Buy Adani Power, Mahindra Satyam, Glenmark Pharma: Tulsian

In CNBC-TV18's popular show Bull's Eye, SP Tulsian of sptulsian.com shares his trading strategies for the day.

I have a buy call on Adani Power with a day target of Rs 55 and stop loss of Rs 51. We have seen the informed buying taking place yesterday in the stock because the name of the company or the group has not appeared anywhere in the coal scam which is seen quite positive by the market. The CERC price region is also being talked by the market and hence a buy call. I have a buy call on Mahindra Satyam with a day target of Rs 116 and stop loss of Rs 109. The last hurdle in merger of the company with Tech Mahindra has been cleared yesterday by the Andhra Pradesh High Court. This process will get implemented in next couple of months on a swap ratio of two shares of Tech Mahindra for every 17 shares held in the company. This will be quite positive for the stock. Apart from that, weak rupee is also helping all the IT companies. Also, there is a small arbitrage play existing because of the swap ratio and hence a buy call. I have a short call on JP Power with a day target of Rs 19.50 and stop loss of Rs 21. We have been seeing weakness in the stock because of the high debt in the books of the company and delay in commencement of its projects. Apart from that, share has hit a 52 week low which is resulting into liquidations of the long positions and delivery based selling happening in the counter which is likely to continue and hence a short call. I have a buy call on Glenmark Pharma with a day target of Rs 595 and stop loss of Rs 567. The stock is seen in the strong grip of High Networth Individual (HNI) and informed circle for last one month and the weak rupee is likely to be seen quite beneficial because company is due to receive good amount of forex money in the form of milestone payment and royalties in the time to come over next one year or so. This is going to keep the buying interest alive in this pharma stocks and hence a buy call.