Bull's Eye: Short Bombay Dyeing, ABB; buy RIL, Glenmark

Bull's Eye, CNBC-TV18's 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, SP Tulsian of sptulsian.com, Ashish Kapur or Investshoppe and Saurabh Mittal of Swadeshi Credits battle it out for top honours

SP Tulsian of sptulsian.com

Short Bombay Dyeing with a day target of Rs 420 and stop loss of Rs 456. The negative call on the stock is largely due to the Bombay High Court order in which one-third of the land of the company’s is spring mill has been ordered to be return to the MHADA and Bombay Municipal Corporation and because the stock is deriving all its value because of the realty assets held by the company and not because of the petrochemical and the textile plant, this seems to be a quite negative for the stock and huge beating can take place in the valuation of the company and hence a sell call.”

Short MTNL with a day target of Rs 21 and a stop loss of 23.50. Again the negative call is because bad Q4 numbers, which has posted a net loss of 1,350 crore on a topline of Rs 850 crore, which translates into a negative EPS of Rs 22 per share for Q4 and Rs 64 negative EPS for FY12 and we have been seeing increase of the losses by the company every quarter and this has resulted into the net worth of the company turning into negative which is seen quite negative and hence a sell call.

Short Essar Oil with a target of Rs 49 and keep a stoploss at Rs 53. The company has posted very poor Q4 numbers with a drop of 88% in its EBIT on YoY basis which has resulted into a net loss of 220 crore before exceptional items and after exceptional items the loss is 500 crore against the PAT of 420 crore in the comparable quarter of the previous year. This is going to be seen quite negative by the market and hence a sell call.

Short IRB Infrastructure with a target of Rs 96 and keep a stoploss at Rs 108. The stock has been continuously going weak for the last whole week and on Friday, we have seen the cash shares having sold by the institutional investor to the extent of 55 lakh shares and since the institutional shareholders are holding about 8 crore shares, this indicates a beginning of exit by them from the company and this exodus or the selling by them is likely to continue which can pressure the share price in the time to come and hence a sell call.

Disclaimer: He doesn't have holdings in any stocks but may have recommended them to clients.

Ashish Kapur or Investshoppe

Buy Graphite India with a target of Rs 98 and keep a stoploss at 90. The company came out with outstanding numbers on Friday where the profit has more than doubled and turnover has also increased sharply from Rs 296 crore to Rs 441 crore. This is a market where individual stock performance are being rewarded so keeping this in mind it makes sense to go long in Graphite India. Going ahead we expect turnover to increase because new capacities are coming into place this year. Production of steel is rising; the demand for Graphite electrodes is likely to remain high.

Buy Glenmark Pharma with a target of Rs 480 and keep a stoploss at Rs 437. The company came out with very good results above our expectations. There was a very smart 34% increase in revenues and 33% increase in profit after tax. Since the market is in a mood to reward stock performances we feel that for the near term Glenmark can be a very good choice for investors and traders. The company is fundamentally also very strong and is coming out of a very long period of consolidation. The driver behind the good results was about 12 product approvals from the US market.

Short Century Textile with a target of Rs 260 and keep a stoploss at Rs 286. The company disappointed investor about reporting a poor set of numbers in this quarter while the turnover slipped due to shut down in the pulp and paper plant. The bottom-line resulted in a loss due to significant slippage in EBITDA margin of 482 points. Going ahead we do not expect any significant recovery in the near future. Given the overall weakness in the market it would be safe to assume that this stock is headed lower.

Short ABB with a target of Rs 680 and keep a stoploss at Rs 740. The rational for going short in ABB is that this company too has disappointed investors with a very poor set of numbers. There was a slippage both on the top-line as well as the bottom-line and slippage was more than what was being factored in by the market. Going ahead we expect pressure to continue. As competition in the entire capital good segment is increasing and also because of Chinese imports the situation is not likely to improve any time soon.

Disclaimer: He has a holding in Glenmark Pharma. Stocks discussed may have been recommended to clients.

Saurabh Mittal of Swadeshi Credits

Buy Reliance Industries (RIL) with a target of Rs 710 and keep a stoploss at Rs 688. The reason is that most of the bad news is out for this stock. The stock has underperformed in the last few months and I think it is ready for a technical bounce at the current price of Rs 697, it looks quite attractive.

Buy Manappuram General Finance with a target of Rs 26 and keep a stoploss at Rs 22. This share has seen a lot of downfall but it moved pretty well on Friday. I think this stock should continue to do well for the next couple of trading sessions.

Buy Nestle with a target of Rs 4,650 and keep a stoploss at Rs 4480. The stock has been steadily moving up over the last – for as long as I can remember Nestle has a steady upturn. It is one of those safest stocks in the market. I would buy Nestle with a target of 4,650 and a stop loss of Rs 4,480.

Buy Man Industries with a target of Rs 107 and keep a stoploss at Rs 97. It has a very strong order book and I think this stock should do well. It is at a critical support level on the charts and I think in the next couple of trading sessions, it should give a decent return.

Disclaimer: He doesn’t have holdings in any stocks discussed but may have recommended them to clients.