Buy IFCI, IB Real Estate, JP Infra: Agarwal

In CNBC-TV18's popular show Bull's Eye, Abhishek Agarwal of Fortune Interfinance shares trading strategy of the day.
 
Buy IFCI with a target price of Rs 42 and stop loss of Rs 37.5. The change of management in IFCI seems to be a favourable bet by the market since the stock was up 11 percent on Friday’s closing trade. The stock has underperformed and has been subdued for the last one year. It seems that with the new management the stock can see a fresh start from now. It is a good bet for the long-term therefore it’s a long-term bet and it’s a buy.
 
Real estate stocks have been performing well since last three months. Indiabulls Real Estate is performing with its peers, considering it has bounced back from its September ’12 lows of Rs 42. The company enjoys great land bank and has excellent lease rental properties across Mumbai. It is trading considerably cheaper to its valuations. Interestingly the promoters are increasing their stake in the company since last six quarters where it has moved from 27 percent to 42 percent in the company. I believe the stock can perform well this year and can touch a three digit target in the near term.
 
Jaypee Infratech is a good bet in the infrastructure sector. This stock is moving up since Rs 40. Considering it’s five times PE trading, it is a good bet going forward. The stock can go up to Rs 75 in the medium-term.
 
Buy Karnataka Bank with a target price of Rs 195 and a stop loss of Rs 177. The stake news has been going around for quite sometime and the stock has been very volatile in the same period. However the valuations are still attractive for the stock to be trading again above Rs 200. Since the market momentum is very strong this stock can further move up from the current levels. A tight stop loss should be maintained in the stock.