Buy PFC, TV18 Broadcast, Canara Bank: Diwan

In CNBC-TV18's popular show Bull's Eye, Prakash Diwan of Altamount Capital Management shares his trading strategies for the day.

One can go long on Power Finance Corporation (PFC). It is a combination of infrastructure and financial services and that is exactly what is going to be the great upside for this particular stock. It is a great call for the medium to long term investor. However, for the day we are going long with a target price of Rs 119.90 and a stop loss of Rs 111.90. One can go long on Shriram Transport Finance Corporation. Given the fact that the mining ban could probably be under going a little bit of a change of sought from the government side, the Supreme Court verdict of the same – Shriram Transport Finance could probably see its good old days coming back. Little bit of buying may start emerging in this beaten down counter and that could probably help us make some money. There is a long call on Shriram Transport with a target price of Rs 572.40 and a stop loss of Rs 542.50. One can go long on TV18 Broadcast given the fact that the media space is likely to see a lot of activity given the government's willingness to liberalise the foreign direct investment (FDI) component from the current levels to almost up to 74 percent mark. This could see some heightened mergers and acquisition (M&A) activity within this space and could unlock value which is there in this particular counter as well. We will go long on TV18 Broadcast with a target price of Rs 18.20 and a stop loss of Rs 16.90. (Disclaimer: Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group.) One can go long on Canara Bank. I expect some positive news flow around the banks particularly aiding the public sector undertakings (PSU) banks and that too correlation with making sure that their non performing assets (NPA) component comes down in some sort of a restructuring that the Reserve Bank of India (RBI) could probably allow given the tough market conditions. If that were to happen some of these larger PSU banks would benefit quite a bit from the beaten down values at the current level. It is a long call on Canara Bank with a target price of Rs 217.90 and a stop loss of Rs 204.90.