Buy M&M Finance, Rel Ind Infra, Ceat: Pankaj Jain

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

Long on M&M Finance. Mahindra & Mahindra Financial Services has been one of the most resilient Non-Banking Financial Companies (NBFC). The stock has been consolidating, hovering at levels closer to Rs 195-200. We saw the scrip moving today and fundamentals of the company have been good and this is one of the strongest candidates among top three with probability of getting banking license. Long on Reliance Industrial Infra. This is a high-beta stock. We have seen in today’s trading that most of the high-beta Reliance prefix stocks were on the move. We could see a confirmed flag breakout in this stock. The charts of the stock are looking extremely good and with the kind of movement we have seen in infrastructure related stocks, combination of al three fundamentals, Reliance and technicals could propel this stock into a higher trajectory. Indiabulls Real Estate was moving and we believe that this move is not yet over. There are two-three reasons. One is that market is trying to latch on the idea that we could see some aggressive rate cuts in first week of May by RBI. Another thing is that this Tier-II reality stocks had been disowned and not very many long positions were seen in these stocks, rather investors were still carrying short positions. So a combination of technicals as well as some hope that we could get aggressive rate cut we believe that positive momentum in this stock could carry and we have a price target of Rs 69. Long on Ceat. Tyre stocks were moving in positive direction. One of the basic reason is easing of commodity prices, crude prices, so that should help these companies in coming months, coming quarters. What we have seen in Ceat is that it moved up rapidly today. RSI momentum indicators look very encouraging and we believe that stock could be headed to levels between Rs 105-110 in next few trading sessions.