Buy Emco, Rel Comm; sell HDIL: Tater

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

I am going long on Emco for a target of close to Rs 33 with a closing stop of Rs 29.50. This is a fundamental bet where we feel there is a likely possibility that the stock could go and get rerated to above Rs 55 because the company is now focusing on rehogging its assets, which will definitely benefit the core business in days to come.

HDIL is a short from my side. I am going to short this particular stock after seeing a technical bearish foundation on this particular stock. We suggested a short on this particular stock around Rs 116 mark with the stop loss of Rs 122. We had a target of close to Rs 102 mark and given that right now the strategies in the money we would continue to hold this particular short with a stop loss of Rs 110 for a target of Rs 106 intraday and Rs 102 in days to come.

Steel Authority of India (SAIL) is another short from our side. Rs 94 is a very crucial zone for this particular stock where the supply is expected on this particular stock. So this could be a fresh strategy you should short between Rs 90-92 odd mark with a closing stop of Rs 94 on this particular stock for an eventual target of Rs 82 from short-term perspective. Given the outlook on steel sector, we still feel there is lot of negative and company like SAIL would still remain under pressure even after the recent run up the stock has seen. So this would be a good exit for people who are holding this particular stock.

Buy Reliance Communications (RCOM) with a target price of Rs 75 and a stop loss at Rs 71.