Bull's Eye: Buy DCB, Shree Renuka, Gitanjali Gems

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, Sharmila Joshi of Fairwealth Securities, Nooresh Merani of AMSEC Research and Keval Bhanushali of Keynote Capital battle it out for top honours.

Below their top stock picks and analysis:

Sharmila Joshi of Fairwealth Securities

One can buy Jaiprakash Associates with a target of Rs 82 and a stop loss at Rs 78.60. This stock corrected sharply post the UP election numbers but if you were to take a look at the last quarter numbers they gave me a certain room for comfort given the fact that cement business was doing well, the EPC business was showing good traction. So this is a stock that can be bought with a slightly longer term target of about Rs 104-105 that’s what my longer term expectation would be but for the day I buy with a target of Rs 82.

Buy Ranbaxy with a target of Rs 520 and a stop loss at Rs 501. I wanted to include a pharma name within my stock list largely because I think pharma is a good space to be in this market. The strong Para-IV pipeline that Ranbaxy has of which Lipitor, Actos, Devon is a part of that gives me comfort in Ranbaxy and also the fact that we have seen resolution of the Poanta Sahib and Dewas issue would mean additional revenues from US coming for Ranbaxy which haven’t actually been factored in as of now.

Buy Patel Engineering with a target of Rs 120 and a stop loss at Rs 115.50. Here we have a stock that’s really coming off the kind of December lows, in the carnage we saw it trade significantly lower, its recovering from that. It’s got a fairly good order book and it’s L1 for a lot of fresh orders. So that’s what gives me comfort, I see an improving environment for this entire sector.

Buy DCB with a target of Rs 52 and stop loss at Rs 50. I think Development Credit Bank is one of the fastest growing banks that we have, the kind of numbers that we saw last quarter from the bank where net profit grew by 94%, we had NIIs (Net Interest Income) growing by 21%, the kind of CASA deposit ratio that they had and the fact that going ahead they are focusing increasingly on controlling slippages, improving CASA, that gives me a lot of comfort in DCB. I would give it a longer term target of about Rs 65 but for the day I buy it with a target of Rs 52.

Disclosure: I do not have a holding in any of the stocks discussed but may have recommended them to clients.

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Nooresh Merani of AMSEC Research

Buy Shree Renuka. If you look at the stock it has retraced 61% of this current move from the lows of Rs 23 to 38 plus. Yesterday the stock has given a breakout on daily charts as well as it has seen a good volume tick. This indicates the stock may retrace back to Rs 36-40 levels in the medium term. I would expect a quick move to Rs 36 from here in 1-2 weeks as well as the stock seems to have bottomed out at around Rs 23. So any dips to Rs 33-32 levels is a buy.

Buy Balrampur Chini. The stock was facing a lot of resistance around Rs 57-58 levels for the last 2-3 weeks. Yesterday the stock has broken out above these levels and closed comfortably above Rs 58. This indicates the stock has broken out which would give a target price of almost Rs 70 in the medium term. I would keep an intraday target price of Rs 62 and a stop loss at Rs 56.

Buy Glenmark Pharma with a target price of Rs 330 and a short term target price of Rs 355 to Rs 360. The stock had been sideways for almost many months with lack luster volumes. Yesterday the stock has seen a price and volume breakout which indicates the stock may head up to Rs 360 in extreme short term. Traders may keep a stop loss at Rs 310 for this trade.

Buy Dabur India with an intraday target price of Rs 114 and a short term target price of Rs 122. This is one FMCG stock which has not performed for a very long time. Yesterday the stock has broken out above its resistance of Rs 108. The volumes have picked up yesterday which indicate the stock may now catch momentum. I would expect a short term target price of Rs 122 and dips to Rs 106 to 108 would be a buying zone.

Disclosure: I do not have a holding in any of the stocks discussed but may have recommended them to clients.

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Keval Bhanushali of Keynote Capitals

Buy Patel Engineering. It’s trading at Rs 116. I have a target of Rs 125 and a stop loss below Rs 110.

Gitanjali Gems is trading at Rs 318. I have a target of Rs 350 and a stop loss of Rs 300 for the stock.

Pantaloon is trading at Rs 167. I have a target of Rs 200 and a stop loss below Rs 160.

Disclosure: I do not have a holding in any of the stocks discussed but may have recommended them to clients.