Long PTC, REC, Apollo Tyres; short Sun TV: Aashish Tater

In CNBC-TV18's popular show Bull's Eye, Aashish Tater, Head of Research of fortunewizard.com shares his trading strategies for the day. 

The first is a long on Power Trading Corporation for a target of Rs 56 and the stop loss of Rs 50. The stock at current levels is lucratively priced given that market cap is Rs 1500 crore. The net receivables are around Rs 1100 outstanding. A profit of over Rs 150 crore at current market cap of Rs 1500 crore, this is a debt free company thus very lucrative at lower levels.

The second is a short on Sun TV Network with a target of Rs 342 and a stop loss of Rs 358 on intraday basis.

The third is a long on Rural Electrification Corporation (REC) for a target of Rs 205 and a stop loss of Rs 193.

Apollo Tyres is another long from my side. We feel that whatever we actually had given an internal note where we sighted that Rs 67-68 would be a very lucrative level for this particular stock given the negative build around the stock after yesterday’s deal. We feel at current price the risk reward is highly favourable and there is likely possibility that the market makers and promoters could actually support the stock at current levels because this gives you an risk adjusted return of over 10.5 percent which is much higher than global peers of close to 9 -10 percent levels.