Buy CESC, IDFC, Polaris, Aban Offshore: Merani

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

Buy CESC. The stock has given a cup and handle breakout above Rs 310 levels. This gives us an immediate upside to around Rs 330 to Rs 350 in the short term. The last two days the volumes have picked up. This indicates that the volumes have picked up in the direction of breakout. So the stock can move up faster in the next couple of weeks itself. Any dips to Rs 305 to Rs 310 should be a buying opportunity keeping a closing stop loss at Rs 300 and a target price of Rs 350 in the medium term, whereas an intraday target would be placed at Rs 325. Buy IDFC. The stock has been making higher tops and higher bottoms and it has given a breakout out of a triangle at Rs 137 levels. Any dips to Rs 137 to Rs 140 would be a buying opportunity- keeping a stop loss at Rs 133 with a target price of Rs 145 in the day and a medium target price of Rs 170 to Rs 180. Buy Polaris – with a target price of Rs 127 in the day and a stop loss at Rs 118. The stock has seen a huge surge in volumes yesterday and apart from that the stock has fallen a lot over the last few months. We can expect a retracement to Rs 140 levels in the short term. We tend to prefer a lot of midcap IT stocks because all of them are making strong formations which can give a decent upside. Any dips to Rs 120 to Rs 123 levels would be a buying opportunity in the stock with a stop loss at Rs 118. Buy Aban Offshore. The stock made multiple bottoms in the band of Rs 320 to Rs 340. Post that we did see the stock move up to Rs 440 levels and since then it saw a huge correction due to its removal from futures. We expect the stock to continue and hit back the same levels of Rs 440 in the short term and once that is taken off it could be a major trend change in to the stock.