Bull's Eye: Short Kingfisher, ICICI Bank; buys Welspun Corp

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well.
This week, Rajesh Agarwal of Eastern Financiers, Aashish Tater of Fort Share Broking and Rakesh Gandhi of LKP battle it out for top honoursBelow their top stock picks and analysis: Rajesh Agarwal of Eastern Financiers Welspun Corp can be bought with a stop loss of Rs 68 and a target of Rs 73. We believe that once the commodity cycle is stabilized new orders will start coming in especially from the oil and gas sector where huge discoveries have been made. On the valuation parameters if you look it's trading at an extremely attractive valuation of PE of less than 5 and price to book value of less than 0.5. Even their overseas operations both in US and Saudi Arabia are doing very well. Natco Pharma can be bought with a stop loss of Rs 244 and a target of Rs 256. They have recently entered into an agreement with a Swiss company which would help them to make a large presence in Oncology. Their QIP have recently been closed ranged around Rs 67.5 crore in which Mr. Dilip Shanghvi, Chairman of Sun pharma has also participated. I think this company can do well in the times to come. Bhushan Steel is doing well. On the revenues side we expect this company to report a jump in turnover of around 40% but the problem remains with margins. We believe there will be huge margin pressure and the bottom line would be affected. Secondly, with huge debt of around Rs 18600 crore it would be a real pressure on the balance sheet side even on the bottom line I think the EPS is going to be affected by a whole slot. Hence, we recommend a sell on this. One can sell with a stop loss of Rs 315 and a target of Rs 290. Gravita is a pure momentum play. We have seen the stock price cracking down from Rs 560 to around Rs 350 levels and that it has started moving up with increased volumes. Hence we recommend a buy for intraday basis with a stop loss of Rs 365 and a target of Rs 393.
_PAGEBREAK_ Aashish Tater of Fort Share Broking
One can short Kingfisher Airlines. It is sitting on a huge debt and before a solid debt rigid plan actually happens the stock would again go to that Rs 17-18 mark in days to come. I am shorting for an intraday target of close to Rs 22.30.
One can short Tata Motors. It's a pure technical call. Yesterday Tata Motors actually trended down and we feel there would be much lower levels from current levels on this stock. I am shorting for an intraday target of close to Rs 171.85.
One can sell Bata India. Both fundamentally and technically Bata India is one stock which can be shorted from a medium term perspective. However, because of low liquidity from F&O perspective this stock should not be shorted in huge quantum but longer targets. So I am suggesting a short somewhere around Rs 580-590 odd mark from a medium term perspective. We feel the stock could easily go and test Rs 480-510 levels in no time.
One can go long on McLeod Russel. Yesterday there was a rumor on Loop telecom and which got seen unnecessary punishment on McLeod Russel. It has got nothing to do with Loop. So this stock would definitely see a bounce because the clarity has actually happened, so I am playing for an intraday target of Rs 215 on this stock.
_PAGEBREAK_ Rakesh Gandhi of LKP Jubilant Foodworks has broken critical level and also broke a rising trend line. For today my target for the stock is Rs 726 with a stop loss of Rs 758.5. Bata has been consolidating since last 3-4 months and now has broken on the lower side of the consolidation. The stock has further downside and can be sold for a target of Rs 560 with a stop loss of Rs 586. ICICI Bank has bounced very sharply from the lows made before one week and has once again broken the same low and made a new low for the year 2011. The stock can see further lower levels and can be sold for today for a target of Rs 685 with a stop loss of Rs 718. REC has formed a double top kind of formation and has broken yesterday very sharply. It has further downward potential and can be sold for today for a target of Rs 162 and a stop loss of Rs 174.5.