Buy Dishman Pharma, MMTC, STC: Cunha

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

Buy Dishman Pharma. Dishman Pharma is back on the recovery path and has now started to produce better numbers given that its Contract Research and Manufacturing Services (CRAMS) business is now starting to look up as well as the recent commissioning of its new high potency unit. This has started generating profits and we should see the benefits in the next quarter. It will also benefit from the sell of its Special Economic Zone (SEZ) land which will be used to retire high-cost debt. This is expected to be in the region of Rs 100 crore.

Buy Minerals and Metals Trading Corporation (MMTC) with a target price of Rs 328. Recently MMTC’s Follow-on Public Offer (FPO) has been called off or postponed and that has seen fresh buying in the stock, specially people who were short covering up the stock and we could see the stock move up with the trend to hit its target price of Rs 328.

Buy State Trading Corporation (STC) with a target price of Rs 222. STC also has moved up on the back of MMTC news and this has moved up with volumes. I see that the trend could continue and we could see it hitting its target price of Rs 222.

Sell Housing Development and Infrastructure (HDIL). HDIL has recently seen significant fall in its price after the promoter sold off some shares and triggered off some rumours regarding the financial position of the company. The stock recovered thereafter, however in the last few days we have seen considerable selling and it looks weak on the chart so you could see the stock going down further to hit its target price of Rs 65.75.