Buy Asian Paints, Jet Airways; Sell BHEL, IRB: Anand Rathi

Here are a few trading strategies by Chandan Taparia of Anand Rathi for trade today:


BUY ASIAN PAINTS: The stock surpassed the hurdle of Rs 1140 levels and gave the highest daily close. It has been hovering near its lifetime high levels and accumulating position. It was holding onto the support even after profit taking seen in broader market. Thus one can buy the stock on a small decline with the stop loss of Rs 1095 for the upside immediate target of Rs 1175 levels.

 

BUY JET AIRWAYS: The stock took support at its 50 DMA and snapped the loss of Tuesday’s trading session. It held onto the gains throughout the session even after selling pressure seen in the broader market. It is moving after the decline of last two sessions which has bullish implication. It has also taken support at the lower levels of recent trading range. Thus recommending buying the stock with the stop loss of Rs 570 for the upside target of Rs 606 levels.

 

SELL BHEL: The stock is making lower highs – lower lows from last three sessions and has formed multiple tops. It is witnessing selling pressure from last four trading sessions and broke its support of Rs 135-137 levels. It has been witnessing built up of short position with an open interest addition of around 20% in last couple of trading sessions thus supporting our negative view on the stock. So, one can sell the stock with the stop loss Rs 137 for the downside immediate target of Rs 128 levels.

 
SELL IRB INFRASTRUCTURE: The stock broke its support of Rs 211-210 zones and formed a negative price pattern. It witnessed built up of short position and long liquidation and is also making lower highs – lower lows from last two sessions. We have fundamentally contrary view on the stock but suggesting a trade for immediate profit booking decline towards Rs 203 and lower levels. Thus we are recommending selling the stock on bounce back move with the strict stop loss of Rs 215 for the upside target of Rs 203 levels.

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

Chandan Taparia is Derivatives Analyst - Equity Research at Anand Rathi