Buy TV18 Broadcast, Tech Mahindra; sell Axis Bank: Merani

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

One may buy TV18 Broadcast. The stock made multiple bottoms in the band of Rs 15-17 and has given a strong reversal signal yesterday with very high volumes. This indicates that the stock may head towards Rs 25 in the medium term. One can buy the stock at current levels and on dips with a stop loss at Rs 18.50 and intraday target of Rs 21.50. Disclaimer: Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group. One may sell Axis Bank. The stock has seen a good bounce back from Rs 800 levels to Rs 1020-1030 levels. Now it is at a resistance zone as well as it is a bit overbought on daily charts. We can expect the stock to dip in the next coming session, so one can short the stock with a stop loss at Rs 1050 and intraday target of Rs 970. One may sell YES Bank. On expected lines the stock saw a reversal from Rs 305-310 levels. Given the strong reversal we can expect the momentum to continue on the downside for another session. So one can short the stock with an intraday target of Rs 270 and stoploss at Rs 290. One may buy Tech Mahindra. The stock continues to remain a favourite on the longer term charts which has a cup and handle pattern and a target implication of at least Rs 1600-1800 in the long-term. The stock has seen a good dip from Rs 1430 towards Rs 1300. Expect some bounce back in the next coming sessions, so one can buy the stock at current levels with a stop loss at Rs 1270 and an intraday target price of Rs 1360.