Buy Dabur India, Suven Life, Timken India: Jain

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

Long on Dabur India. Dabur is a fast moving consumer goods (FMCG) company doing extremely well and it has a very strong product profile. In quite number of products it has leadership position. The stock has been doing pretty well. For the last four-five months stock has been consistently trading above short-term 20 and 50 DMA. What we have seen that on Friday stock was almost close at a new 52 week high. Kind of positive traction that has seen in the stock and the stock has been doing well. Its international subsidiaries are also doing well.
Long on Suven Life. This stock having gone under correction is again moving up northwards. What we have seen is that fundamentally the performance of the company has improved tremendously in last two quarters. Results have been very good for Q2 and Q3 and we believe that the next two-three quarter result should also be pretty well for the company. It is a bio-pharmaceutical company with stronger presence in drug discovery mechanism and bulk drug compound. Taking these factors into considering we feel the positive momentum which was seen on Friday should carry over in Monday’s trading.
Long on Timken India. What we have seen is that stock move very smartly. The stock moved by almost 15-16 percent in Friday’s trading and even the volumes were almost 15 times the regular volumes and it is a very strong delisting candidate with US parent company having more than 80 percent stake. With the kind of movement stock has shown and not to forget that it is a very good dividend paying company, we believe that positive momentum for this stock should continue on Monday’s trading.
Sell Sintex Industries. We have seen that the stock move from levels closer to Rs 51-52 to levels closer to Rs 60 on back of some kind of pullback and short covering. Again the stock is drifting southwards and there have been issues with respect to very high debt levels of the company. Some recent actions of the company smell of some poor corporate governance.