Buy REC, IOC, LIC Housing Fin: Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.

Long on Rural Electrification Corporation (REC) with a target of Rs 225 and a stop loss at Rs 210. Power sector has been bearing the brunt of delay in government policy over the last couple of years. Capacity additions have been slow in coming about. REC being a leader in the lending to SEBs and other players in the power sector has naturally come off from the highs and the stock has been under performing for quite some time.
Long on IOC with a target of Rs 315 and a stop loss at Rs 294. Oil marketing companies are still under owned. We feel that government finally has put in place a definite timetable and mechanism to start easing the subsidy burden on these companies. There have been number revisions on both - petrol and diesel prices over the last couple of months including the ones which was done on Friday night. So we feel that given all this, the fundamentals of this company do suggest that there is plenty of room on the upside.
Long on LIC Housing Finance with a target of Rs 250 and a stop loss at Rs 232. Housing finance is still a sector which is doing very well despite the overall slowdown in their economic growth. Moreover, the Budget has contained definite provisions to give further growth to this sector. There has been increase in the amount of interest deduction allowed and also there has been increase in the amount of funds dedicated to developed housing.
Sell Adani Enterprises with a target of Rs 198 and a stop loss of Rs 216. This sell recommendation is more of a balancing strategy because the other three are non recommendations. Also, Adani has major interest in the infrastructure and trading spaces. It is clear that infrastructure space is not going to revive very soon.