Anand Rathi recommends buy on TCS, Bata India; Sell on GAIL

Here are a few trading ideas from Chandan Taparia of Anand Rathi

BATA INDIA: BUY

Stop Loss: Rs 472

Target: Rs 510

The stock has been making higher low from last four weeks and holding the gains even after the weakness in broader market. It is also respecting to its rising support trend line and made an immediate bottom near to 460-475 zones. It has a defensive nature and potential to perform even after the weak market sentiment.

TCS: BUY 

Stop Loss: Rs 2,250

Target: Rs 2,410

It is trading near to extremely oversold price territory and looks attractive for a short term bounce back move after the weakness of last 10 weeks. It managed to hold immediate support of 2315 zones and the same support worked well in the month of July 2014. We are here going for a bottom fishing approach so suggesting to buy with strict stop loss of 2,250 levels for a bounce back target of 2,410 levels.

GAIL:: SELL

Stop Loss: Rs 353

Target: Rs 330

It has finally broken the multiple support of 350 zones and witnessed a sell off towards 340 levels. It arrested in the bear grip after a struggle of last eight trading sessions as it failed to move above 362-364 zones. We are expecting this weak structure to continue for next coming sessions so suggesting to sell with stop loss of 353 for the downside target of 330 levels.   

ALLAHABAD BANK: SELL

Stop Loss: Rs 73.50 

Target: 67

The stock has been continuously falling down from last six series and making negative price formation. In the last week, it had failed to cross immediate hurdle of 79 levels and recently has broken the multiple support of 73 levels. It has seen fresh built up of short position and short are already intact from rollover activities from previous series. One can sell the stock with stop loss of 73.50 for the downside target of 67 levels.

Disclaimer: We are suggesting all these stocks to our clients but no personal holdings

Chandan Taparia is a technical analyst with Anand Rathi Retail Research