Buy CESC, Aurobindo Pharma; sell Punj Lloyd: Merani

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

One may sell Jubilant Foodworks. The stock has seen a good rally from the levels of Rs 950-Rs 970 towards Rs 1130 in the short-term. It is now touching its 200 day exponential moving average at the band of Rs 1140 to Rs 1160. The last two-three tops have been in the zone of Rs 1140 to Rs 1160. One can short the stock at current levels with a stop loss at Rs 1160 and expect a target price of Rs 1080 in the day.
One may sell Punj Lloyd. The stock has been in a downtrend ever since it broke Rs 45 levels. The downtrend remains strong and the recent bottom of Rs 31 if it goes off we could see a move towards Rs 28 levels also in the short-term. This could be a momentum trade with a target price of Rs 30 and a stop loss at Rs 33.50. This is a trade with the view of next 3-4 sessions.
One can buy CESC with a target of Rs 360 and stop loss at Rs 338.
One may buy Aurobindo Pharma. The stock is making a huge cup and handle move which can have a breakout of above Rs 200-205 levels. On the short-term charts it has a lot of resistance around Rs 188 to Rs 191 which if it is taken off we could see a move towards Rs 200. This is a pre-emptive trade with a target price of Rs 200 in a day and stop loss at Rs 185.