Buy Presistent Systems, Bank of India: Merani

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

Buy Persistent Systems. We like the midcap IT space and after a good breakout on Hexaware this is another stock which has given a good breakout out of a flag pattern around Rs 415 levels. This gives an immediate target price of Rs 440 and a medium-term target price of Rs 480. One can keep a stop loss at Rs 400 for this trade and buy in the range of Rs 410 to Rs 415. Buy Bank of India. The stock has fallen non-stop from a price of Rs 350 to Rs 250. It is highly oversold on the short-term charts as well as in the last two bottoms around Rs 265 and Rs 255 it has shown a lot of positive divergences on indicator which indicates any pullback from current levels could be sharp and up to Rs 285 to Rs 300 in the short-term. My intraday target price for the stock would be Rs 270 and keeping a stop loss around Rs 258. Buy MindTree. The stock has given a breakout couple of days back and yesterday the stock has closed well indicating the momentum has started and this could head up much higher in the short-term. An ideal target price for the flag pattern which broke out around Rs 715 to Rs 725 would be around Rs 785 levels. One can keep a stop loss at Rs 725 and buy the stock on current levels as well as on any dips to Rs 735. In the medium-term we can even expect a target price of Rs 850 to Rs 900 on the stock. Buy Delta Corp. the stock has given a small triangular breakout yesterday with a large price and volume tick which indicates the stock should give at least 5-7% return from current levels and generally the stock is a momentum stock, so whenever it breaks out it tends to give a good sharp move in the next few sessions itself. So we can expect a target price of Rs 70 in the short-term keeping a stop loss at Rs 61.