Buy L&T, SBI; sell Ambuja Cements: Chandan Taparia of Anand Rathi

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

L&T: BUY
STOPLOSS: Rs 1,168
TARGET: Rs 1,235

The stock has been consolidating from last twenty six trading sessions and has formed a strong support base around Rs 1,165 - Rs 1,170 levels. It has been holding above its 50 DMA and after a long accumulation at the support levels it is set to give a consolidation breakout and head towards Rs 1,235 and higher levels. Thus recommending to buy the stock on small declines with the stop loss of Rs 1,168 for the upside immediate target of Rs 1,235 levels.

 
ZEE ENTERTAINMENT: BUY
STOPLOSS: Rs 381
TARGET: Rs 407

The stock crossed and closed above its 50 and 200 DMA after taking support around Rs 283 - Rs 285 zones. The support base is shifting to higher levels, earlier it was taking support around Rs 364 levels then the same shifted to Rs 372 and now the support is at Rs 383 - Rs 385 zones. It has been holding its gains above its 50 weekly moving average on closing basis from last seven weeks. Thus recommending to buy the stock with the stop loss of Rs 381 for the upside immediate target of Rs 407 levels.

 
STATE BANK OF INDIA: BUY
STOPLOSS: Rs 183
TARGET: Rs 195

The stock has taken multiple support around its Rs 181 levels and has been consolidating in a broader range from last five weeks. An upside move led by short covering activities towards Rs 199 - Rs 200 levels cannot be ruled out. Thus it is well placed at the current price juncture to move towards Rs 195 and Rs 199 - Rs 200 levels. Thus recommending to buy the stock with the stop loss of Rs 183 for the upside immediate target of Rs 195 levels.
 
AMBUJA CEMENTS: SELL

STOPLOSS: Rs 235
TARGET: Rs 221

The stock broke its support of Rs 225 levels and failed to hold its recent bounce back move. It had witnessed a recovery from Rs 185 to Rs 236 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 with an open interest addition of around 20% in previous two sessions. Thus one can sell the stock with stop loss of Rs 235 for the downside target of Rs 221 levels.

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