Buy Mahindra Satyam, Arvind, BF Utilities: Merani
In CNBC-TV18's popular show Bull's Eye, Nooresh Merani, AMSEC Research shares trading strategy of the day.
July 05, 2012 / 14:57 IST
In CNBC-TV18's popular show Bull's Eye, Nooresh Merani, AMSEC Research shares trading strategy of the day.
Buy Mahindra Satyam with a target price of Rs 90 in the day and a stop loss to be placed at Rs 79. Continuing to maintain my bullish stance on the stock with the stock having tested the support zones of Rs 80 yesterday we would expect the stock to breakout above Rs 85 over the next couple of sessions. Even in the medium to long-term our target price would be Rs 100 or higher. So this remains a good investment bet over the next one to three months or even next one year.Buy Arvind with a target price of Rs 84 in the day and a medium-term target price of Rs 95 plus. The stock has fallen from Rs 95 in a straight line to Rs 68. The stock has made a double bottom in this band of Rs 67-68 and the recent highs of around Rs 79-80 has been crossed yesterday. We would expect a quick move to Rs 84 levels as well as in the medium-term we would expect a price of Rs 95. The long-term structure remains very positive and we will have a short-term stop loss placed at Rs 77.Buy BF Utilities with a target price of Rs 460 in the day and a medium-term target price of Rs 500 plus. The stock has been facing a lot of resistance around Rs 440 levels. Yesterday the stock tried to cross Rs 440 and it has been tested almost three times. So it’s been in a channel with upper end at Rs 440. I would expect the stock to breakout above these levels over the next couple of sessions and head to Rs 460 in the day and maybe even look towards Rs 500-550 in the next one to three months.Buy Bank of India with a target price of Rs 370 in the day and a medium-term target price at Rs 400. The stock is forming a triangular pattern with a breakout point at Rs 355-360. The trend line has been tested almost three to four times over the last six months. Given the fact that if it breaks out above Rs 360 we could see a quick move to Rs 400 levels in the medium-term, I would consider every dip to Rs 350 levels as a buying opportunity and keep a strict closing stop loss at Rs 345. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
