Buy Natco Pharma, Cox & Kings; sell Jubilant Food: Diwan

In CNBC-TV18's popular show Bull's Eye, Prakash Diwan of Asit C Mehta shares his trading strategies for the day.

One may go long on Natco Pharma. The stock has seen some favourable news flow come especially from the US regulators. Given the fact that all pharma companies which have a strong pipeline of drug discovery molecule which they are likely to expand, they are likely to use to get into new markets. Natco happens to be one of the key beneficiaries of that drive. I believe Natco should do well with a target price of Rs 829 and a stoploss of Rs 759.

One may go long on Cox & Kings. It is one of the premier travel related service provider. We have seen some good numbers come through particularly on the back of sharp forex earnings. Given the fact that the rupee would tend to be probably in a weak spot of sorts going forward for current quarter as well, I believe Cox & Kings should start getting rerated itself in slight upwards territory. I see Cox & Kings continue its move with a target price of Rs 103.50 and a stoploss of Rs 96.50.

One may go long on Godrej Industries. The numbers may not have been very encouraging when it came up last week, but my sense is that Godrej with its diversified business model, some of the key areas of strength that it has started developing itself into as a premier player, the mix of real estate and the consumer and engineering and chemical businesses offers a fairly heavy cocktail for anybody to look at riding in this market. Godrej should do well for the day and probably beyond as well with a target price of Rs 275 and a stoploss of Rs 257.