Bullish on Jet Airways, Ashok Leyland, MRF: Devang Visaria

Devang Visaria, Chief Strategist, devangvisaria.com, assesses Ashok Leyland, MRF, Cairn India & Jet Airways stocks on ET Now.

Ashok Leyland, India Cements, Cairn India, Jet Airways, Federal Bank, Paper Products, MRF -- what are your picks and your views on them?

Devang Visaria: Ashok Leyland, you had seen some good spot in yesterday's dying trades and it looks likely to break out from a consolidation of 10 or 12-day kind of a range. I think it’s right for a move to around 69 possibly in the next 2 or 3 sessions. Again, this stock moves up when the rest of the auto pack corrects, especially Tata Motors. You suddenly find Ashok Leyland being in action. So I think it's a good trading pick.

India Cements comes from the cement pack which anyway is underperforming and India Cements is one of the most underperforming stocks in the cement pack as a whole. So we are looking for sell recommendation on this one for targets of 106 and 103, and Cairn India looks likely to give a pullback to around 300 or so which happens to be a strong support so it is trying to capture this small decline back to 300.

On the midcap side, we have recommended buy on Jet Airways. Jet Airways with a stop of 528 we feel has a potential for targets of 560-570. Again these are just trading targets and once above 550, the stock looks very strong. Possibly 625-640 is also possible if you were investors with a one month kind of horizon.

Then we have a buy on Paper Products. This is an interesting stock. It has been consolidating between 54 and 75 for the whole of last one year or so. Right now it looks likely to generate a breakout from our triangular pattern on the weekly charts. Possibly 75 should be a good target which happens to be the 52-week high and on a very long term basis, I would say that the stock has the potential to go to 90-95 over the next, say, 6 to 8 months kind of stuff. So this is a good investment stock and possibly you could keep it on your radar.

Then MRF has been doing all the right things in the tyre space. Looks set for a target of around 8900 to me on medium-term basis. So we have given a target of closer to 8400 because if it were to get passed 7950 and close above that, you would have a very interesting pattern called running breakout to come out on the charts.