Buy UPL, Coal India; sell BHEL, Syndicate Bank: Anand Rathi

Here are a few trading strategies by Chandan Taparia of Anand Rathi for trade today:

BUY UPL: The stock is holding the gains and hovering near its lifetime high levels even after profit taking seen in the broader market. It has formed an attractive price pattern and is now set for a breakout in the unchartered territory towards Rs 631 and higher levels. Thus recommending buying the stock with the stop loss of Rs 595 for the upside immediate target of Rs 631 levels.

 
BUY COAL INDIA: The stock surpassed the multiple hurdles of Rs 337 levels and gave the highest daily close of since 2nd December, 2015. It has been making higher highs – higher lows from last four trading sessions. It snapped the losses made in the earlier part of the month and now according to its current price placement, the stock is showing the potential to head towards Rs 347 and higher levels. So, one can buy the stock with the stop loss of Rs 322 for the upside immediate target of Rs 347 levels.

 
SELL BHEL: The stock failed to surpass its hurdle of Rs 142 zones and started to decline. It witnessed built up of short position with an open interest addition of around 4.5% in previous trading session. It has a tendency of witnessing selling at every minor bounce and expecting the same to continue. Fresh Call writing was seen at Rs 140 and Rs 145 strikes which is keeping its upside limited for next couple of trading sessions. So, one can sell the stock with the stop loss Rs 128 for the downside immediate target of Rs 119.50 levels.

 

SELL SYNDICATE BANK: The stock broke its support of Rs 73 levels and has been making lower highs – lower lows price formation from last four weeks. It has formed a negative price structure and witnessing built up of shorts and long liquidation from last couple of trading session. So, one can sell the stock with the stop loss Rs 76 for the downside immediate target of Rs 68.50 levels.

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

Chandan Taparia is Derivatives Analyst - Equity Research at Anand Rathi