Buy GSPL, SCI, Bank of India, ONGC: Merani

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

Buy GSPL. The stock has given a triangle breakout yesterday which gives an immediate target price of Rs 90-92 in the short-term. One can initiate a buy position at current levels with a stop loss of Rs 78 and an intraday target price of Rs 85. The stock has been consolidating in this range for almost 3-4 weeks. You can expect the breakout to reach the targets in the next 8-10 sessions. So we could expect a target price of Rs 90-92 in the short-term. Buy Shipping Corporation of India. The stock has been a laggard for the last many, many months. Yesterday the stock has given a flag breakout above Rs 58 levels. The volumes have been nice in comparison to the previous week. You can expect the stock to give a momentum move once it starts sustaining above Rs 60. You can expect a target price of Rs 70 also in the short-term. My intraday target price for the stock would be Rs 63 and a stop loss to be placed at Rs 57.50. Buy Bank of India. The stock had fallen from a high of Rs 350 levels in the last 4-5 months to a low of Rs 253. The stock has since reversed back and gave a good sharp move to around Rs 300-310 levels. After that the stock consolidated making a flag pattern which was broken off yesterday. You can expect a quick move to Rs 320 plus in the short-term. One can initiate a buy position at current levels keeping a stop loss at Rs 303 on a closing basis for target price of Rs 320. Buy ONGC. If you look at the longer term charts for ONGC, the stock has been in the range of Rs 240-250 on the lower end and Rs 290-295 on the higher end. The stock recently tried to breakout above Rs 295, but the attempt was a failure and the stock is back to Rs 280 levels.