Buy LIC Hsg Fin, NMDC; Karnataka Bank: Cunha

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha of ITI Wealth Management shares trading strategy of the day.
 
Buy LIC Housing Finance. It has recently been trending higher on improved volume and I have also noticed that this stock has broken out above a technical level which means that it is in an uptrend and it should move further upwards. Possible trigger could be that if interest rates are likely to be eased downwards given the fact that we have core inflation easing up so we could see the stock moving up to hit its target price of Rs 280.50.
 
Buy NMDC with a target price of Rs 167 and a stop loss of Rs 157. NMDC recently has been hammered down because of the follow-on public offer. Now that the offer is behind us and we would see some amount of short covering. We have also seen good volumes in NMDC in the close of last week which indicates that there is buying interest.
 
Buy Karnataka Bank with a target price of Rs 169 and a stop loss of Rs 159.10. Karnataka Bank has fallen in the last week, almost 15-16 percent. However now we have seen good volumes moving the stock back up to its close of Rs 163. Technically the stock is poised to move upward from these levels and even on fundamental basis the stock is trading at about 1.75 times with book value which is pretty reasonable for a bank of this kind.
 
Sell Jain Irrigation with a target price of Rs 68.05 and a stop loss of Rs 71.2. This stock has been moving downwards continuously on large volumes and has been trending lower and on technical basis the chart appear that it should move further down. I believe that given the current weakness in the stock as well as the selling we could see it move downward with a momentum that it has to its target price of Rs 68.05.