Buy Sadbhav Engg, JSW Energy, Federal Bank: Kunal Bothra

In CNBC-TV18's popular show Bull's Eye, Kunal Bothra of LKP shares his trading strategies for the day.

For the last couple of days and especially yesterday the real estate pack, the midcap and the smallcap real estate pack showed good traction. Indiabulls Real Estate being one of the stronger stock or the midcap stock in this category also mentioned good attention and also the fact that on daily chart is forming an inverse head and shoulder pattern formation.

One may buy Sadbhav Engineering. My sense is that the cup and handle in bullish formation, which was forming in the daily charts, has now become fulfilled. The volumes are the ones which are critical for any breakout to happen and the breakout for this stock is very strong because it is backed by good volumes as well.

One may buy JSW Energy with a price target of Rs 61 and stoploss at Rs 55. For the last full month of December, the stock had been in a range of Rs 57 to Rs 52 wherein it touched Rs 57 couple of times and managed to come back again below Rs 51-52 odd levels but more or less the consolidation seems to be getting over. The volumes are building up; for the last couple of days the volumes have decent and the momentum indicators are now which were more or less consolidating.