Buy Aurobindo Pharma, Tech Mahindra; sell GMR Infra: Joshi

In CNBC-TV18's popular show Bull's Eye, Sharmila Joshi of Peerless Securities shares her trading strategies for the day.

One may sell GMR Infrastructure with a target of Rs 21.15 and a stoploss at Rs 21.90. Overall we have seen that there were some positives for GMR which played out in its price and we saw the stock rally quite nicely in the past two-three weeks. But overall, infrastructure as a space is weak and in the current downturn on the markets one is likely to see the infrastructure space correct which is why I think GMR Infrastructure will also lose some of the gains that it had made in the last couple of weeks. We are seeing weakness return to banks and we are seeing deep cuts across banks whether they are public sector undertaking (PSU) or private sector banks and there seems to be little regard for valuation because in that sense Federal Bank is trading at fairly attractive valuations. But with the concern of the quarter earnings looming on banks one is likely to see further weakness here. I will sell Federal Bank with a target of Rs 281 and stoploss at Rs 291. One can buy Aurobindo Pharma. This can be bought for the short term with a target of about Rs 220. Overall it is a stock that looks attractive on a valuation basis. One can buy Tech Mahindra with a day target of Rs 1,355. Strength is returning to IT and perhaps looking at the oncoming earning season, I think IT will be one of the few sectors that will hold its own in terms of the kind of numbers that they are able to deliver. I expect a good performance from Tech Mahindra as well. For the day I will buy it with a target of Rs 1355.