Buy Dena Bank, SIB, BF Utilities: Nooresh Merani

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

Buy South Indian Bank with an intraday target price of Rs 26.50 and a short-term target price at Rs 28-30. The stock has given a breakout above Rs 24 levels and I would expect any dips in this zone of Rs 24.50 to be a buying area. I would expect a short-term target price at Rs 26.50 and a medium-term target price at Rs 28-30. The stock has given a good breakout as well as the last move from Rs 24-26 was worth good volumes. So a retracement to the support levels would be a buying area at Rs 24.50. Buy Dena Bank with an intraday target price of Rs 107 and a medium-term target price of Rs 120-140. The stock has given a big cup and handle breakout above Rs 102-103 levels. Yesterday the stock has closed well even in a lackluster market as well as the volumes have picked up. This indicates the breakout has been confirmed and this zone of Rs 100-103 should be a buying area keeping a stop loss at Rs 98 on a closing basis and we may head up to Rs 107 in the day and even higher up to Rs 140 in the medium-term. Buy BF Utilities with a target price of Rs 495 in the day and a medium-term target price at Rs 550. The stock had a major resistance around Rs 450 levels which was taken off a few days back. We expect the momentum to continue into the stock and yesterday the stock has also closed well. So we may take a stop loss of Rs 465 and expect a target price of Rs 495 in the day. On a medium-term basis any dips to Rs 450-470 is a buying area. We may expect much higher targets over the next one year. Buy Orchid Chemicals with an intraday target price of Rs 128 and a short-term target price at Rs 140. The stock has fallen a lot over the last few months but what we see is over the last couple of weeks it was making a bottoming out formation and yesterday was the first price and volume tick which indicates the stock may move up over the short-term as well as may head up higher in the next two to three weeks. Given the fact that the stock is highly volatile and in a downtrend we will keep a strict stop loss at Rs 118 for this trade.