Buy Allahabad Bank, Jet; sell Financial Tech: Agarwal

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

One may buy Aditya Birla Nuvo. The recent policy on hiking its FDI stake for multi brand retail would augur well for the stock in future. It owns businesses like carbon black, broking, insurance as well as mutual fund. Going forward, any time if there is a demerger for its businesses it will unlock the value for the long time investors.
One may buy Jet Airways with a target price of Rs 400 and a stop loss of Rs 365. Positive news is flowing around for Jet Airways and it seems that Eithad is very serious in buying the stake in the company to about 24 percent. Although Eithad has never closed any kind of price but it seems like the price would never be below Rs 500. Therefore it is a good opportunity to buy for a medium term gain.
One may sell Financial Technologies as it has corrected almost by 25 percent in one month. The launch of its equity exchange under the brand of MCX-SX has not gone that well in the market. The volumes didn't deliver as per the expectations. There has been a large FII investors exiting the stock. Therefore, the pressure can continue for sometime. I am negative on the stock in the medium term.
One may buy Allahabad Bank. At current levels it is challenging almost all the parameters and the valuations. The dividend yield is coming up about 7 percent. The book value is about Rs 227 per share and the PE is training about 3.5 times. With all these numbers in place it seems it is one of the best bet to have for the next one year. The results are expected to come out on July 29 and even if we consider a great NPA provision from the bank I really don't think so it will augur that bad for the overall balance sheet. This stock is definitely a buy at current levels.