Go long on Tech Mahindra, Glenmark Pharma; sell HDIL: Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur of Investshoppe shares his trading strategies for the day.

One may go long on Tech Mahindra with a target of Rs 1170 and a stop loss at Rs 1100. Infosys results on Friday clearly demonstrate that IT sector still has good days going ahead. We like Tech Mahindra in this sector because after the merger of Mahindra Satyam with it the company is one of the largest companies, very well established and doing very well with results been very encouraging. Going ahead the capability of this company to win large orders increases and we feel that the going ahead would be fairly good for this company. One may go long on Reliance Capital with a target of Rs 400 and a stop loss at Rs 375. Given the kind of momentum which we have seen building up on Reliance Capital in particular and also on the entire ADAG Group stocks. We feel Reliance Capital can be very interesting trading idea on the long side in the near-term. Also within the ADAG Group this is one company which we feel it has its business model very firmly intact. In fact, the business prospects are very encouraging, the company is doing well in various segments particular the mutual fund and insurance business. We feel that to take advantage of the momentum this is perhaps the best stock within the ADAG space. One may go long on Glenmark Pharma with a target of Rs 630 and a stop loss at Rs 590. We continue to favour the defensive space for near-term trading and to that extent Glenmark is one stock in the pharma space which still has plenty of room on the upside. The company is doing well and we expect good announcements to keep coming both on results as well as milestones achieved particularly in the US market. Given all that we feel it is a good stock with very limited downside risk and a good upside potential. One may sell on Housing Development and Infrastructure (HDIL) with a target of Rs 37 and a stop loss at Rs 40. Real estate is one sector which continues to see selling pressure and given the kind of announcements we have seen on the IIP as well as on the inflation numbers on Friday we feel the downside momentum in real estate could further gather pace. HDIL within the real estate space is one weak stock. We expect negative announcements to keep coming on this company and if would be a very safe idea to go short on and specially to hedge the portfolio. Therefore, we are suggesting a short for the day with a target of Rs 37.