Buy ITC, Power Grid and Century Textiles, says Chandan Taparia of Anand Rathi

Here are a few trading ideas from Chandan Taparia of Anand Rathi for Friday's session

BUY ITC

The stock is holding onto the support base above its Rs 200 weekly moving average and also looks attractive in terms of risk reward ratio. It is giving the signs of bottom formation and is turning from the lower levels. So one can buy the stock to grab the opportunity of attractive risk reward ratio with the stoploss of Rs 223 for the upside immediate target of Rs 238.

BUY POWER GRID

The stock has taken multiple supports at its previous resistance of Rs 180 near its 50 DMA. It is hovering near its lifetime high territory and according to the current price placement the stock is showing the strength to head towards 190 and higher levels. Thus recommending buying the stock with the stoploss of  Rs 178 for the upside immediate target of Rs 190.

BUY CENTURY TEXTILES

The stock is making higher top – higher bottom formation from last two weeks and is set to start its fresh move towards 826 and higher levels. Fresh built up of long position was seen in the counter with open interest addition of around 3% in previous session, thus supporting our positive view in the counter. So, recommending buying the stock with the stoploss of Rs 778 for the upside immediate target of Rs 826.

SELL GAIL

The stock failed to surpass the hurdle of Rs 445-447 and started witnessed selling pressure. It has added shorts of around 3% in last two trading sessions and failed to recover with bounce in the broader market thus supporting our short-term negative view in the counter. Thus one can sell with the stoploss of Rs 447 for the downside immediate target of Rs 420.

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

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