Buy Bajaj Corp, Bank of India; sell YES 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 Bajaj Corp. The stock has given a range breakout between Rs 230-260. This gives us a target implication of Rs 300-350 in the short to medium-term. One can buy the stock at current levels keeping a stop loss at Rs 260 and an intraday target price of Rs 285. One may buy Bank of India. The stock has been in a down trend for a very long time but yesterday we have seen very large volumes which indicates that there is a short-term trend reversal and we can see bounce back for the next couple of days. This could be the trade for the next 2-3 sessions with a target price of Rs 175 in the day and an upside target of Rs 190 in the short-term. A trading stoploss to be placed at Rs 160. One may buy Union Bank of India which has been in a down trend for the last 3-4 months and has given a bit of a reversal signal yesterday with strong volumes. The reversal should last another 3-4 sessions with upside to Rs 135. In the day one can keep a target price of Rs 124 and a stoploss at Rs 113. One may sell on YES Bank. The stock has rallied from a low of Rs 220-230 towards Rs 300 and is a bit overbought on the daily charts. There is a lot of resistance around Rs 305 to Rs 310. One can expect a bit of a dip in the stock for the next 2-3 sessions with an intraday target price of Rs 290 and a stop loss at Rs 315.