Buy Godrej Ind, AB Nuvo, United Phosphorous: Merani

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

My first stock call is a buy on Godrej Industries. The stock is a long-term favourite ever since it has broken out above Rs 240 levels, which gives us a long-term target price of Rs 450. In the short-term, it has been making a range of Rs 300 to Rs 320. Once this is taken off, we can see a medium-term move towards Rs 360 to Rs 400. One can buy on the lower end of the range between Rs 300 to Rs 310 levels keeping a stop loss at Rs 295 and a quick target price of Rs 330 in the short-term.
My second stock call is a buy on Aditya Birla Nuvo (AB Nuvo). The stock has been in a range of Rs 700-1,000 for the last three years. Very recently this range has been broken out and the stock is now consolidating. Any retest of the breakout range between Rs 1,000 to Rs 1,060 would be an excellent entry point with a medium-term target price of Rs 1,300 to Rs 1,500. One can accumulate the stock at the current levels keeping the stop loss at Rs 990 and a short-term target price of Rs 1,180.
Buy United Phosphorous. The stock has made a triple bottom around Rs 105-110 levels and over the last two years the resistance band at Rs 125 to Rs 135 has been a problem zone. Every time the stock comes up to this level and corrects heavily. But what we see over the last three-four weeks, it has been making a range of around Rs 120-130. Yesterday the stock attempted to cross Rs 130 levels, which indicates any close above this level will give a quick move towards Rs 130. medium-term target price in that case would be Rs 170. One can accumulate the stock at current levels keeping a stop loss of the recent low at Rs 121.
Buy LIC Housing Finance. This is again a stock which has been range bound for the last one-two years. The lower end of the range has been Rs 240 and the higher band is around Rs 280-285. Recently the stock has broken out of this range which indicates a long-term trend change which gives us a medium-term target price of Rs 360 or even higher. The lifetime high around Rs 299 odd will be a resistance. Once that is taken off, would be a momentum play also. One can accumulate the stock at current levels keeping a closing stop loss at Rs 275. My short-term target price for the stock would be Rs 320.