Buy Jet Airways, MindTree, Canara Bank: Abhishek Agarwal

In CNBC-TV18's popular show Bull's Eye, Abhishek Agarwal, Fortune Interfinance shares trading strategy of the day.

First pick of the day is a buy call on Jet Airways with a target price of Rs 540 and a stop loss of Rs 495. It has gained more than 30 percent in last couple of sessions against vis-à-vis markets. The stock is hovering around with lot of news where the possibility of a stake sell or a tie-up with international airlines is on the radar. I believe the trend would continue for sometime however, I am bullish from the medium-term to long-term due to fundamentals.
The second pick of the day is a buy call on MindTree with a target price of Rs 700 and a stop loss of Rs 650. It is an excellent stock in the midcap IT sector. The full year cash EPS of FY12 itself stands at about Rs 70 therefore the stock is trading less than 10 times of its P/E multiple which itself is very significantly cheaper than most of its peer group. The stock has been hovering around between a range bound for last one month, also having considering the rupee depreciation the stock should be posting some gains going forward. I am also bullish for the stock for the medium-term to long-term.
My third pick of the day is a buy call on Canara Bank with a target price of Rs 460 and a stop loss of Rs 425. It is again a good stock in the PSU bank sector where the book value itself stands at about Rs 475. Therefore the stock is trading less than its price to book value. Even at EPS level, the stock has given an EPS of Rs 75, which itself is amendable. I believe the market is bullish in the medium-term that the banking stocks should perform and in that this stock should give a stellar performance.
Buy Aditya Birla Nuvo with the target price of Rs 1,040 and a stop loss of Rs 960. It has been consistently moving up for last two months. Henceforth, it is a momentum call. The FDI news for the insurance sector has been a big booster and post if today all the clearance happens in the parliament then the stock can gain further above four digits. This stock is recommended on the long-term basis therefore should be there in the portfolio of investors.