Buy United Spirits, Gabriel India, Orchid Chem: SP Tulsian

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

Buy United Spirits with a target of Rs 1040 and stop loss of Rs 970. The stock has been moving up on the news or the rumor which is gathering the momentum that UB Group is likely to sell their 26% stake in the company to Diageo at a very hefty valuation of anywhere between Rs 1300-1400 per share which will trigger an open offer and if that happens then stock will get vastly rerated which can take the shares further to new height, may be to the level of 1200-1300 and hence a buy call with a day target of Rs 1040. Buy Gabriel India with a target of 28 and stop loss of 25.25. This stock is seen to be a beneficiary of Maruti plant getting restarted because the supply from the company’s plant was stuck and now that will start the flow which will improve its profitability and working. And in anticipation of that, the stock has witnessed good informed buying also yesterday and hence a buy call. Buy Orchid Chemical with a target of Rs 114 and stop loss of Rs 108. The stock has been seeing value buying coupled with short covering because the stock was seen heavily short after its Q1 disappointing numbers. But even if one take a fundamental call on the stock, the stock looks to have bottomed out much more than what it warrants purely on fundamental basis and hence the momentum of buying is likely to continue and hence a buy call. Buy UB Holdings with a target of Rs 106 and stop loss of Rs 97.50. This is the flagship investment arm of UB Group and this company is holding close to 2 crore 40 lakh shares of United Spirits and over 3 crore shares of United Breweries. And because of huge run up in the value of both these stocks, this investment arm is likely to see the increase in its value which is going to get reflected into its share price which has already touched its 52 week high last week and the same momentum is likely to continue and the stock may see a price of Rs 125 in next couple of months. Disclosure: I don't have holdings in any stocks discussed but may have recommended them to clients.