Buy Patel Engineering, says Nooresh Mirani

Buy Patel Engineering, says Nooresh Mirani, AVP Technical, AMSEC Research.

Mirani told CNBC-TV18, "Continuing with my contrarian call on infrastructure companies where I expect strong bounce back in all infrastructure stocks over next few weeks and months. There is also possibility of long term bottom formation in many of the stocks. Patel Engineering as corrected heavily from highs of Rs 1,000 plus in 2007 and is now available at 10% of peak valuation. Generally we see stocks consolidating in the zone of 10% of their peaks."

He further added, "In the near term it has seen a strong correction on the downside without any meaningful pullback. The stock is available at closer to 2009 lows of Rs 100 to Rs 90 zone. We expect the stock to give a strong pullback in short term. Recently it made a couple of lower bottoms in the range of Rs 92 to 89 but it has given a strong divergence on indicators. This indicates the stock may pullback all the way to Rs 130 in the short term. Yesterday the stock closed above the recent highs of Rs 107 giving a confirmation of a trend change. Intraday traders can buy the stock with a target price of Rs 115 keeping a stop loss at Rs 105."