Bull's Eye: Short Ambuja Cem; Buy Lanco Infra, HDIL, IGL

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well. This week, Rajesh Agarwal, Eastern Financiers, Pankaj Jain, Sunteck Wealthmax and Parag Doctor, Keynote Capital battle it out for top honours. Rajesh Agarwal, Eastern Financiers Sell Ambuja Cements with stop loss of Rs 177 and a target of Rs 166. With yesterday’s CCI order asking the companies to pay penalty for about 50% of their profits, we think there would be pressure on the entire cement pack as such and India cement being one of them. Although we do believe that these companies are going to challenge the order in the Supreme Court but for intraday - we think one can have initiate a sell position with a stop loss of Rs 177 and a target of Rs 166. Buy Bata India with a stop loss of Rs 825 and a target of Rs 870. With whole lot of restructuring going on, closing down of non operative branches, opening of new stores, introduction of new brands and new products and all those things. They have reported 30% jump in top line last year. Going forward with around 1,300 stores spread in around 500 cities in India, we believe that this company is going to be one of the biggest beneficiaries of FDI in retail whenever it happens. Buy CCL Products with a stop loss of Rs 228 and a target of Rs 250. This company is India’s second largest exporter of coffee engaged in different production of different varieties of coffee. The plants are located in Guntur district of Andhra Pradesh. The current combined capacity is around 20,000 metric tonne per annum and last year full year profit jumped by around 40%. Trading at a PE of less than eight times its FY13 earnings, we believe that the valuations are also attractive. Hence we recommend this as a buy. Buy Rallis India with a stop loss of Rs 130 and a target of Rs 145. Last year the number took a hit because with increase in fertilizer prices, pharma resorted to cutting cost on pesticides. But going forward, the company believes that with new contracts in their hand and opening of new lines in Dahej plant, things would stabilize. They have even resorted to cost cutting and all. So, that would take care of the margins. Moreover with food inflation on a high, anything related to agri sector would be benefit at least for the next two-three years. Disclaimer: He doesn't hold stocks discussed but may have recommended them to clients. _PAGEBREAK_ Pankaj Jain, Sunteck Wealthmax Buy Essar Oil for target of Rs 62.75 and keep a stoploss at Rs 54.45. What we have seen in the stock yesterday the volumes were vey heavy, almost 5 to 6 times the regular volume and we believe this positive momentum would continue today also. With the kind of positive momentum, the kind of volume breakout we have seen there yesterday we believe that stock is heading towards 200 DMA which is close to Rs 64. However, for the day my target is Rs 62.75. Buy Lanco Infratech for target of Rs 15.45 and keep a stoploss at Rs 13.75. This stock had gone serious correction from levels closer to Rs 23-24 levels to levels closer to Rs 12, almost 50% correction in last two-two and half months. Thereafter the stock had been consolidating between Rs 12-Rs 12.50 kind of range. Yesterday or for the last 2-3 days we were seeing that the open interest position increasing and the momentum was back into power infra stocks Buy Punj Lloyd for target of Rs 51.95 and keep a stoploss at Rs 46.45.
Punj Lloyd had corrected 25-30% from early April to early June. Again we are seeing that decent midcap infra stocks are again in momentum positive phase. I think most of the negatives around Punj Lloyd are already incorporated in current price. We have seen that stock almost closer to knocking distance of 50 DMA which is at Rs 48.60 and could scale up to levels closer to 200 DMA in next few days. Buy HDIL for target of Rs 83.75 and keep a stoploss at Rs 76.25. Yesterday most of the realty stocks including DLF, Bombay Dyeing, HDIL in for some serious momentum on north side. We believe that this momentum could carry on and taking that into consideration, taking the volume breakout into considerations and this stock after hovering at levels closer to Rs 71-72 which was its 50 DMA. It took off yesterday from those levels and the stock could easily headed to levels somewhere between Rs 85 to Rs 90 in coming few days.
Disclaimer: He doesn't hold stocks discussed but may have recommended them to clients. _PAGEBREAK_ Parag Doctor of Keynote Capital Buy Delta Corp for target of Rs 67 and keep a stoploss at Rs 62. Delta Corp has found a base between Rs 55 and Rs 60 levels. It is on a rising trend line and has found support on the 50 day moving average. The stock has headed higher to the recent high around Rs 67 levels and can be bought with a stop loss of Rs 62.
Buy BF Utilities for target of Rs 418 and keep a stoploss at Rs 398. BF Utilities has crossed the 200 day moving average and has had long open interest build up. The stock is headed higher to around Rs 418 levels and can be bought with a stop loss of Rs 398. Buy HDIL for target of Rs 83 and keep a stoploss at Rs 77. HDIL has been a beaten down stock in the recent few months and has corrected sharply from Rs 130 to around Rs 60 levels. Now the stock is on a corrective uptrend. It has formed a very strong base between Rs 60-70 levels. It has broken out of the recent high at Rs 77 with strong open interest build up and is headed to the immediate target of Rs 83 which is where the 200 day moving average is located and can be bought with a stop loss of Rs 77. Buy Indraprastha Gas for target of Rs 259 and keep a stoploss at Rs 239. Indraprastha Gas has lost more than 50% of its value in the recent few months and now has formed a long-term base around the Rs 200 levels. Immediate base is forming between Rs 225-230 levels. The stock has started an uptrend with good long open interest build up and is headed higher to around a target of Rs 259 which is the bottom of the gap in the charts and can be bought with a stop loss of Rs 239. Disclaimer: He doesn't hold stocks discussed but may have recommended them to clients.