Buy McDowell Holding, Atlas Cycle, Bajaj Fin: Ashish Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.

My first recommendation for the day is a long on McDowell Holdings with a target of Rs 76 and a stop loss at Rs 70. It has stakes in all the UB Group companies including United Breweries, United Breweries Holdings and Mangalore Chemicals. This group has been facing the flack of negative news for quite sometime and with the FDI being allowed in aviation and some other positive developments, we feel that this trend of negative news has had to change.

My second recommendation for the day is a long on Atlas Cycle with a target of Rs 450 and a stop loss at Rs 410. This company is a major bicycle manufacturer and it also manufactures various bicycle parts. Latest union budget was very friendly for bicycle manufacturers because it raised customs duty both on bicycles from 10-30 percent as well as bicycle parts from 10-20 percent. This really helps the bicycle manufacturers like Atlas, because for several years they have been facing competition of cheap imports mainly from China.

My third recommendation for the day is a long on Alstom India with a target of Rs 430 and a stop loss at Rs 393. It is a very exceptional company because in spite of being in the infrastructure space and mainly catering to power segment this company has managed to report very strong numbers in the previous quarter, mainly aided by a lower revenue base in previous year. Within the power sector though the gas and various other segments are seeing a slowdown, but we are expecting a pick up in the hydro sector space.

My final recommendation for the day is a long on Bajaj Finserv with a target of Rs 825 and a stop loss at Rs 756. It is one of the very few life insurance companies where the growth in business has been substantial, as high as 30 percent compared to a flat trajectory for most of the other peers in this industry and mainly that has got to do with improved distribution channels as well as in non-power products. Also the bank assurance including Bajaj FinServ is likely to continue doing well.