Buy Hindalco, GMDC, Colgate: Merani

In CNBC-TV18's popular show Bull's Eye, Nooresh Merani, AMSEC Research shares trading strategy of the day.

Buy Hindalco. The stock has given a small uptick yesterday and after making a good base around Rs 115 levels the stock seems to be showing some momentum and given the fact that the stock is at the lower end of the band of Rs 105-115 we can expect the stock to go back to Rs 126-130 levels. So this would be a risk-reward trade with a stop loss at Rs 118 and a target price of Rs 126 in the day. Buy GMDC. The stock gets resistance around Rs 195-200 all the time. In the last one year it has attempted those levels manier times. Last time a breakout above Rs 195-200 led to a move to Rs 212 but it ended up as a false move. Yesterday the stock has attempted touching Rs 200 levels. We can expect the stock to breakout over the next few weeks and head up to Rs 220-230 in the short-term. Buy Colgate. The stock has given a triangle breakout and it’s a FMCG stock which has not performed for a very long time in comparison to the sector. We would expect the stock to touch up to Rs 1,220 and it would be a trade for the next 2-3 sessions keeping a stop loss at Rs 1,160. Buy Ranbaxy Laboratories. The stock has made multiple bottoms in the band of Rs 470-480. Recently the stock has given a triangular breakout above Rs 510 levels. From the last few sessions it has been sustaining those levels and giving an indication that the stock may head higher up to Rs 540. One can keep a stop loss at Rs 500 levels and accumulate on all the dips to Rs 505-510. The stock could also give major move once it starts trading above Rs 540 we could be looking at a target price of Rs 600 in the medium to long-term.