Go long on United Phos, Zee Entertain, Jubilant Food: Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur of Investshoppe shares his trading strategies for the day.

One may go long on Allahabad Bank with a target of Rs 92. We still feel that there is more pain left in the banking sector, especially the public sector undertaking (PSU) banking space, but for the moment I think the selling has been overdone, so clearly we saw a nice pullback yesterday on the back of short covering. With the kind of cues coming in especially from global markets we can expect this pullback to continue at least for the day, so keeping that in mind we are suggesting a long on Allahabad Bank with a target of Rs 92.

One may go long on United Phosphorous with a target of Rs 149.50 and a stop loss at Rs 142. The stock has been quoting at a significant discount to its peers over the last several quarters. Due to underperformance on account of working capital concerns, the situation seems to be changing and the working capital situation has dramatically improved in the last quarter. Going ahead we expect the situation to improve further as the management has taken lot of pains to bring down the inventory level as well as keep a tight check on debtors.

One may go long on Zee Entertainment with a target of Rs 255. It remains our top pick in the media space, because the company enjoys a very good balance sheet and despite huge investments on content development the cash flow generation from business is still very robust. Moreover, the company continues to enjoy market leadership resulting in good ad revenue. Also the subscription revenue remains very strong on the back of the Media Pro as well as the digitisation drive. So given all that we feel this stock will continue to do well and media anyway is a more defensive space and a better space to remain in the current market. So given all that we are suggesting a long in the stock keeping the day's target at Rs 255.

One may go long on Jubilant Foodworks with a target of Rs 1,225 and a stop loss at Rs 1,170. We saw a good momentum come back into this stock yesterday. Being in the consumption space which is the favourite spot to be in over the last couple of trading sessions we can expect this momentum to continue going forward. Even though the valuation is high and there are concerns over the performance of the last quarter the premium is justified because historically anyways Jubilant Foodworks has traded at a significant premium to the rest of the market and the other peers in the industry due to the unique position of being the only organised food player listed in the market. So we feel that given the kind of situation in the market where consumption is a ruling theme, momentum in this stock can certainly go on for some more time.