Pankaj Jain of Sunteck Wealthmax recommends to go long on Religare Enterprises, DCB Bank and Reliance Capital.
In CNBC-TV18's popular show Bull's Eye, Pankaj Jain of Sunteck Wealthmax shares his trading strategies for the day.
One can go long on Religare Enterprises. It is one of the serious players with serious chance of getting a new banking licence. What we have seen yesterday is that the stock closed well above that Rs 315 to Rs 325 platform, which it was not able to cross earlier.
One can go long on Development Credit Bank. What we have seen that in the last four to five days it has travelled a lot from levels closer to Rs 44-45 to about Rs 54-55 then back to Rs 43-44. Lot of volatility has been seen in the stock and again what we have seen yesterday is that after stabilizing around Rs 43-44 levels it gave a short-term breakout kind of signals. We believe that positive momentum that was seen in the stock in last one hour of trading yesterday would continue in today's trading and the stock could be headed higher into today's trading.
One can go long on Reliance Capital and even this stock was buzzing in activity yesterday. The company has announced that it has roped in two Japanese partners whereby they would be taking 4-5 percent in their new banking licence identity and Reliance Capital is also one of the serious players bidding for the licence. We have seen one or two major players getting out of the race so probability of these players getting licence increases. Taking these factors into consideration there is a positive momentum which was seen in the stock yesterday. We believe the stock could be headed higher in today's trading session.
One may sell Shriram Transport Finance Corporation. Instead of bidding for the banking licence, Shriram Transport said it would be bidding in other concern, in their consumer finance division. Maybe there could be some kind of knee-jerk reaction to the news in the initial part of trading today and the stock could be headed lower for the initial part. Taking that probable knee-jerk reaction into consideration we have gone short on Shriram Transport just for the day.