Buy Karnataka Bank, Bombay Dyeing, Unitech: Manav Chopra

In CNBC-TV18's popular show Bull's Eye, Manav Chopra of Nirmal Bang shares his trading strategies for the day.

One may buy Karnataka Bank. The stock after a sharp decline has formed a bullish head and shoulder pattern on the intraday charts and has managed to give a close above the neckline which is a bullish signal. The volumes are looking very supportive and the stock has also managed to close above its short-term moving averages. One can maintain a buy in the stock, keep a stoploss of Rs 93.50 for an upside target of Rs 105.

One may buy Bombay Dyeing and Manufacturing Company. The stock has observed a sharp decline and since couple of trading sessions after a short-term consolidation stock has managed to give a decisive close above the Rs 57 levels which is a very good signal. On the downside Rs 56 will act as an immediate support, so one should maintain a buy on dips approach. The volumes are also looking very supportive and we expect at least a retracement of 50 percent of its recent declines.

One may buy Unitech. The stock, since the past couple of trading sessions has been consolidating in a very tight range of Rs 12-13 band and going forward I think we expect the stock to breach on the upside. The volumes are looking quite supportive and there are also several bullish candlesticks formed on the daily and the weekly charts which is indicating that there is limited downside from the current levels. One can maintain a buy in the stock, keep a stoploss of Rs 12.20 for an upside target of Rs 14.