Buy MTNL, TV18 Broadcast, Godrej Ind: Merani

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

Buy Mahanagar Telephone Nigam (MTNL). The stock saw a huge move few months back all the way to Rs 36-38 levels. Post that it has been in a corrective levels, over something around Rs 25-27. It has made a good base around Rs 26 and now it has given a breakout on a small triangle, which gives us a good risk reward point for the stock. From current levels, it should go back to Rs 31 in the short-term and maybe even higher in the long-term. So at current levels, the risk reward is in favour, one can keep a stop loss at Rs 26 and accumulate the stock with a short-term to medium-term view as well. I would expect the stock to even touch up to Rs 40 again in the long-term. Buy TV18 Broadcast. The stock has given a triangular breakout above Rs 35 levels. The volumes have been very supportive for this move and yesterday’s close has been very good, which indicates that the stock should catch momentum towards Rs 40-45 levels in the short-term. My intraday target price for the stock would be Rs 38. One can use any dips to buy to Rs 35-34 levels keeping a stop loss at Rs 33. Buy Godrej Industries. I have been recommending the stock for quite some time now. It was in the range of Rs 300-320. Yesterday, finally that range has been broken out as well as it has been with very good volumes. This is a small flat breakout which gives us an immediate target price of Rs 350. The longer-term picture is much more bullish and we could be looking towards a yearly target of Rs 450. One can accumulate the stock strongly at current levels keeping a stop loss at Rs 310. Buy Sun Pharma Advanced Research Company (SPARC). The stock has already been in a breakout mode and in a strong uptrend. So maybe this could be one move which could take it to Rs 160-180 in the short-term. Given the fact it is a momentum trade, we may keep a stop loss at Rs 138, look towards an intraday target price of Rs 151 and a short-term target price of Rs 160-180. Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group.