Bull's Eye: Buy Century Textiles, Dish TV, Patni

CNBC-TV18 brings you a brand new week of Bull's Eye. It's the popular game show where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well.

This week, Ashish Kapur of Investshoppe, Vishal Jajoo of Nirmal Bang and Pankaj Jain of Sunteck Wealthmax battle it out for top honours.

Below their top stock picks and analysis:

Ashish Kapur of Investshoppe

My first call for the day is a short position on Aban Offshore with a target of Rs 410 and a stop loss at Rs 449. The rationale for this is that this is one company which is facing multiple problems on account of huge debt on its balance sheet, very rising interest cost also because of rupee depreciation and along with that lower utilization rates on its rigs and rising cost of plant and machinery. So they are facing a lot of margin pressure.

My second call for the day is a long position on Dish TV with a target of Rs 62 and a stop loss at Rs 56. The logic here is that this is the only listed company in the DTH space and we all know that DTH is likely to be the great business opportunity going forward. The digitization has created an opportunity of converting 70 million household from analog into digital mode. Company has approval to raise more finances for this and as it is in the existing business, out of the six players they are the leading player, they have the highest market share.

My third call for the day is a long position on LIC Housing. The target is at Rs 280 and a stop loss at Rs 257. This is one company which continues to do well despite the overall pressure in the financial services sector. The reason is that housing finance segment is still doing very well and the company enjoys a very strong position in this space. It has a very strong promoter and a very good balance sheet and a very good distribution reach and a brand which is very visible and accepted by the masses. So we continue to believe that this company will deliver strong performance in the quarters coming ahead.

My final call for the day is a long position on Hero Motocorp with a target of Rs 2,120 and a stop loss of Rs 1,955. Latest results exhibited a very strong topline as well as bottomline growth aided by a strong improvement in margins. This company continue to do very well as it has very good expansion plans and it is also looking at building its own in-house engine manufacturing capacity, the company has also with a last couple of quarters forged very strong and reliable technological alliances with various companies around the world.

Disclosure: Our clients have positions in Dish TV, Hero Motocorp & LIC H Finance.

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Vishal Jajoo of Nirmal Bang

My first recommendation for the day is a buy call on Maruti Suzuki with a price target of Rs 1377 for the day. With the company planning a new plant in the state of Gujarat and hiking prices of all its model, there could be some positive movement, which can be seen in the stock of Maruti. Though from a long term perspective we prefer the other players in this segment but there could be a trading opportunity in the stock of Maruti on account of these two announcements.

My second recommendation for the day is a buy call on Century Textiles. If one compares the market cap of the company at less than Rs 3500 crore and if one looks at the businesses