Buy Tech Mahindra, Canara Bank, Balrampur Chini: Diwan

In CNBC-TV18's popular show Bull's Eye, Prakash Diwan of Altamount Capital Management shares his trading strategies for the day.

One may go long on Tech Mahindra on the fact that IT has seen a lot of drubbing given the rupee's upward move. This sounds like a contra call but the reason behind risk is the fact that valuations are far more attractive than the larger players in the IT space. I would believe it is a great medium to long-term buy but for the day we will go with the target of Rs 1,325 and stoploss of Rs 1,240. One may go long on the banking space, a space that has already seen quite a bit of momentum in the previous sessions. I would go long on Canara Bank. It is one of the banks that is yet to full heartedly participates in this upward move. So, we go long on Canara Bank with a target price of Rs 234 and a stoploss of Rs 218. I have chosen JSW Energy for its clean, neat and distinct growth that it has clocked in the last couple of quarters. The stock has started seeing an upward move from its recent lows that it had made. However, there is lot of headroom to still keep on going forward. It has attained some decent levels of plant load factor (PLF) in most of its plant and has diversified geographical footprint. I would believe JSW Energy is a stock to watch on the smaller power producers, so we go by the target of Rs 45 and stoploss of Rs 42 for the day. One may go long on Balrampur Chini Mills. We have seen some numbers come through for the sugar output as a whole. Sugar has started rumbling back into action and I believe one of the best bets in this space is going to be Balrampur Chini given the fact that sugar is a momentum driven area and Balrampur definitely stands out as a very good bet to play on. We would go long with a target of Rs 43.50 and stoploss of Rs 40.50.