Buy Maruti Suzuki, OIL; sell Apollo Tyres: Anand Rathi

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

GATEWAY DISTRIPARKS: BUY
STOP LOSS: Rs 292
TARGET: Rs 312

The stock is making higher top – higher bottom formation on daily and weekly chart and is holding the gains above its 50 DMA. It gave the highest daily close of last seventeen sessions and its support is shifting higher. So, one can buy the stock with the stop of Rs 292 for the upside immediate target of Rs 312 levels.
 
OIL INDIA: BUY
STOP LOSS: Rs 328
TARGET: Rs 350

The stock gave a price volume breakout and surpassed its hurdle of Rs 340 levels after the struggle of last fourteen weeks. It held onto the support at its 50 day exponential moving average from last fourteen sessions and gave the highest daily close of last sixty three trading sessions. Thus giving us an early sign of bottoming and showing a potential to head towards Rs 350 and higher levels. One can buy the stock with the stop loss of Rs 328 for the upside target of Rs 350 levels.

 
MARUTI SUZUKI: BUY
STOP LOSS: Rs 3,810
TARGET: Rs 4,050

The stock gave a price breakout after a consolidation of last seventeen trading sessions and gave the highest daily close of last seventy trading session. It witnessed long built with an open interest addition of around 2% in previous sessions. It has formed an attractive price pattern and holding above Rs 3,910 may take the stock towards Rs 4,050 and higher levels. Thus, recommending to buy the stock with the stop loss of Rs 3,810 for the upside target of Rs 4,050 levels.
 
APOLLO TYRES: SELL
STOP LOSS: Rs 160        

TARGET: Rs 151

The stock is making lower top – lower bottom formation and is witnessing selling pressure at every minor attempt to bounce. In previous two weeks it failed to sustain its Rs 165 levels and started declining with built up of short position as open interest was up by around 10% in the entire series. One can sell the stock with the stop loss of Rs 160 for the downside immediate target of Rs 151 levels.

Disclaimer: We are suggesting all these stocks to our clients but no personal holdings.

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