SP Tulsian of sptulsian.com advises selling Jaiprakash Power, Opto Circuit, IVRCL and Crompton Greaves.
In CNBC-TV18's popular show Bull's Eye, SP Tulsian of sptulsian.com shares his trading strategies for the day.
One can sell Jaiprakash Power with a day target of Rs 16.50 and stop loss of Rs 18. Its 400 megawatt hydro power project in Uttarakhand has suspended operations and it is unlikely to catch the season which generally runs up to September-October. And that will hamper the profitability to a great extent. Hence, the negative view on the stock is likely to continue in the near-term and hence a sell call.
One can sell Opto Circuits with a day target of Rs 17.50 and stop loss of Rs 19.30. The stock has been languishing for whole of its series and even now at the lower level we have been seeing the delivery based selling continuing in the stock. And that is likely to have the negative effect because no short covering is likely to be seen by the expiry and hence a negative call.
One can sell IVRCL with a day target of Rs 12.50 and stop loss of Rs 14. All infrastructure stocks are nowadays out of fancy and this company having high debt because of which there is an annual interest burden of Rs 750 crore. And shrinking margins are seen as big concern for the stock and weak trend is likely to continue till expiry and hence a sell call.
One can sell Crompton Greaves with a day target of Rs 70 and stop loss of Rs 76. This stock is looking weakest amongst the capital good stocks. And Q1 working of the company is likely to be very poor because of the dismal performance expected from its overseas subsidiary and hence a sell call.