Buy Titan Ind, Karnataka Bank, LIC Hsg Fin: Cunha

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha, ITI Wealth Management shares trading strategy of the day.

Buy Titan Industries. Titan Industries has already corrected almost 25 percent from its peak on the back of some very negative provisions on the Budget on import of gold. However, this seems to have got compensated by the fall in global gold prices as well as the appreciation of the rupee. I believe that this should not impact the earnings of Titan Industries so much and the negatives have already been factored into. I have seen that there is some interested buying happening in the stock and we could see the stock move up in its continued momentum to take it to its target price of Rs 235.

Buy Karnataka Bank. Karnataka Bank has been moving up in the past two-three days on increased volumes. This is positive for the stock because it has got the benefits of lower interest rates that may come up and on a fundamental basis, the stock trades at about 0.7 times its FY14 book value. So, it also offers some value for long-term investors. I believe it is some amount of short covering that is happening. We could see the stock continue its upward momentum and could hit its target price of Rs 149.

Buy LIC Housing Finance. LIC Housing Finance has recently started moving up on increased volumes and like all other interest rate sensitives, corrected yesterday upwards on the back of the possibility that Reserve Bank of India (RBI) might drop the cash reserve ratio (CRR) or drop interest rates further. I believe this short covering may continue and we could see LIC Housing Finance move further up in line with other interest rate sensitives to hit its target price of Rs 252.

Buy Sun TV Network. It is one of the beneficiaries of digitization and in the medium-term should benefit significantly from the digitization process that is underway. I also believe that Sun TV Network has been moving up on good volumes and has reached a level where from now onwards we could see it move further in line with the buying momentum and that could take it to its target price of Rs 460.