Buy Bajaj Hind, United Breweries, Jaypee Infra: SP Tulsian

In CNBC-TV18's popular show Bull's Eye, SP Tulsian, sptulsian.com shares trading strategy of the day.

My first stock for the day is a buy call on Bajaj Hindusthan with a day target of Rs 24 and stop loss of Rs 22.20. It is expected that government is likely to partially decontrol the sugar sector, which will predominantly be scrapping off the 10 percent levy quota, which is now stipulated. If that happens, it will give a differential or additional realisation of about Rs 1.25 paisa per kilogram on the entire quantity of the sugar produced by all sugar mills. Balrampur Chini being the largest sugar mill in the country have seen a good run up but Bajaj Hindusthan, which is also in neck-to-neck with Balrampur Chini in terms of the production has not risen so much. Upside potential can be expected in the stock and hence a buy call.
Second stock for the day is a buy call on United Breweries with a day target of Rs 710 and stop loss of Rs 670. After management having clarified that the Kingfisher brand is lying with the company and no promoter shares are significantly pledged except a small portion of UB group, this share is seeing renewed buying interest because the company is the largest beer maker in the country with 55 percent market share with sell of Rs 133 million cases in FY12. This bullish trend is likely to continue on the stock and hence a buy call.
Third stock for the day is a buy call on Indiabulls Financial Services with a day target of Rs 293 and a stop loss of Rs 275. This non-banking finance company (NBFC) is ruling at a very low valuation in single digit and stock having corrected in this last to one week from Rs 325 to as low as Rs 280 is likely to see the value-buying emerging again and the stock can move in the near-term past Rs 300 levels and hence a buy call for the day.
Last call for the day is a buy call on Jaypee Infratech with a day target of Rs 47.50 and a stop loss of Rs 44. This real estate company with having Yamuna Expressway of 165 kilometer which is operational with a good chunk of land under development has seen a big corrections having taken place because of the dull numbers posted by the company for Q3 because of the higher interest burden, which has been resulted due to the charging of the capital expenditure interest on the Yamuna Expressway to the profit & loss (P&L) account but now stock seems to have hit the 52 week low in the recent past and since then it has been seeing the value buying emerging again. This trend is likely to continue and hence a buy call.