Buy ONGC, VIP Inds, Arvind; sell Kaveri Seeds: Anand Rathi

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

VIP INDUSTRIES: BUY
STOP LOSS: Rs 114
TARGET: Rs 122

The stock registered 52 weeks high and gave a price volume breakout after hovering in a range from Rs 112 to Rs 120 levels. It formed a pole and flag pattern on daily chart and now it is well placed to continue the extended move of the positive price pattern. It had witnessed a strong run from Rs 96 to Rs 120 levels and after that it consolidated in a range for 12 days, which is a bullish indication. It gave the highest daily close since 29th January, 2015. So, recommending to buy the stock with the stop loss of Rs 114 for the target of Rs 122 levels.

ONGC: BUY
STOP LOSS: Rs 212
TARGET: Rs 227

The stock gave a price volume breakout after a consolidation of last twelve weeks. It has been holding above its 50 DMA from the last four trading sessions. It is taking support after the weakness of last two years and finding buying interest at the lower levels. Thus, giving us signs of bottoming out and also looks attractive in terms of risk reward ratio. So, recommending to buy the stock with the stop loss of Rs 212 for the target of Rs 227 levels.
 
ARVIND: BUY
STOP LOSS: Rs 280

TARGET: Rs 300

The stock has been making higher highs from last five trading sessions and crossed and closed above its hurdle of Rs 290 levels. It gave the highest daily close of last fifty two trading sessions. It has formed an attractive price pattern and now an up move towards Rs 300 and higher levels cannot be ruled out. So, recommending to buy the stock with the stop loss of Rs 280 for the target of Rs 300 levels.

KAVERI SEEDS COMPANY: SELL
STOP LOSS: Rs 412
TARGET: Rs 388

It failed to cross the immediate hurdle of Rs 430 and is falling from last four trading session. It negated its up move of last seven trading sessions and also broke its major support of Rs 400 levels. It has a tendency of witnessing selling at every resistance levels. Hence, we are recommending in selling the stock on bounce back move with the strict stop loss of Rs 412 for the upside target of Rs 388 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