Sell Crompton Greaves, Jain Irrigation; buy Dabur: Merani

Written By Unknown on Rabu, 10 April 2013 | 16.02

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

Sell Crompton Greaves . The stock continues to be in a downtrend with lower tops and lower bottoms. Recently the stock has made double bottoms around Rs 88-90 zones which is about to break. Once this breaks we can expect a downmove towards Rs 80 also. Given the fact that the stock is in a downtrend we can continue to take a short position. One can keep a stop loss at Rs 92 and expect an intraday target price of Rs 87.

Buy Dabur India . The stock had been consolidating in the range of Rs 100-130 over the last 6-12 months. The stock has broken out above Rs 130-135 zone. It moved up to Rs 145 and is now testing the levels of Rs 138. This could be a good entry point keeping a stop loss at Rs 135 expecting an intraday target price of Rs 145. A medium to longer term target price would be Rs 160-180.

Sell Jain Irrigation . The stock is in a continuous downtrend although it had supports in the zone of Rs 58-60 which has broken. This indicates there could be much more selloff in the stock and head up towards Rs 50 levels. One can short the stock with a stop loss of Rs 57 and an intraday target price of Rs 53.

Buy Tata Global Beverages . Maintaining the bullish stance on the stock, the stock is making a double bottom at Rs 122 and the intermediate high around Rs 135. One can see momentum above Rs 135 levels in the stock. A stop loss for this trade would be Rs 128. Even a long-term investor can look at the stock at current levels with a target price of Rs 160-180.



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