Go long on Bata, Sun TV, Punj Lloyd, RCF: Ashish Kapur

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

My first pick for the day is a long on Bata India with a target of Rs 915 and stop loss at Rs 850. The stock continues to enjoy good momentum despite overall weak market conditions mainly because of very encouraging results and a promising future. The company is expanding very rapidly and its already well established brand into various new towns and cities. The company also is expanding its product range by entering into scarves and sunglasses and various other categories. We think that given the market conditions, it is very important for investors to look at stocks like Bata.
Second pick for the day is a long on Sun TV Network with a target of Rs 460 and a stop loss at Rs 425. It continues to enjoy near monopoly situation in the fast growing southern market for television. Southern market is also one of the stronger markets and is rapidly growing. So this near monopoly situation gives Sun TV a very strong growth possibilities going forward with digitisation, the TV penetration is likely to increase and Sun TV would be key beneficiary of this.
My third pick for the day is a long on Punj Lloyd with a target of Rs 48 and a stop loss at Rs 43. Now, Punj Lloyd finally has started showing signs of bottoming out. The last quarter results were fairly encouraging with a very significant growth both in topline as well as in bottom line. The company also encouragingly has hived off a lot of its debt. We feel that the policy initiatives along with some changes in the external environment will help this erstwhile fundamentally strong company to start showing improving results going forward.
Final pick for the day is a long on Rashtriya Chemicals and Fertilisers (RCF) with a target of Rs 44 and a stop loss at Rs 40. Now, RCF, though results were nothing impressive but we feel that the current evaluation has very limited downside risk. Also the operations at Thal have started picking up and I think the results of this will be visible in coming few quarters. This along with the fact that the company has taken significant steps at debottlenecking, energy saving and also cost reduction in various other parameters would help it show better numbers in coming few quarters.