Buy Aurobindo, DCB; Sell JP Power: Cunha

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha, ITI Wealth Management shares trading strategy of the day.
 
Buy Aurobindo Pharmaceuticals. It has seen a flood of good news coming in over the last few weeks which has seen the stock move up. I believe that it has broken out now from this level and with increased volume, we could see it moving up to its target price of Rs 198.
 
Buy Jain Irrigation with a target price of Rs 89. Jain Irrigation has seen improved volumes and has broken out above this Rs 85 levels. Breakout above Rs 85 level will move the stock upto Rs 89, which I expect that the upward momentum will take it. Even in the medium-term, the stock is expected to have good results. Now that its issues of financing the farmers is more or less settled, we should see this stock move to its upward limit of Rs 89.
 
Buy Development Credit Bank (DCB). DCB is one of the better performing small banks given the opening up of acquisition of banking etc, there could be some increased interest in this bank and in any case, the results are expected today, which is likely to be good. Hence, the buying that we saw yesterday might impact the stock in terms of pushing it to upward momentum and we could see it hit its target price of Rs 53.50.
 
Sell Jaiprakash Power (JP Power). It has been in a continuous downward spiral based on its technicals. Apart from that it also came out with poor results and this is reflected further in a sale off in the stock which I expect to continue today and it should move downwards to hit its target price of Rs 36.50.