Buy GSPL, PFC, Gati, Prism Cement: Merani

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

Buy GSPL India. The stock has given a breakout out of a triangle at around Rs 73-74 levels. This indicates a target price of Rs 80-84 in the short-term. Yesterday the volumes were very high which indicates that stock may see momentum over the next few sessions itself. Keeping a stop loss at Rs 72 we could expect an intraday target price of Rs 77. Buy on PFC. The stock is making a small pennant pattern which has a breakout around Rs 184. The stock ahs seen a good bottoming out formation around Rs 170-175 on a retracement after the big move to Rs 200 plus. We would expect the stock to go back to Rs 200-220 in the medium-term. Stop loss would be placed at Rs 175 for this trade and any dips to Rs 180-178 levels would be a buying opportunity. Buy Gati with a target price of Rs 44 and a stoploss at Rs 38. This is a momentum stock and the stock has been making good basing out formation around Rs 35-40 levels. Yesterday the stock has seen a big candle and we would expect the momentum to continue over the next couple of sessions and head up to Rs 44. Buy Prism Cement with a target price of Rs 56 in the short-term and a medium-term target price of Rs 65-70. The stock has been consolidating in the range of Rs 49-54 in the last few days and overall it’s a 3-4 year triangle breakout formation which could happen above Rs 54. We could expect this to happen over the next couple of weeks and once it breaks out we could see a huge move of 10-15% in the next few sessions itself.