Buy Reliance Power, Dhanlaxmi Bank, Adani Ports, DLF: Diwan

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

One may go long on Reliance Power. We have seen a huge rally in the high beta stocks begin in the previous sessions. I expect that to continue and percolate down to some of stocks that are yet to participate whole heartedly into this pullback or this rally. Given Reliance Power's strong improving fundamentals should start looking up on everybody's portfolio from a longer term perspective but for the day we would look at a target of Rs 74.25 and a stoploss of Rs 68.70.

One may go long on Dhanlaxmi Bank. We have seen large public sector undertaking (PSU) banks do extremely well in the previous session. I would expect that same sort of fervor percolate down to the midsized banks going forward. Some of the banks which have been out of favour and have been in the oversold zone are likely to come back. We have seen a marginal uptick even for this counter but there is much more of headroom for this bank particularly after the allowance for expansion for most banks been announced by the RBI. I would expect Dhanlaxmi Bank to scale a target of Rs 42.85 while keeping a stoploss of Rs 39.85.

One may go long on Adani Ports and Special Economic Zone. This entire group has been in the momentum of sorts even before we saw the US Fed driven rally. I would expect Adani Ports to continue the momentum hereon and we would look at the ports business to benefit with the government's libralised outlook towards imports on particularly coal for the power plant that badly need resurrection. So, Adani Ports is definitely going to be one of the key beneficiaries of the changing regime on this front. We would look at a target price of Rs 144.90 and a stoploss of Rs 134.50.

One may go long on DLF. The rally in the previous session has been lead by the PSU banks. DLF has still much more headroom because this is one stock that could benefit tremendously from the lowering of the interest rates be it in the short-term, be it in the long-term or any kind of velocity of money, expansion would definitely benefit DLF as a counter. We would look at going long with a target price of Rs 182.90.