Bull's Eye: Buy Suzlon, ITC, BPCL, Tata Motors

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well. This week, SP Tulsian of sptulisan.com, Sharmila Joshi, Head of Equities, Fairwealth Securities and Lancelot D Cunha, ITI Wealth Management battle it out for top honours. SP Tulsian, sptulsian.com

Buy Suzlon with a day target of Rs 20 and stop loss of Rs 17.80. Buy call has been given because the FCCB holders of USD 335 million have given an extension of 45 days to the company till 27 July for repayment of its liability and it is learned that the company is into an active negotiation for raising fresh loan of about USD 300 million to repay this liability and this is likely to be seen quite positive by the market which may lead to the short covering, because counter is looking heavily oversold and hence a buy call.

Buy Alembic Pharma with a day target of Rs 55 and stop loss of Rs 51. This pharma company is quite established with a top-line of Rs 1,500 crore and EPS of Rs 7 and has been witnessing informed buying and it is expected that the share can move to about Rs 75 in next 2 to 3 months and the promoter stake of 75% in the company also instills confidence and hence a buy call.

Buy Gujarat Industries Power Company Ltd. (GIPCL)with a day target of Rs 70 and stop loss of Rs 66. This power generation company is having a book value of Rs 95 and EPS of Rs 7 is seen most undervalued amongst all the power generation companies and informed buying has been witnessed in the stock yesterday which is likely to continue and hence a buy call.

Short VIP Industries with a day target of Rs 75 and stop loss of Rs 80. The stock is witnessing profit booking and fresh shorts are likely to get created at the current level and technically the stock is looking weak and hence a sell call. Sharmila Joshi, Fairwealth Securities Buy Syndicate Bank with a target of Rs 103 and a stop loss at Rs 99. Yesterday too I had a midcap bank, Andhra Bank. Today too I introduce Syndicate Bank. A longer term target on this is in fact Rs 140. Once again a good bank with a good dividend yield and one would expect that once the results come back on track and with the changing interest rates scenario we could see the stock going back to Rs 140 levels. So it’s a buy for the day with a target of Rs 103. Buy Shasun Pharma with a target of Rs 119 and a stop loss at Rs 113.50. A stock that I like in the midcap pharma space and I think that this coming year id going to see a very good growth for Shasun since some of the earlier measures that they have taken place will all show in the numbers in this year. So this I buy with a target of Rs 119. Buy ITC with a target of Rs 246 and a stop loss at Rs 238. I am introducing ITC largely because we have just seen FMCG kind of get into the positive zone. Also if there is any volatility these stocks don’t really react too much so to provide safety from that point of view as well. So this is a stock that I buy with a target of Rs 246 for the day. Sell Bharti Airtel with a target of Rs 297 and a stop loss at Rs 307. Telecom is a sector that I don’t really like given the kind of developments that we have seen. I think that the point of entry to invest into Bharti has now shifted lower. So while the stock is really been very range bound I would be more comfortable entering it at Rs 280 kind of levels so that’s where I really see the stock going. So for the day I have a target of Rs 297. Lancelot D Cunha, ITI Wealth Management Buy BPCL with a target price of Rs 725.40 and a stop loss of Rs 705.50. BPCL recently announced another discovery of gas in its oil block in Mozambique. This share of the discovery now takes its oil reserves to between 3 trillion to 6 trillion cubic feet which is equivalent to about 500 million barrels. This is very positive for the stock in the long run. Buy Tata Motors with a target price of Rs 242.80 and a stop loss of Rs 230.05. Tata Motors recently had fallen off given anticipated slowdown in China, India and Europe but however this is already been factored in in the price. I think valuations are looking extremely reasonable at this price Tata Motors trades at about six times its FY13 forward EPS and its trading at about two times its FY13 book value. After this sell off when hit a low that stock has been moving up on lower volumes and we are seeing that there is some accumulation going on the stock. Buy Reliance Infra with a target price of Rs 527.90 and a stop loss of Rs 501. Reliance Infra has been moving up especially after the Prime Minister had the high power meeting to address issues relating to the infrastructure sector. I see the momentum continuing in the stock on informed buying and this is something that is moving the stock up. Tata Power recently has been in the news where it is with coal prices moderating in the international markets we are seeing that the problems of the company relating to coal seems to be coming under control. On a valuation basis is looking extremely reasonable in terms of price and over the last two three days you see some accumulation taking place in the stock and I expect it to hit its target price of Rs 98.50.