Go long on Tata Global, Apollo Tyres, Jubilant Food: Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur of Invest Shopee India shares his trading strategies for the day.

One may go long in Jubilant Foodworks with a target of Rs 1060 and a stop loss at Rs 988. Jubilant Foodworks continues to remain stable despite concerns over valuations. The reason is simple. The market currently is focusing on stocks where businesses are stable, cash rich and by & large defensive in nature. That fits in with Jubilant Foodworks current business very well.
One may go long in Tata Global Beverage with a target of Rs 142 and a stop loss at Rs 130. Tata Global Beverages is mainly in the defensive business and they are also rapidly expanding, increasing their product portfolio. They have entered into various new age drinks, green tea and various other mocktails. The company is also doing very well. The last quarter results were very encouraging and is a great positive trigger in the rapid expansion of their Tata Starbucks joint venture.
One can go long in Mahindra Satyam with a target of Rs 125 and a stop loss at Rs 112. IT sector remains one of the places to hide in this market carnage and within this sector we quite like Mahindra Satyam because gradually their performance is improving and the company is also able to get better clients going forward. We also fell that the impending merger with Tech Mahindra will rerate the stock of both Mahindra Satyam as well as Tech Mahindra and the combined entity would be able to get much bigger clients and perform much better going forward.
One may go long in Apollo Tyres with a target of Rs 63 and a stop loss at Rs 57. The stock has been hammered over the last week or so after they announced the acquisition of Cooper Tire, mainly because of the debt concerns. The company will have to raise resources to meet out this acquisition. There are concerns that a huge amount of debt will dampen the performance going forward. While that maybe true in a very short-term context. We like this deal and we feel that the price reaction has been a little over done.