Buy Anant Raj, Eros; Short RIL, JSW Energy: Diwan

In CNBC-TV18's popular show Bull's Eye, Prakash Diwan of Prakash Diwan's Wealth Circle shares trading strategy of the day.

Buy Anant Raj Industries. It is a counter that has been in action for quite a while and there is positive news flow around this stock regarding sale of one of the ceramic tile unit which they are going to be using for development of real estate which is a huge positive. I expect Anant Raj to do well and I have kept a target price of Rs 84.50 and stop loss of Rs 77.50 for Anant Raj.

Buy Eros. Given the fact that we are getting into a vacation season of sorts and this festival season does see a lot of footfall go up. We have already seen the other players in this segment like PVR and Inox benefit, Eros should also do well. Buy Eros with a target of Rs 169.90 and stop loss of Rs 154.90.

Short Reliance. Given the negative news flow that we have seen I believe the stock should see some sort of initial reaction which could pull it down. Of course whether it stays there or not depends on the way the management tackles the entire controversy. But today it is a short call on Reliance with a target of Rs 770 and stop loss of Rs 820.

Short JSW Energy. We have already seen it run up quite a bit in the last few sessions in expectation of some stellar results which are due today. But my sense is there is a lot of forex income that probably makes up for the income this time around which means operational income may not be as robust as what we are expecting and that could be a disappointment, we could see the stock lose off some ground. JSW Energy is a short with a target price of Rs 61.50 and stop loss of Rs 67.50.

Disclosure: I don't have holdings in any stocks discussed but may have recommended them to clients.