Buy HCC, Max India, ITI: Pankaj Jain

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

Long Hindustan Construction Company (HCC) with an aggressive target of Rs 21.90. What we have seen in last two days trading pattern that stock has given very strong breakout signals and the stock could easily go past its 200 DMA, closer to 21-21.50. Realty and constructions stocks are on the move and the move which has begun about 2-3 days back should continue and spill over in next week. Long Max India. With the cabinet giving approval to 49% FDI in insurance sector, it could give further catalysts; further flip to all this insurance related stocks. What we see in this stock, is that Max India has moved very aggressively from levels closer to Rs 180-190 to levels closer to Rs 230. But the kind of momentum we are seeing in the market and with this additional thrust form the government the stock could move. So taking these factors into consideration, I have gone long on Max India. Reliance Capital is my third long call and the kind of movement we have seen in the stock. This is a high beta stock and generally does very well whenever there is serious liquidity flow into the capital markets. Apart form the boost it also gets from this 49% approval of FDI in Insurance sector. One must not forget that Reliance Capital also benefits from solid performance of capital markets. Last, it is a long call on ITI with a stop loss at Rs 24.70, target price of Rs 30.45.