Buy Aurobindo Pharma, Sun Pharma Adv; sell Titan: D Cunha

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha of ITI Wealth Management shares his trading strategies for the day.

One may buy UPL. It has seen improved results and with the global economy improving for agrochemicals especially in South America where UPL has a significant presence and in Europe we expect performance of the company to improve over long-term. We could see the stock hit its target price of Rs 171.50.
One may buy Aurobindo Pharma. It has come out with good quarterly numbers with profit after tax (PAT) of Rs 235 crore and has even announced an interim dividend of 125 percent. It's trading at about 12 times its forward earnings of FY15, which is very attractive considering that the other pharma stocks are trading at a much higher multiple. I expect that the investment buying that is continuing in this stock could accelerate a bit further and we could see the stock move up.
One may buy Sun Pharma Advanced Research Company (SPARC). This stock has seen some interested buying on the back of expected good performance. I expect this buying to continue. We saw the stock rally in the past few trading sessions. I expect the trend to continue and we could see the stock moving up to hit its target price of Rs 147.50.
One may sell Titan Industries. Recently, Reserve Bank of India (RBI) has put in a cap on the ceiling of foreign institutional investors (FIIs) holding in Titan due to which we saw some selling occur in the past few trading sessions. I expect that the selling could continue given that the rupee is continuing to depreciate and gold prices remaining firm. These look negative for Titan in the short run and given the high beta nature of the stock, I expect that the stock could move further down to hit its target price of Rs 226.