Buy Alok Textiles, GVK Power, Lanco Infra: Tater

In CNBC-TV18's popular show Bull's Eye, Aashish Tater of FortuneWizard.com shares trading strategy of the day.

I am going long on Alok Industries. It is a bet from a longer-term perspective too. We feel Alok Textile would be able to reduce its debt significantly, which would have lot of impact in terms of bottomline and we feel the EPS impact would be to the tune of Re 1 per share. Thus, we have a medium-term target of Rs 17 onto the stock however go long on this particular stock for a target of Rs 13 with a closing stop of around Rs 11.45.

We are going long on GVK Power for a target of Rs 14 with a closing stop of around Rs 11.50. We feel this particular stock has got tremendous potential and is right now rangebound between this Rs 11.50 and Rs 18 mark. And it is getting accumulated. Once the power utility problem of gas is solved, these are companies, which will come with flying colours and we feel this is the right time to accumulate given the worse is almost priced into the stock.

Lanco Infratech is another long from my side for a target of Rs 14. We feel this particular stock also has bottomed out at current levels and there is hardly any downside of a rupee or so on this particular stock. But from longer-term perspective we feel that the problem with the power sector is about to get resolved. This could be big beneficiary and this could lead to higher rerating in the stock. The stock is also rangebound between Rs 12 and Rs 18 mark thus one can go long on this particular stock from short-term perspective too.

Indian Overseas Bank is another long from my side. I am going long on this particular stock for a target of Rs 79 with a closing stop of Rs 75.50. The basic rationale being picking this particular stock was from yesterday’s statement of FM where they are looking to infuse fresh capital into IOB. We feel if the government invest a significant portion back to the IOB, almost all its issues would be resolved and the bank would be able to again give that momentum that the stock was in last 18 months before. So it could be another stock where we have a conviction buy.