Bull's Eye: Buy SKS Micro, Unitech; short Dena Bank

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, SP Tulsian of sptulsian.com, Ashish Tater of Fort Share Broking and Saurabh Mittal of Swadeshi Credits battle it out for top honours. Below their top stock picks and analysis: SP Tulsian of sptulsian.com
My first call for the day is a buy call on NMDC with a day target of Rs 162 and stoploss of Rs 154. Infact if you see the budget, lot of hopes have been given to the mining sector in terms of the reduction in custom duties and import duty on many of the equipments. Apart from that the iron and the steel industry has also given the benefits in the form of the sops to the pelletization plant and beneficiation plants and that is going to see good offtake in demand for iron ore which is mined by this company and hence a positive call has been given.
Second call for the day is again a buy call on SKS Microfinance with day target of Rs 149 and stop loss of Rs 139. The budget presented by the Finance Minister on Friday has indicated that microfinance bill will be tabled in this session of parliament and that is going to give a very big relief to the company, which may see the cancellation of the ordinance or the bill having brought by the Andhra Pradesh government which has been creating a big problem for the company. Apart from that the SIDBI has been given 5,000 crore entitlement for tax free bonds will also see large part of that fund flowing in to the microfinance industry, which will be seen positive for the company in terms of fund mobilization or for rediscounting of their books.
Third call for the day is a sell call on Cairn India with a day target of Rs 332 with stop loss of Rs 349. The budget has increased the Cess on crude oil from 2,500 per metric tonne to 4,500 per metric tonne which is going to be seem very negative for the company because company is on the verge of increasing their food production from 1,25,000 barrel to about 2 lakh barrels in the next six months or so. This will significantly dent the profitability because these amounts to the lower realization buy about USD 6 per barrel for the crude oil produced by the company.
Fourth call for the day is a short call on Dena Bank with a day target of Rs 86.50 with a stop loss of Rs 91. Infact all the midcap PSU banking stocks have been seeing a negative view and that resulting into the huge profit booking and long liquidation seen happening. This trend is likely to continue and this stock is looking weak amongst the lot and hence a sell call.
_PAGEBREAK_
  Aashish Tater of Fort Share Broking
The first stock for the day is a technical call from my side. I am going long on JSW Energy for an intraday target of close to Rs 72 with a closing stop of around Rs 64.20. We feel the stock has made a very interesting chart pattern and we have a target of close to Rs 80 mark in next 7-8 days perspective with a same stop loss of Rs 64.20 on closing basis.
The second stock for the day is also a technical call from my side. I am going long on Tilaknagar Industries. We have been recommending this particular stock as a fundamental bet right from the Rs 34 mark. But now we observe that the stock is range bound between Rs 55-65. There is a good bet from short term perspective as it comes closer to that Rs 57-58 levels. However, I am playing long on this particular stock for an intraday target of close to Rs 62 with a stop of around Rs 58.
The third is a fundamental bet from our side. We have been recommending Vakrangee Software right from the Rs 380-400 mark. We still feel that a target of Rs 550-575 is quite achievable given the budgetary announcements. Thus we feel the stock could go and test this Rs 550-575 level in next 3-4 days perspective. However, I am going long for this particular stock for an intraday target of close to Rs 555 levels.
The fourth is also a bet that we have been recommending right from the Rs 230-240 mark. I am going long on Glodyne Technoserve. With the similar chart patterns we feel this particular stock is also a good candidate. We have a fair value target of between Rs 350-380 and we feel the stock pattern can go and test this level in next 3-4 days perspective.
_PAGEBREAK_
  Saurabh Mittal of Swadeshi Credits
My first pick for today is Jai Corp Limited which has seen a steady rise but has fallen in the last couple of trading days. I would buy it at the current price of Rs 94.50 with a target of Rs 100 and a stop loss of Rs 90.
My second stock is another one which has been pretty volatile with the market, its Unitech. I will buy it at current price Rs 29.30 with a target of Rs 32 and a stop loss of Rs 27.
I would be buying Tata Global Beverage. This stock has also seen a decent rally but has taken a hit in the last couple of trading sessions because of the way the market has behaved. Joint Venture with Pepsi and Starbucks gives this stock a lot of potential. I would but at a current price of Rs 113 with target of Rs 120 and a stop loss of Rs 110.
My fourth stock for today is IOB. We have seen decent fall in most of the banks and given the interest rate scenario and the Budget proposal I see the banks to pick up in the next few trading sessions. I would buy IOB with the current price of Rs 97.20, target of Rs 102 with stop loss of Rs 95.