Buy IFCI, M&M Fin, Rel Capital: Tater

In CNBC-TV18's popular show Bull's Eye, Aashish Tater of FortuneWizard.com shares trading strategy of the day.

I am going long on IFCI for a target of Rs 36 with a closing stop of Rs 33. We have an eventual target of Rs 38.50 on the stock. The announcement on banking licence would at least see one PSU getting through the banking licence and we feel that IFCI would be merged with that particular company and this could be a likely positive for IFCI – does there will be lot of positive momentum in today’s trade.

M&M Financial is a strong contender for getting the banking licence and they would be applying and seeing the management commentary we feel they are extremely bullish on this positive development. We have a target of Rs 220 on the stock with a closing stop of around Rs 197.

Reliance Capital would definitely see trading momentum in today’s trade but we have not actually factored in that this is a strong contender for banking licence but however there would be momentum on NBFCs and companies where there is likely possibility of applying for banking licences, this particular company would also be in focus. Only from technical perspective go long for a target of Rs 430 and Rs 444 and with a closing stop of Rs 402.

SREI Infrastructure is another stock which will see momentum given that they want to apply from banking licence but even we have ruled out the possibility of the company getting through the banking licence in the initial stage. We feel the stock because of the applications would definitely see some positive momentum and we have a target of Rs 42 eventually on the stock. However, for intraday perspective remain long on this particular stock for a target of close to Rs 38 with a closing stop of around Rs 35.50.