Buy Bharati Shipyard, Balrampur Chini, BHEL: Merani

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

Buy Bharati Shipyard. Although the stock has been in a downtrend for a very long time what we see is it has been forming a good base around Rs 60-70 levels. Given the fact that we are seeing a good recovery in the markets we will see midcaps to shine over the next few days. Bharati Shipyard has seen a good volume on Friday which indicates the stock may follow up over the next few sessions. Its given a breakout above Rs 70, my quick target would be Rs 75 in the day and even head up to Rs 80 in the short term, stop loss to be placed at Rs 67 for this trade. Buy Balrampur Chini. The stock has made a few bottoms around Rs 48 and it’s given a trendline breakout around Rs 50-51. A quick target would be placed at Rs 55 in the day and once that is taken off we could see much more higher levels. A stop loss for the trade would be at Rs 50. Buy BHEL. I continue to remain very bullish on this stock given the fact that the five to seven year lows of around Rs 195-200 were seen recently, so the risk reward is very favorable for a long term investor as well. In the short term it had a lot of resistance around Rs 225 for the last few sessions, that has been taken off yesterday and I would expect the stock to move up to Rs 240-250 very quickly. My intraday target price would be Rs 238 and a positional stop loss to be placed at Rs 224. My last stock call is a buy on Aditya Birla Nuvo with an intraday target price of Rs 830 and a short term target price Rs 870. The stock has made a double bottom around Rs 710-720 levels. Recently the stock was facing a lot of resistance around Rs 805 and Rs 810. The stock has broken out above these levels on Friday evening. I would expect the stock to head up to Rs 830 in the day and even higher in the short term. A stop loss to be placed at Rs 790.