Buy Karnataka Bank, Havells, JK Tyre: Prakash 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 Karnataka Bank. This is one counter that just refuses to go out of fashion. We have seen the banking pack crumble actually after the RBI policy announcement. But this is one bank that is continuously rising given the fact that the merger possibilities are immense, there is tremendous value is available. So go long on this stock with a target of Rs 136.50 and stop loss of Rs 128.50.

Buy Havells India. We have seen the numbers have been disappointing, the stock has given into the pressure but somewhere I feel going forward the stock could actually revive itself given the fact that the management has guided some very positive turnaround elements in its earnings. So go long on Havells with a target of Rs 579 and stop loss of Rs 555.

Buy JK Tyre with a target of Rs 132.50 and stop loss of Rs 122.50. We have seen some very positive news flow from CCI order come through. So now that overhang is out and JK has reported stellar performance in its Q2 numbers.

Short IRB Infra for a target of Rs 114.50 and stop loss of Rs 124.50. I believe irrespective of what has happened to IRB in the previous sessions the numbers have been fine but the overhang is just not likely to go soon and it could see a lightening from quite a few of institution portfolios and that means a lot of selling is yet to come in.

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