Chart check: HCL Tech, GAIL, Arvind, BHEL

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

HCL TECH: BUY
STOP LOSS: Rs 715
TARGET: Rs 765

The stock is turning from the oversold territory and making higher top higher bottom from last six sessions. It took support around Rs 705 zones which worked well on 24th December, 2014 and now it is turning from the same levels. It has formed a morning star candle pattern on weekly chart and looks attractive in terms of risk reward ratio. So, one can buy the stock with the stop loss of Rs 715 for the upside target of Rs 765 levels.

 
GAIL: BUY
STOP LOSS: Rs 368
TARGET: Rs 390

The stock is making higher top – higher bottom formation from last thirteen weeks with support shifting to higher levels. Earlier it took support around Rs 335 zones then the same shifted to Rs 355 zones and now the support is around Rs 368 - Rs 370 zones. At the current price juncture it is well placed to head towards 390 and higher levels. Thus recommending to buy the stock with the stop loss of Rs 368 for the upside immediate target of Rs 390 levels.
 
ARVIND: BUY
STOP LOSS: Rs 295

TARGET: Rs 317.50

The stock crossed and closed above its hurdle of Rs 304 zones after the struggle of last seventy one trading sessions. The stock is rising from last eight sessions and witnessing built up of long position with an open interest addition of around 20%. Thus recommending to buy the stock with the stop loss of Rs 295 for the upside immediate target of Rs 317.50 levels.
 
BHEL: SELL
STOP LOSS: Rs 125
TARGET: Rs 117.50

The stock is witnessing selling from last six sessions and holding near the support of Rs 120 zones. It marked a strong recovery in last two series and now lack of buying is dragging the index at the lower levels. It is witnessing built up of short position with an open interest addition of around 10% in last 4-5 sessions. One can sell the stock with the stop loss of Rs 125 for the downside immediate target of Rs 117.50 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