Buy Sintex Ind, Escorts, GMDC: Merani

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

Buy Sintex Industries. The stock has reversed upward making a double bottom and the recent high around Rs 69-70 was a major resistance. This has been crossed yesterday and we can expect a move upto Rs 80 in the short-term. My intraday target price for the stock would be Rs 75 and a stop loss to be placed at Rs 68. Buy Escorts. The stock has been sideways for a very long time. That has given a small triangular breakout above Rs 65-66 levels. The volumes are picked up yesterday. This indicates the stock may head up to Rs 75-80 in the short-term. My intraday target price for the stock would be Rs 72 keeping a stop loss at Rs 64. Buy GMDC. The stock is a personal favourite and is a core portfolio pick because if you look at the long-term chart, it is a huge cup and handle which has a target implication of Rs 300 in the medium-term to long-term.
Every time the stock has gone to Rs 200 levels, it has faced a lot of resistance but for the last couple of attempts it has been sustaining around Rs 190-200 levels. This indicates the stock should sharply move upto Rs 230-250 in the short-term. Gulf Oil Corporation has given a flag breakout yesterday. We can expect the stock to touch upto Rs 103 in the short-term keeping a stop loss at Rs 92. The stock has seen a good volume accumulation over the last few months, which indicates even the longer-term picture is shaping up well for the stock.