Buy Divis Labs, Idea; sell Jain Irrigation: Vishal Malkan

In CNBC-TV18's popular show Bull's Eye, Vishal Malkan of malkansview.com shares his trading strategies for the day.

Divis Laboratories has been consistently making higher tops and higher bottoms in the daily charts as well as weekly charts. Pharma sector has been outperforming. So, I recommend a buy with a stoploss of Rs 1430 for targets of Rs 1490.

Idea Cellular has seen a long decline from Rs 170 to Rs 130 levels in the last couple of months. I expect a bounce back to Rs 145 levels in the next near term. For today, I have a buy call with a stoploss of Rs 129 for targets of Rs 138.

Jain Irrigation Systems has been in consistent decline in the last couple of months and forming bearish kind of stick pattern on daily charts. Yesterday also it formed a bearish pattern and a resistance of 20 day moving average. So, I recommend a sell with a stoploss of Rs 60, for targets of Rs 57.

Tata Global Beverage has broken an important support of Rs 140 on daily closing basis. The price has started tagging on the lower bollinger band and relative strength index (RSI) has also gone below Rs 40. So, I expect the decline to continue for next couple of days. Today I have a target of Rs 130.