Buy Rel Capital, Indiabulls Financial, OnMobile: Merani

In CNBC-TV18's popular show Bull's Eye, Nooresh Merani, AMSEC Research shares trading strategy of the day.
 
A buy call on Reliance Capital. The stock has given a big cup and handle breakout which gives a target price of Rs 600 to Rs 650 in the medium-term. In the short-term it has made a new high over the last week. The stock is showing a lot of momentum. We can expect a quick target price of Rs 540 and one can keep a stop loss at Rs 470 for this trade.
 
A buy call on Indiabulls Financial Services. The stock has been consolidating for a long time and has given a cup and handle breakout around Rs 250-260 but the stock has moved up slowly over the last few weeks. The way the stock is making new highs one can expect some momentum over the next few sessions. One can expect and intraday target price of Rs 300 and a medium-term target price of Rs 360 to Rs 400. The stop loss for this trade would be Rs 270.
 
A buy call on Indiabulls Real Estate. The stock has given a flag breakout above Rs 76 which gives an immediate target price of Rs 82. One can initiate a long position at current levels, keeping a stop loss at Rs 75 and a target price of Rs 82 in the day. This could be a trade for the next one week.
 
A buy call on OnMobile Global. The stock has been sideways over along period of time over the last six to eight months. It has a major resistance around Rs 50-52 but yesterday’s big move with huge volumes indicates it could be taken off and it could see a quick move towards Rs 55 in the day. Once that is taken off, we can even be expecting a huge move till Rs 80 in the stock. Given the fact that the stock is a momentum play, one can keep a strict stop loss at Rs 45 on a closing basis and an intraday target price of Rs 55 and medium-term target price of Rs 80.