Buy Ceat, Hexaware Technologies, PVR, Dabur: Sharmila Joshi

In CNBC-TV18's popular show Bull's Eye, Sharmila Joshi of Peerless Securities shares his trading strategies for the day.

One can buy Ceat with a target of Rs 110 and a stop loss at Rs 105.50. We have a buy on the stock with a longer-term target of about Rs 141. The way the business has shaped up and the fact that rubber prices have come down significantly will mean that Ceat will have better margins going ahead. At the current price Ceat is available at a very reasonable valuations.

One can buy Hexaware Technologies with a target of Rs 93 and a stop loss at Rs 89.20. The valuations are very attractive for a midcap size IT company which is doing well. We have seen that Hexaware had a set back in the last quarter because one of their major clients had stopped giving them business, but now they are back on track and now the margins are expected to expand in the coming quarters. We have a longer-term buy on the stock with a target of Rs 115. For the day I will buy it with a target of Rs 93.

One may buy PVR with a target of Rs 342 and a stop loss at Rs 332. My longer term target on this stock would be Rs 400. PVR is now in a position of dominance because having completed their Cinemax buyout as well as another buyout in Delhi it has monopoly over the space with 248 screens across 51 locations. We have seen that cost realization has meant that they will get better margins going ahead.

One can buy Dabur India with a target of Rs 161 and a stop loss of Rs 155.50. Fast moving consumer goods (FMCG) is a preferred space to be in volatile markets because this is a space that will give one some kind of surety as far as earnings go. With its well diversified portfolio and it is a leader of various segments whether it is fruit juice or whether it is honey and some of the other hair care products. This becomes a good FMCG stock to look at even from a longer term perspective. For the day, I buy with a target of Rs 161.