Buy Reliance Capital, Reliance Power, KPIT Cummins: Merani

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

One may buy Reliance Capital. The stock has given a small flag breakout above Rs 370 level, which could take it up to Rs 390 to Rs 395 zone in the short-term. On the longer term charts, it is making a huge cup and handle, which has a breakout above Rs 395-400. We could see a huge up move in the stock once it crosses Rs 400. At current levels, it could be a good risk reward buy with a target price of Rs 390 in the day and a little longer term target of Rs 450 if it crosses Rs 400.
One may buy Reliance Power. This is the continuation from the bullish call mentioned yesterday. The stock has given a good flag breakout, the volumes have picked up and this indicates that the stock may head higher and the momentum could continue for another one or two sessions. This could be a day trade with a target of Rs 78 and a stop loss at Rs 72.
One may buy KPIT Cummins Infosystems. The stock has given a flag breakout, which has a target implication of Rs 132 and Rs 140. The stock has given a good close above Rs 122 level, which confirms a breakout. One can buy the stock at current levels keeping a stop loss at Rs 119 and a target price of Rs 132 in the day.
One may buy United Phosphorous. Over the last six to eight months the stock made a lot of bottoms around Rs 110 and it had a huge resistance around Rs 130. After crossing the resistance, it did go up to Rs 160 level and is retesting the same support zone. After testing the support zone at Rs 132 the stock is about to give an up move all the way to Rs 160. One can buy the stock at current levels keeping a stop loss at Rs 134 and an intraday target of Rs 145.