Buy Vakrangee Soft, Geometric, Pantaloon: Tulsian

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

Buy Vakrangee Software with a target of Rs 50 and stop loss of Rs 45. Subsidiary of this company has received a five year contract of Rs 1258 crore from Bank of Baroda for financial inclusion work for Rajasthan and Delhi region of 30 banks with tender having floated by Bank of India as a leader bank and this is going to be vastly rerated stock and apart from that we have seen the promoters also increasing their stake in the company and hence a buy call. Buy Geometric with a target of Rs 130 and stop loss of Rs 115. The promoters of the company that is Godrej are seen to be willing to sell their 30 percent stake in the company and yesterday we have seen Rakesh Jhunjhunwala acquiring 4.5 percent stake from an FII increasing his stake in the company close to 15 percent and this is going to create waves in the stock leading to the positive bias for the near term and hence a buy call. Buy Pantaloon Retail with a target of Rs 198 and stop loss of Rs 172. The government has issued a press note for 51 percent FDI in multi-brand retail thereby ending all the uncertainty prevailing in respect to allowing FDI in multi-brand retail. And now the process will begin for induction of the foreign partners in various companies and Pantaloon Retail seems to be the most preferred and the biggest company in the retail space. Buy Provogue with a target of Rs 19.50 and stop loss of Rs 16.50. This company also seems to be a big beneficiary as the promoters have the willingness and the company has its strong presence in Maharashtra for which the state government has also agreed to allow FDI in multi-brand retail and the company wanting to increase its stake and size in this space and hence will be looking to induct a foreign partner quickly and hence a buy call. Disclosure: I don't have holdings in any stocks discussed but may have recommended them to clients.