Buy BPCL, GAIL, Taj GVK Hotels: Merani

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

Buy BPCL. The stock has been on a nice uptrend and over the last few months it has made a lot of bottoms in the band of Rs 330 to Rs 335. In the short term it has been facing a lot of resistance around Rs 355 to Rs 360 levels. This indicates that it has been in a range of 30 points. So once it breaks above Rs 360 which it has done yesterday you can expect a move towards Rs 390. Buy GAIL. The stock has been in a falling down channel for the last one, one and half years. It has given a breakout above this channel around Rs 360. Post that it has consolidated in a band of Rs 360 to Rs 390, yesterday the stock has given a breakout of a flag by closing above Rs 393 levels. This gives us an immediate target price of Rs 410 in the short term and Rs 450 in the medium term. Buy Taj GVK Hotels. The stock has seen good volumes over the last few days and a breakout above Rs 70 levels. I expect the stock to catch momentum over the next couple of sessions heading towards Rs 80 levels. Any dips to Rs 72-73 would be a buying opportunity, keeping a stop loss at Rs 70. In the medium term we can expect the stock to head up to Rs 90. Buy Blue Star. The stock has been sluggish for the last 6 to 8 months. Every time the stock comes up to Rs 190 to Rs 210 levels it faces a lot of resistance but the current up move has been with large volumes, which indicates that the stock may break out about these levels and head upto Rs 250 in the medium term. One can buy the stock at current levels of Rs 195 to Rs 200 keeping a stop loss at Rs 190 with an intraday target price of Rs 220.