Buy Godrej Ind, BHEL, Tech Mahindra: Merani

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

Buy Godrej Industries. Continuing with my bullish stance on the stock what we saw yesterday was the stock tested the support levels of Rs 245 to Rs 247 and has bounced back to Rs 250 plus levels by closing. Given the fact that the stock is holding on to the break-out levels of Rs 245 we would expect this move to continue towards Rs 260 in a day and upto Rs 280 in the short to medium term. We would now place our stop at Rs 245 with a target of Rs 260 in the day. Buy BHEL with a target price of Rs 236 in a day and medium term target price of Rs 270. The stock made a low around Rs 200-Rs 205 levels which is very close to its 2008-2009 lows at Rs 195 to Rs 200. Given the fact that it was a first break-out we could expect a retest of the zones which was done yesterday at Rs 220 lows. The stock has bounced back to Rs 230 indicates the stock will start back a new move towards Rs 250. My intraday target price for the stock was Rs 236 and a stop loss at Rs 220 and any dips to Rs 225 levels would be a buying opportunity. Buy Tech Mahindra with a target price of Rs 725 in the day and the medium term target price of Rs 800. The stock gave a technical break-out around Rs 680 to Rs 700. Recently the stock has tested similar support levels at Rs 690 and has reversed. I would expect the stock to continue to find support in this zone and investors can accumulate the stock at Rs 680 to Rs 700 levels. With a closing stop loss at Rs 685 and a medium term target price of Rs 800. Buy Coal India. The stock has made a lot of bottoming out formation in the band of Rs 300 to Rs 320. Post that the stock has had a major resistance around Rs 370. Recently the stock moved up from Rs 300 to Rs 360-Rs 365 levels and now has made a flag pattern. Yesterday the stock crossed out of the flag pattern which gives an immediate target of Rs 369 for a trader and maybe even higher can come out of it if the stock crosses Rs 370. A stop loss to be place at Rs 355 for this trade.