Buy Divis Labs, LIC Hsg Fin, GSPL: Parag Doctor

In CNBC-TV18's popular show Bull's Eye, Parag Doctor, Keynote Capital shares trading strategy of the day.

Buy Divis Laboratories. It has been in a steady uptrend for the last several months and has been continuously making new 52 week highs. Our approach is to buy the stocks which are making new highs which signify strength. The stock is expected to continue its upward journey and is headed for an immediate target of Rs 1124 and can be bought with a stop loss of Rs 1079. Buy LIC Housing Finance. It is part of the defensive housing finance space and has been consolidating with an upward bias for the last several months. The stock has recently found support between the Rs 240-250 zone which is where the 200 day moving average is located. Now it has shown strength across the 50 and 100 DMA and is headed for the recent resistance zone around Rs 269 levels and can be bought with a stop loss of Rs 257. Buy GSPL (Gujarat State Petronet) has been making a very strong base between the Rs 65-70 levels for the last several weeks. The stock has now shown strength by crossing a 50-100 day moving average and can be bought with target of Rs 73.5 and stop loss of Rs 68. Sell Apollo Tyres. It has shown weakness by making lower tops and facing strong resistance between the Rs 80-83 zone. The stock has failed to participate in the upward rally and is an underperformer. Apollo Tyres is headed lower to a target around the Rs 75.50 levels where the 200 DMA is located and can be sold with a stop loss of Rs 80.50 Disclosure: I don't have holdings in any stocks discussed but may have recommended them to clients.