Buy Arvind, Bata India; sell IOC: Parag Doctor

In CNBC-TV18's popular show Bull's Eye, Parag Doctor of Keynote Capital shares his trading strategies for the day.

Arvind has made a very strong base formation between Rs 75 and 85 levels over the last several months and now has broken past the resistance which was there at Rs 85 levels. In the immediate term Arvind is heading to a target of Rs 90 and can be bought with a stop loss of Rs 84. In the medium-term the base formation could see Arvind heading to Rs 95-100 levels. Bata India has shown strength in this week after crossing the longer term 200-day average which is around Rs 850 levels. The stock is still showing upside momentum and is likely to head to a target around Rs 940. It can be bought with a stop loss of Rs 860. Indian Oil Corporation (IOC) has been in a downward trend after it broke past longer term resistance around Rs 300 levels. The stock has headed lower to an immediate target around Rs 270 levels and can be sold with a stop loss of Rs 285. IOC is to head even lower to the base between Rs 250-260 levels in the medium-term. Rural Electrification Corporation (REC) has been facing lot of selling pressure around Rs 230 levels which is where the longer term 200-day average exists. The stock can be sold with a stop loss at Rs 225 and an immediate target of Rs 210. In the medium-term REC could head even lower to between Rs 190-200 levels.