Buy and Sell ideas from Anand Rathi for Wednesday's session

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

BUY MARUTI SUZUKI

The stock has taken support at the rising trend line and is showing the signs of bottoming out. It snapped the losses of previous two weeks and has turned from the oversold territory. It gave the highest daily close of last ten trading sessions and also looks attractive in terms of risk reward ratio. So, one can buy the stock with the stoploss of Rs 4,910 for the upside immediate target of Rs 5,210. 

BUY GODREJ INDUSTRIES

The stock surpassed the immediate falling trend line and snapped the losses of previous week. It moved above its 200-DMA and is giving the early sign of bottom formation. The mechanical indicator is also supporting our positive view in the stock and it also looks attractive in terms of risk reward ratio. So one can buy the stock to grab the opportunity of attractive risk reward ratio with the stoploss of Rs 369 for the upside immediate target of Rs 394. 

SELL CADILA HEALTHCARE

The stock negated the positive price formation of making higher highs – higher lows and snapped the gains of last two sessions. It failed to surpass its immediate hurdle of Rs 415 zones and witnessed selling pressure at higher levels. Fresh built-up of short position was seen in the counter with open interest addition of around 2%. One can sell the stock on a small bounce back move with strict stoploss of Rs 415 for the downside target of Rs 390.

SELL MARICO

The stock broke the support of Rs 250 as it failed to surpass the hurdle of Rs 256-258 and started witnessed selling pressure. It has been witnessing selling at every minor attempt to bounce indicating weakness in the counter. It has added shorts of around 5% in last two trading sessions thus supporting our negative view in the counter. We have fundamentally contrary view on the stock but suggesting a trade for immediate profit booking decline towards Rs 243. Thus one can sell with the stoploss of Rs 258 for the upside immediate target of Rs 243. 

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

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