Sell Adani Ent, Rel Power, United Phosp: SP Tulsian

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

Buy Rashtriya Chemicals and Fertilisers (RCF) with a day target of Rs 42.50 and a stop loss of Rs 39.50. The company has posted robust Q4 numbers with EBIDA at Rs 237 crore against Rs 185 crore year-on-year (Y-o-Y) and Rs 133 crore against quarter-on-quarter (Q-o-Q) and these good numbers have come because of the better working from its urea plant at Thal, which is its core business. This is likely to be seen quite good by the market and hence a buy call.

Short Adani Enterprises with a day target of Rs 209 and a stop loss of Rs 219. Two subsidiaries of the company i.e. Adani Port and Adani Power are showing weakness and even the trading weakness is seen in this stock with the fresh shorts seen getting created and liquidation of the delivery based position and the weak outlook is seen in the near-term and hence a short call.

Short Reliance Power with a day target of Rs 75 and a stop loss of Rs 78.50. The Q4 numbers posted by the company are seen quite dull on a Q-o-Q basis on its topline, on its EBITDA as also because of the higher interest and the huge debt of Rs 24,000 crore in the books as of March 31, 2013 is also seen quite negative and concerning. Apart from this, the bottomline has increased because of the tax reversal in Q4. So overall the Q4 numbers seem to be quite dull and bad and this is going to see the selling pressure coming into the stock and hence a sell call.

Sell United Phosphorous with a day target of Rs 140 and stop loss of Rs 147. Post its good Q4 numbers, the share has seen a good run up and yesterday we have seen the selling coming in from the institutional investors like ICICI and this trend of profit booking by the institutional investors is likely to continue, which can make the stocks to remain weak in time to come and hence a sell call.