Buy Mangalore Chemicals, Marico; sell IFCI: Tulsian

In CNBC-TV18's popular show Bull's Eye, SP Tulsian of sptulsian.com shares his trading strategies for the day.

One may buy Mangalore Chemicals and Fertilisers with a day target of Rs 48.50 and stop loss of Rs 45.50. I am continuing this buy call because UB Group is likely to sell their residual stake in the company to a strategic investor which is likely to trigger open offer. On expectation of this we have been seeing the informed delivery based buying happening in the stock for the last one week, which is likely to continue in the near-term as well and hence a buy call.
One may buy Marico with a day target of Rs 215 and stop loss of Rs 202. The company is likely to see a huge beneficiary because of the expected lower coconut prices on account of good monsoon which happened in Kerala. And this company, being the prominent user of coconut, is likely to be the beneficiary. And because of that we have been seeing value buying in the stock for the last two days, which is likely to continue in the near-term and hence a buy call.
One may sell Shree Renuka Sugars with a day target of Rs 14.50 and stop loss of Rs 15.50. Because of the weak outlook on the sugar sector in India as well as in Brazil where the company has a prominent presence and apart from that it is having huge debt of which major portion is in to the forex loan. Weak rupee is going to hamper the working of the company in the near future and hence the delivery based selling and liquidation is taking place into the market on the stock and hence a negative call.
One may sell IFCI with a day target of Rs 20.50 and stop loss of Rs 22. Yesterday we have seen the delivery based selling take place from the prominent NHIs because of the concerns on the working of the company in Q1. Some investigation is likely to take place in the past affair for the company and this weak bias is likely to continue on the stock and hence a sell call.