoploss of Rs 114.90. The third stock is Dr Reddys Laboratories. We have seen the pharma pack behave very favourably in the last couple of sessions but given the fact that the US government has finally approved the Mexican unit of this particular company and that means a big positive for sales in the US. We believe Dr Reddy’s could see some sort of a rally further and we put a target price of Rs 1669 and a stop loss of Rs 1569 for this counter. While everything seems very positive it is time to exercise a bit of caution and I have a short call as well, I short Educomp. We have seen some sort of a positive build up as well in the last few sessions but somewhere Educomp seems to be losing ground on the basis of its fundamentals going forward. I would like to short Educomp with a target price of Rs 148 and a stop loss at Rs 159.