Buy SIB, Orchid Chemicals, Mahindra Satyam: 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 a target price of Rs 26.50 and a stop loss at Rs 24. Continuing with my bullish stance on the stock and a support level around Rs 24.50, I would expect a good buying area around Rs 24.50. The last breakout was around this point as well as the volumes were high. We expect the stock to add up to Rs 26.50 and maybe even higher in the medium to long term. Keep a strict stop loss at Rs 24 on a closing basis. Buy Orchid Chemicals with a target price of Rs 128 and a stop loss at Rs 118. The stock has been making a good bottoming out formation as well as the indications over the last two days is good volume built up as well as price movement. This indicates the stock may hit ire over the next few weeks or even the next couple of sessions. One can keep a strict stop loss around Rs 118 and expect a target price of Rs 128 in the short term. Buy Mahindra Satyam with a target price of Rs 83 in the day and a medium term target price of Rs 100. The stock gave a breakout around Rs 80 levels which is a big cup and handle or a triangle breakout which may have implications up to Rs 100 in the medium to long term. The breakout was around Rs 78-80 which is now acting as a support area. I would expect the stock to first move up to Rs 83-86 band and much higher over the next few months. Buy Axis Bank with an intraday target price of Rs 1,070 and a medium target price of Rs 1,150. If we look at the stock, the stock had a major resistance around Rs 1,050 levels. The stock did cross above those levels giving a good breakout. The break out implications would be Rs 1,150 levels but being the first breakout, we would expect the stock to retrace and test the zones of Rs 1,020-1,040.