Buy Dena Bank, Jain Irrigation, Bata: Nooresh Merani

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

I have a buy call on Dena Bank. Maintaining my bullish stance on the public sector undertaking (PSU) banks, one of my favourites is Dena Bank. The stock is available at a strong support of Rs 85-88. From these levels we can expect a bounce back all the way to Rs 110 in the medium-term. This is at a good risk reward entry point and yesterday’s candle indicates a reversal. So one can buy the stock at current levels with an intraday target price of Rs 92 keeping a stop loss at Rs 86. I have a buy call on Jain Irrigation Systems. The stock is about to give a flag breakout above Rs 70. This is a preemptive trade waiting for a breakout above Rs 70. One can accumulate the stock at current levels with a target price of Rs 80 in the medium-term and a stop loss at Rs 66. My intraday target price for the stock would Rs 72. I have a buy call on Bata India. The stock has made a good base and it is about to give a major breakout above Rs 830 levels. That could indicate the stock should head up all the way to Rs 900 in the medium-term. This could be a quick trade for the next two-three sessions with a target price of Rs 850 and a stop loss at Rs 815. I have a buy call on MT Educare. The stock is making a flag pattern, which has a breakout around Rs 103-104 levels. This is yet again a preemptive trade where we expect the stock to breakout over the next few sessions. One can accumulate the stock at current levels, keeping a closing stop loss at Rs 96 and an intraday target price of Rs 108. We could see a lot of momentum into the stock above Rs 103 levels.