Anand Rathi recommends buy on Torrent Power, M&M, CESC

Here are a few trading ideas from Chandan Taparia of Anand Rathi for trade today:

BUY TORRENT POWER: The stock is holding the support base and consolidating from last four trading sessions even after the decline seen in the broader market. It has been making higher lows from last three weeks and closed above its 50 DMA. So, one can buy the stock with the stop loss of Rs 171 for the upside immediate target of Rs 183 levels.

BUY M&M: The stock has formed a short term bottom near Rs 1290- Rs 1300 zones. It has a tendency of moving after every steep fall thus showing the potential to witness some buying action and head towards Rs 1406 and higher levels. It held onto the gains even after the decline seen in the broader market and gave the highest daily close of last twenty trading sessions. Thus recommending buying the stock with the stop loss of Rs 1322 for the upside immediate target of Rs 1406 levels.

BUY CESC: The stock has taken support at the lower band of its recent channel and now according to its current price placement it is indicating an up move towards Rs 611 and higher levels. It has added fresh longs with open interest addition of around 7-8% in previous session supporting our positive view in the stock. Thus recommending buying the stock with the stop loss of Rs 573 for the upside immediate target of Rs 611 levels.

SELL UNION BANK: The stock has been making lower highs – lower lows from last five trading sessions and has formed a negative price structure. It gave the lowest daily close since 18th August, 2016. The shorts are intact in the counter from last couple of trading session with open interest addition of around 22%. One can sell the stock on a small bounce back move with strict stop loss of  Rs 138.50 for the downside target of Rs 129 levels.

Disclaimer: We are suggesting these stocks to our clients but not personal holdings.

Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi