Chandan Taparia recommends buy on Dabur, Asian Paints; Sell on SKS Micro, Hero MotoCorp

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

DABUR : BUY

Target: Rs 278

Stop Loss: Rs 259

The stock has been consolidating in a range from last 13 weeks and has managed to hold the support base at Rs 260 zones. It is not ready to give up even after sustain supply at higher levels which clearly indicates strength in the counter. It is defensive counter which is continuously holding the support from last couple of trading sessions. Thus we are recommending buying the stock with the strict stop loss of Rs 259 for the upside target of Rs 278 levels.

 

ASIAN PAINTS : BUY

Target: Rs 853

Stop Loss: Rs 790



The stock has given a price breakout from the consolidation phase of last nine trading sessions and also headed towards it 50 DMA. It is turning from its multiple support zones of Rs 785-800 levels after a recent fall from Rs 892 to 784 in previous four weeks and negated the negative trend of lower top – lower bottom on daily and weekly chart. One can buy the stock with stop loss of Rs 790 for the upside immediate target of Rs 853 levels.

 

SKS MICRO : SELL

Target: Rs 410

Stop Loss: Rs 443

It has a dull price behavior and finding sustained selling near to Rs 455-460 zones from last four weeks. It witnessed a recovery from Rs 360 to 480 levels in previous two series and now pause in momentum indicates an early sign of end of the positive trend. It is continuously adding built up of short position as open interest added by 5% with fall in price in last few sessions. One can sell the stock with stop loss of Rs 443 for the downside target of Rs 410 levels.

 

HERO MOTOCORP : SELL


Target: Rs 2520

Stop Loss: Rs 2653

The stock failed to cross the multiple hurdle of Rs 2670-2680 zones and has been falling down continuously from last five trading sessions. It has been making lower highs – lower lows and also broke its psychological support of Rs 2600 levels. It has been witnessing liquidation of long position and now holding below Rs 2600 levels can continue the selling pressure towards Rs 2520 levels. One can sell the stock with stop loss of Rs 2653 for the downside target of Rs 2520 levels.

 

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

Chandan Taparia is a technical analyst with Anand Rathi Retail Research