Sell Crompton, Jubilant Food; Buy IDFC: Cunha

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha, ITI Wealth Management shares trading strategy of the day.

Buy IDFC with a target price of Rs 174.60 and stop loss of Rs 166.10. IDFC has come out with very good results in the past few days and this has seen the stock move up on large volumes with some interested (check) buying and I believe the stock has a momentum to go forward. From a long term perspective it’s also reasonably valued. Sell Crompton Greaves with a target price of Rs 117.50. Crompton Greaves has come out with results that didn’t really excite the market. There still has another two or three quarters to go before we can see a turnaround firmly in place. So, as of now the stock has had moved up in anticipation of good numbers and I believe that with numbers not being as good as anticipated we could likely to see a sell of and that’s why it could move down to its target price of Rs 117.50. Sell Jubilant Foodworks with a target price of Rs 1310. Jubilant Foodworks is a high beta stock and has moved up in the last few days. I believe that there are technical indications which would say that the stock is a bit oversold and overbought and we could look at it moving down further. So, this could reach its target price of Rs 1310.