Buy Godrej Ind, Raymond, Fresenius Kabi: Merani

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

Buy Godrej Industries. The stock has been in the range of Rs 305 on the lower end and Rs 330 on the higher end. In the short term it has given a trend line breakout above Rs 310-315 levels. Last three-four days, there were a few tops around Rs 315 which was crossed yesterday which indicates momentum is building up in the stock. Intraday target price would be Rs 330 and once that is taken off, the stock is headed towards Rs 360-400 in the short term. A stop loss should be placed at Rs 310 for this trade.
Buy Raymond. The stock has fallen in a straight line from Rs 450 levels to Rs 350. The stock is highly oversold at current levels and has been trying to make some sort of base around Rs 350 levels. Keeping a stop loss at Rs 350, one can expect a quick bounce towards Rs 370 in the day and a target price of Rs 390 in the short term.
Buy Divi’s Labs. The stock has fallen from Rs 1,200 levels and right now has been making lot of bottoms around Rs 1,040-1,050 levels. One can take a risk reward play at current levels and expect a bounce back towards Rs 1,120 keeping a stop loss at Rs 1,040. This could be a pull back trade for the short term with a view of one week.
Buy Fresenius Kabi Oncology. The stock has made a lot of base around Rs 95-100 levels and has been facing some resistance around Rs 110 over the last few weeks. Yesterday, the stock has seen a good volume activity as well as has been testing the levels of Rs 110. Once that is taken off, we can see a quick move towards Rs 120 in the day. One can keep a stop loss at Rs 102 for this trade expecting a target of Rs 120 in the day and once that is taken off, we can even be looking towards Rs 140 in the short term.