Buy Bata, Century Textiles, United Bank: Prakash Diwan

In CNBC-TV18's popular show Bull's Eye, Prakash Diwan, Prakash Diwan's Wealth Circle shares trading strategy of the day.

 

Buy Bata India. It is a stock that has been in an oversold zone given the fact that we have a risk on mood setting in, consumption stocks are likely to do very well. I expect Bata given the kind of robust growth that it has been showing to continue doing it with a target price of Rs 948 and stop loss of Rs 898.

 

Buy Century Textiles and Industries. This is completely riding on the cement theme, this is a company that’s remarkably sitting on huge assets whether its cement, whether its paper and all of them are in top notch demand today which makes sure that the valuations of the company continues moving up in these markets. Buy this with a target of Rs 430.50 and stop loss of Rs 410.50.

 

Buy United Bank of India. Banks have been in flavor particularly the smaller banks. United Bank possibly is a candidate that could benefit from a merger with a larger bank and we have been talking about these kind of alliances driven by Reserve Bank of India’s consolidation mood. If that were to happen United Bank definitely would fetch much more value than what is prevailing in the market. So the target price of Rs 78.50 and a stop loss of Rs 72.50 is a call on United Bank.

 

Buy IRB Infrastructure Developers. It is a continuation from my earlier selection. The only change that I have made is I have kept the target at Rs 140.50 and revised the stop loss higher to Rs 132.50.