Buy Apollo Hospitals, JK Lakshmi; sell Renuka: 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 Apollo Hospitals with a day target of Rs 1,049 and stop loss of Rs 989. This seems to be the best healthcare company amongst the listed peers and we have seen some value buying emerging yesterday in late trade, which is likely to continue in the near-term and hence a buy call.
I have a buy call on JK Lakshmi Cement with a day target of Rs 122 and stop loss of Rs 115. This company having posted an earnings per share (EPS) of Rs 15 for FY13 is doing well in the current year. Based on this news, we have seen the informed and value buying emerging in the stock for the last couple of days and hence a buy call.
I have a short call on Shree Renuka Sugars with a day target of Rs 16.50 and stop loss of Rs 18. The huge debt piled up in the books of the company of Rs 6,500 crore, of which a part of it is forex debt, is seen to be a big concern in lieu of the weakening rupee. Apart from that the plans of the company to raise further amount of Rs 1,600-1,800 crore for its Brazilian units will also be seen quite difficult, which will put huge working capital pressure on the company ahead of its working, which will be starting in Brazil and hence a sell call.
I have a sell call on Jain Irrigation Systems with a day target of Rs 54 and stop loss of Rs 58. The huge debt of Rs 3,400 crore is seen to be quite negative for the stock. It has been seeing huge liquidation in the futures and options (F&O) as well as the delivery based selling for the last one week. That has made the stock to correct is likely to continue or remain under bearish mode for some more time because the season which has emerged ahead of the company will also increase the working capital pressure and this will keep weak bias on the stock and hence a sell call.