Buy Jubilant Food; sell Reliance Capital, Raymond: Lancelot

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

One can sell Reliance Capital. It has seen significant selling and the stock has risen up nearly on expectations that the company would be applying for a banking licence. Now that the event is over one has started seeing some selling in the stock and the selling could accelerate given the weak market conditions and we could see it hitting its target price of Rs 334.
One can sell Raymond with a target price of Rs 229. Raymond has broken a technical level and we could see some accelerated selling on the back of breach of this levels. There is also some kind of indication that, maybe the sale of its land bank in Thane, which was one of the major price triggers earlier, might be put on the back burner given the weak market conditions for real estate projects. It could further dampen the buying that might happen so given this background it looks that it could move further down to hit its target price of Rs 229.
One can sell JSW Steel with a target price of Rs 601. It has been hit with higher iron ore prices because of the increase in royalty to 15 percent as well as due to the fact that it imports a significant amount of its coal requirements. The high dollar rupee depreciation that is happening will adversely impact JSW Steel and based on that we have seen some amount of selling take place. The selling could get accelerated and it could move to its target price of Rs 601.
One can buy Jubilant Foodworks with a target price of Rs 1131. Jubilant Foodworks has seen good buying over the past few sessions. Despite an overall market fall the difficult economic conditions create an issue as far as the long term valuation is concerned. The stock looks fairly valued. It may do a Rs 25 earnings per share which means it trades at about 40 times its FY14 earnings which is relatively expensive. However, on a short term basis since the stock has been moving I expect it could move up further and move to hit its target price of Rs 1131.