Buy L&T, ITC, Godrej Ind: Saurabh Mittal

In CNBC-TV18's popular show Bull's Eye, Saurabh Mittal, Swadeshi Credits shares trading strategy of the day.

Buy L&T with a target of Rs 1700 and stop loss of Rs 1640. L&T’s results came out yesterday and they were pretty much in line with expectations may be a shade better. But what surprised was better EBITDA margin and the stock rallied yesterday and I expect that buying to continue for the next couple of days so I have a buy call on L&T today.

Buy ITC. It had decent results and the agri business etc had shown pretty decent rise but the stock did not behave yesterday. But I think that should turnaround pretty soon and I think ITC should perform better and it is one of the best picks in the FMCG sector.

Buy Godrej Industries with a target of Rs 315 and stop loss of Rs 303. Godrej results will be out around November 8th but in expectation the stock has rallied quite a bit and it is breaking new highs very close to its 52 week high of about Rs 311 and I expect the buying to continue at least till the results come out and if the results are better than expected then you can see even a further move from there. So I have a buy on Godrej.

Short Bank of Baroda with a target of Rs 770 and stop loss of Rs 800. It came out with its results and the overall banking sector was a little weak yesterday even though the markets turned around and went up. I expect this little weakness to continue on the Banking sector and is also a hedge against my overall plus portfolio with the other three picks. So I am short on BOB.

Disclosure: I don't have holdings in any stocks discussed but may have recommended them to clients.