Pick ICICI Bank, Jaiprakash Associates, HDIL: 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.

The first pick of the day is ICICI Bank. We have seen a completely good performance – inspite of that the price factor did not react favourably, I expect that to finally happen today and finally get its price that it deserve. Particularly given the fact that the next few quarters are going to be rewarding, so ICICI Bank is our first pick with a target of Rs 1109.50 and a stop of Rs 1059.50.
The second pick is Jaiprakash Associates. I believe this is another stock that has seen some unusual amount of shorting in previous week but for very simple reasons that in case interest rates were to come down this is going to be the key beneficiaries given the fact that it does have a fairly large debt on its book. And asset creation it has been utilized its large debt is already yielding some positive return. The stock should come back into reckoning with a target price of Rs 94.80 and a stop of Rs 87.80.
Another pick that I have selected from interest rate sensitive area is HDIL. We also understand that the recent launch that the company is planning particularly are of a huge residential project is likely to yield some very positive cash flows and in case interest rates were to come down then this could benefit itself tremendously from that kind of a downward movement. So HDIL is my pick with a target price of Rs 101.90 and stop of Rs 95.90.
A particular area that I have covered is from the BFSI space and that is Bajaj Holdings & Investment. Likely to be a key beneficiary of the ongoing effort by the government and reform and liberalize pension and insurance sector. Bajaj Holding would benefit from that or possibly from any kind of a rate cut as well, so it has got enough benefits going for itself. Bajaj Holdings with a target price of Rs 888 and a stop loss of Rs 848 is my pick from the BFSI space.