Buy Sobha Developers, REC; sell LIC Housing: D Cunha

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha of ITI Wealth Management shares his trading strategies for the day.

One can buy Sobha Developers. It has recently announced its sales performance for the quarter ended June. The sales have improved to Rs 602 crore as compared to Rs 547 crore in quarter on quarter. The realisation also has gone up to Rs 6,700 crore which is positive for the company given the very difficult conditions for real estate sector. The stock has hit a low and has bounced off the lows on improved volumes and I expect that given the buying and the news, you should see the stock move up and hit its target price of Rs 347.90.
One can buy Rural Electrification Corporation (REC) limited. The stock has moved off its lows on significantly higher volumes and I believe it has technically poised to move higher. The negatives seem to have been priced into the stock and from a valuation perspective also looks attractive. It trades at 0.38 times its book value. So this stock could see some action.
One can sell Allahabad Bank. It is looking very weak technically and has seen continued selling. I expected this selling to take it down further. It is hitting new lows and it could hit further lows. I expect it to hit the target price of Rs 85.50.
One may sell LIC Housing Finance. It also has seen some consistent selling and probably one of the reasons could be that after the event of the LIC Housing Finance applying for a banking license, there could be some unwinding of positions which has moved the stock to lower levels. The stock is technically looking weak and some increased momentum in the selling could take place which could drive it down to its target price of Rs 227.