Buy Jet Airways, SpiceJet, Kingfisher Airlines: Jain

In CNBC-TV18's popular show Bull's Eye, Pankaj Jain of Suntech Wealthmax shares his trading strategies for the day.

I have a long call on Jet Airways. It is an obvious choice with aggressive price target of Rs 679 and I do not have to use much of my grey cells to go long on the stock with the kind of deal that have been proposed by Jet Airways’ board whereby they sell 27.3 million shares at a price of Rs 7.54 and this price is almost 10-12% more than what market has been expecting for long. This should definitely give a leg up to the stock on opening as well as during the day.
We have gone long on SpiceJet and we believe that SpiceJet has potential to go up by about 40-50 percent in next few months and taking the kind of deal, Jet has been able to get from Etihad even SpiceJet should be able to get good deal. There have been rumours in the market that SpiceJet is in talk with few airlines and one of them being a Gulf based airline and because the kind of valuation Jet had been able to achieve and not to forget that fundamentals of the aviation sector in India have been improving.
I have a long call on Kingfisher Airlines though not fundamentally sound long call but this is more a call on psyche of investor, psyche of human behaviour and because the stock has fallen very sharply and in absolute terms the price is very low; investors, traders might think that maybe there could be some sunshine at the end of dark tunnel for Kingfisher Airlines and management of Kingfisher Airlines may try to muster something and maybe some operational basis may come out of the deal.
I have a long call on Unitech. We have seen that most of the real estate stocks are back in reckoning and they have shown a smart pullback after the kind of thrashing the stock got in last 30-40 days. Unitech has rallied sharply from levels closer to Rs 23-24 and a rounding bottom formation has taken place and we believe that stock on technical basis, on basis that high beta stocks have been moving up there are expectations from RBI on May 3, we may see aggressive rate cuts. We believe that Unitech is headed closer to Rs 33 in next few trading sessions.