Buy Titan Ind, Dr Reddy‘s Labs, Century Textile: Merani

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

Buy Titan Industries. The stock has confirmed the breakout yesterday by closing Rs 230-232 levels. The stock should continue with the momentum and head up to Rs 250 in the short-term. My intraday target price for the stock would be Rs 240 with stop loss at Rs 230. Buy Dr Reddy’s Laboratories. After giving a breakout above Rs 1,700-1,710 levels the stock is tracing back to the support zones. One can expect the stock to reverse from current levels and go back to Rs 1,760 in a day and even Rs 1,800 in the short-term. A closing stop loss to be placed at Rs 1,700 for the stock and given the fact that it is a defensive stock one can hold the stock for the short-term as well as for a medium-term target price of beyond Rs 1,850. Buy Century Textile. The stock has given cup and handle breakout above Rs 335 levels. This gives a target price of Rs 380 in the short to medium-term. Yesterday the volumes picked up well and closed up 4% higher indicating a good strong breakout. As well as on the momentum part the stock continues to rally for two-three days after a breakout. So we can expect a target price of Rs 348 in a day keeping a stop loss at Rs 330. Buy Orchid Chemicals. The stock has been in a downtrend for the last few months. If you look at the stock, every time the stock goes to Rs 105-108 levels it tends to reverse. Recently the stock made a low similar to those bands. On the upside Rs 135 to Rs 140 has been a resistance. So, taking the stock as a buy around Rs 115 with an intraday target price of Rs 120 and even a short to medium-term target price of Rs 135-140, a stop loss should be placed at Rs 110 for this trade.