Chart Check: Dabur, M&M, Syndicate Bank, Ajanta Pharma

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


BUY DABUR: The stock held onto the support at its 50 DMA even after huge profit taking seen in the broader market. It has been making higher top – higher bottom formation from last two weeks. It surpassed the hurdle of Rs 295 levels and according to current price placement of the stock if follow up buying continues then a possibility of an up move towards Rs 306 and higher levels may be seen. Thus one can buy the stock with the stop loss of Rs 286 levels for the upside target of Rs 306 levels.

BUY M&M: The stock has taken support at its support trend line and has formed a short term bottom near Rs 1290-1300 zones. It has a tendency of moving after every steep fall thus showing the potential to witness some buying action and head towards Rs 1405 and higher levels. It held onto the gains even after the decline seen in the broader market and gave the highest daily close of last seventeen trading sessions. Thus recommending buying the stock with the stop loss of Rs 1320 for the upside immediate target of Rs 1405 levels.

SELL SYNDICATE BANK: The stock broke its support of Rs 69 levels and has been making lower highs – lower lows price formation from last three trading sessions. It has formed a negative price structure and witnessing built up of shorts with an open interest addition of around 10% in last couple of trading sessions and shorts rollover was also seen from previous series. Thus supporting our negative view in the counter. So, one can sell the stock with the stop loss Rs 70.50 for the downside immediate target of Rs 62.50 levels.

SELL AJANTA PHARMA: The stock is making lower highs – lower lows formation from last four trading sessions. It has formed a negative price structure and drifted below its support of Rs 1890-1900 zones. It has seen built up of short position with open interest addition of around 8% in last session of which may cause a decline towards Rs 1824 and lower levels. One can sell the stock on a small bounce back move with strict stop loss of Rs 1945 for the downside target of Rs 1824 levels.

Disclaimer: We are suggesting these stocks to our clients but not personal holdings.

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