Buy IFCI, Apollo Tyres; short SAIL: Aashish Tater

In CNBC-TV18's popular show Bull's Eye, Aashish Tater, FortuneWizard.com shares trading strategy of the day.

I am going to short Steel Authority of India (SAIL) for a target of Rs 90 with a closing stop of Rs 100. We feel steel as a sector has given some bounce back, but still SAIL has got lot of issues to be resolved and even on fundamental aspect we feel this is one stock which is weakest in the sector and thus one can remain short on this particular stock till the stock closes above Rs 102 on closing basis. Industrial Finance Corporation of India (IFCI) is a long from our side. We are going long on IFCI for a target of Rs 38.20 with a closing stop loss of Rs 36.40. It has been making higher highs and correcting very fast and after that they are stabilizing at the previous bottom. So now with the bottom around at Rs 36-36.50 zone we feel there is a likely possibility of a stock getting bounce back to Rs 40-43 zone very soon and we have an eventual target of Rs 45-48 on the stock.
I am going long on Apollo Tyres for a target of Rs 100 from positional basis from next one month perspective with a closing stop of around Rs 85. The logic here is that Apollo Tyres would be reporting very good set of numbers as per our expectations and if that happens the stock would get very fast re-rated to Rs 105 odd mark in the short-term, but there is also a likely possibility of the event that the company would be considering a raise in their prices by almost 1.5-2 percent which is roughly going to give an additional EPS of Re 1 per quarter which is going to be very significant for a company like Apollo Tyres. Jain Irrigation is also a long from my side for a target of Rs 86 with a closing stop of Rs 80. We recommended this stock around at Rs 70 odd mark and we were bullish for a target of Rs 85-86 zone and now the stock is about to achieve that target we feel there is a likely positional stop loss around at Rs 80 level, because still you would be making Rs 10 based on our recommendation on worst side, otherwise you can make almost Rs 15 for the same strategy within last one month. Thus one can go long on this particular stock for a target of Rs 86 with a closing stop of Rs 80.