Buy Bajaj Finserv, Granules, PFC: SP Tulsian

In CNBC-TV18's popular show Bull's Eye, SP Tulsian of sptulsian.com shares trading strategy of the day.

Buy Bajaj Finserv with a day target of Rs 828 and stop loss of Rs 788. This stock has seen the corrections in the last week but from Friday onwards we have been seeing the informed buying again emerging into the stock after company having announced rights issue in the ratio of 1 for 10 shares held at Rs 650 and on the expectations of an EPS of Rs 110 for FY13, share looks to be an undervalued stock purely on fundamental basis and can move to a price of Rs 1,000 in the next four-six months but the day target has been given at Rs 828.
Buy Granules India with a day target of Rs 185 and stop loss of Rs 174. The stock has been witnessing informed buying for the last couple of days on the hopes of some corporate actions likely to get announced, which will be seen quite positive for the stock and considering EPS of Rs 16 for FY13 this pharma stocks even on fundamental basis looks good buying.
Buy Power Finance Corporation (PFC) with a day target of Rs 168 and stop loss of Rs 159. The government is likely to make the changes in the accounting norms which will not increase the non-performing asset (NPA) of the power finance companies and the banks, those who have finance the power projects which are already completed but not operational because of non-availability of the feedstock and this kind of capacity which is lying ideal to the extent of 8,800 mw and since PFC being a big lender of money to these power projects will be seen a direct beneficiary.
Sell Jet Airways with a target of Rs 340 and stop loss of Rs 358. The aviation turbine fuel (ATF) prices have been increased by 7.6% or by more than Rs 5,000 per kilo litre from Saturday and this is a steep hike which we have seen in the last couple of years which is likely to be very damaging and denting the profitability of all the airline companies and hence the stock is likely to behave weak, in fact, for the last couple of days because of the nervousness on non-clearances of foreign direct investment (FDI) in aviation is also keeping the stock weak and hence a sell call.