Buy Hexaware, Biocon, Idea Cellular, KPIT Cummins: D Cunha

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

One may buy Hexaware Technologies. It has received approvals for Barings to purchase out its stake, the promoter stake and this could be a positive price trigger on the stock. We could see some volumes and we have seen some accumulation in the past few days and that has lead to a positive view on the stock. I expect the stock to move up in and hit its target price of Rs 131.50. One may buy Biocon. The stock is a good long-term investment which can be accumulated at lower levels. It has made significant investments in bio-similar insulin products which will pay off in the longer run and it will take a while to pay off. We are seeing strong growth in the pharmaceutical formulations business and that will add to the earnings per share on annual basis. Presently the stock trades at about 18 times its FY15 earnings which is fairly attractive. The stock has remained fairly firm in the last few trading sessions and we could see the stock move up a bit to hit its target price of Rs 338. One may buy Idea Cellular. the stock has seen good volumes over the past few trading sessions and has remained steady at these prices, inspite of the fact that markets have been extremely volatile. This is a phase of consolidation and given the buying volumes we could see it breakout of consolidation mode and move to the target price of Rs 169. One may buy KPIT Cummins Infosystems with a target price of Rs 135.50. The stock has seen good buying support in the last few trading sessions despite a slow down or a fall in the market price of various IT companies. The company is expected to generate better revenues given the recent depreciation in the rupee and trades at 10 PE that is forward FY14 earnings, which is fairly attractive from a long term perspective. Given the recent buying, I expect the trend to accelerate a bit.