Buy Tata Global, Network 18, Rel Cap; sell HDIL: Mukadam

In CNBC-TV18's popular show Bull's Eye, Shahina Mukadam of Varun Capital shares her trading strategies for the day.

Tata Global Beverage has corrected in the last one month from the levels of Rs 160 to current levels of close to around Rs 140. At these levels it is finding quite a bit of support. Three fourth of its business comes from international markets, so the rupee depreciation is a positive for the company. It has strong brands, it is the second largest tea company in the world with valuations of around 20 times P/E of FY14 EPS estimated of around 7. It is a value pick from here with medium term also.

Network 18 Media & Investments has started looking attractive at current levels. The stock has corrected a lot over the last couple of months and at current levels it seems to have found some bit of stability. The balance sheet quality has improved. In 2013 the capital and net worth was increased and debt was bought down bringing the debt equity ratio to reasonable levels. Change in government policies with regards to digitalization, and with regards to increase in FDI limits for new segments auger well for the company.

(Disclaimer: Moneycontrol.com is part of the Network18 Group.)

One may buy Reliance Capital keeping a target of Rs 324 and stop loss of Rs 303.

One may short Housing Development and Infrastructure (HDIL) with a target price of Rs 27 and stop loss of Rs 35.50.