Buy Ceat; sell Tech Mahindra, Titan: Chandan Taparia of Anand Rathi

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

CEAT: BUY
STOPLOSS: Rs 1,045
TARGET: Rs 1,110

The stock gave a price volume breakout and is holding the gains above its 50 and 200 DMA even after negativity witnessed in broader market. It had rallied from Rs 922 levels to Rs 1,109 levels and now after a consolidation of last twenty two trading session it is again set to give a fresh rally towards Rs 1,110 and higher levels. It has formed a pole and flag pattern on weekly chart. Thus recommending to buy the stock with stop loss of Rs 1,045 for the upside immediate target of Rs 1,110 levels.

SHRIRAM TRANSPORT FINANCE COMPANY: BUY
STOPLOSS: Rs 910
TARGET: Rs 966

The stock is continuously holding the support base and respecting its 13 DMA on closing basis from last 25 trading sessions. It is gradually rising from last three trading sessions even after volatility swing being seen in the broader market. Now at the current price juncture it is well placed to give a consolidation breakout and head towards Rs 966 and higher levels. So we are recommending to buy the stock with stop loss of Rs 910 for the upside immediate target of Rs 966 levels.

TECH MAHINDRA: SELL

STOPLOSS: Rs 465
TARGET: Rs 438

The stock broke its support of Rs 455 levels and has been witnessing selling pressure from last three weeks. It has been continuously witnessing selling pressure at every resistance levels and forming lower top – lower bottom formation. The stock had witnessed a recovery from Rs 407 to Rs 500 levels in the previous series but the recovery was short lived and it again started to decline with active shorts in the counter. It has been making lower highs from last four trading sessions. Thus one can sell the stock with stop loss of Rs 465 for the downside target of Rs 438 levels.

TITAN COMPANY: SELL
STOPLOSS: Rs 355
TARGET: Rs 330

The stock failed to cross and hold above Rs 350 levels and started to decline with short being active in the counter. It failed to continue the up move witnessed in previous week and the recovery was short lived and also broke its support of Rs 342 levels. Thus one can sell the stock with stop loss of Rs 355 for the downside target of Rs 330 levels.

Disclaimer: We are suggesting all these stocks to our clients but no personal holdings.
 
Chandan Taparia is a technical analyst with Anand Rathi