Go long on Andhra Bank, Raymond; sell Allahabad Bank: Tater

In CNBC-TV18's popular show Bull's Eye, Aashish Tater of fortunewizard.com shares his trading strategies for the day.

One can go long on Andhra Bank for a target of close to Rs 89 and stop loss at Rs 83. We feel that at current levels there is a likely possibility that the government might infuse some substantial amount in Andhra Bank which will trigger positive for the stock. Andhra Bank is available at a very attractive dividend yield of over five percent and this is another trigger where we feel that the stock would definitely have limelight. The stock has not even gone up by eight to ten percent and with this particular news there is a likely possibility of asset ratios getting improved from current levels. Allahabad Bank has been under some pressure because of big accounts getting non performing assets (NPA). Last time the management was given benefit of doubt because those accounts may have got recovered but this account have still not been able to recover and this will be taken largely as negative this time after the results. We feel the stock is bottoming out but will definitely test Rs 83-85 zone in a very short span of time. As a quantitative hedge one can go long on Andhra Bank and short on Allahabad Bank.
One may go long on Raymond for a target of Rs 262 and stop loss at Rs 252. There is possibility of some land bank deal in the Thane region which will rerate this particular stock again. It is range bound between Rs 240 and Rs 290 on the upside. Thus this is a safe trade from our side.
One may go long on Neyveli Lignite for a target close to Rs 62.85 and a stop loss of Rs 59. Neyveli Lignite yesterday clarified that Tamil Nadu will be taking over five percent from the government and this will see some interest back into the system because the float will not get increased and then the liquidity float will definitely see some positive trade on this particular stock.