Buy YES Bank, KPIT Cummins; sell Aurobindo Pharma: D Cunha

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha CEO of Sharyans Wealth Management shares his trading strategies for the day.

One may buy YES Bank with a target of Rs 253. The stock has seen a massive fall in the last correction that we saw and is now trading at about two times its book value which is extremely attractive for a strong retail focused bank like YES Bank. There could be some concern on its corporate loans. However the fact that it is now growing its retail franchise in a big way and we are seeing 30 percent growth in terms of CASA deposits, that should provide some stability for the bank. I expect that this could move up given the good volumes that we saw on the last trading session and the momentum is likely to continue further. One may buy KPIT Cummins Infosystems. It is a stock that will also benefit from strong dollar and with good export earnings coming in this stock. It has not seen the rally that other IT stocks have seen and I believe that going forward we could see this stock now begin to rally. The stock could move higher on increased volumes and it could hit its target price of Rs 135.20. One may buy Future Retail. It has been in a stage of consolidation of its businesses and I believe we should see good momentum in the industry given that retail is now getting consolidated and profitable brands are coming under Future Retail. I think this stock has seen some buying interest in the last few trading sessions and that buying interest could take the momentum further higher. One can sell Aurobindo Pharma. It has moved up in anticipation of the clearance by the USFDA of its plants. However the stock has seen some amount of profit booking at higher levels and this could accelerate a bit given that there is always a time lag between the approvals and actually generation profits for the company. So profit booking could continue for a day further and we could see the stock moving down to hit its target price of Rs 174.