Stock calls by Anand Rathi: Buy Chambal Fert, HUL; sell Aurobindo Pharma

Nifty outlook and top trading ideas by Jay Anand Thakkar, CMT - Assistant Vice President - Equity Research, Anand Rathi Shares and Stock Brokers.

NIFTY: SELL 

TARGET: 11,700 

STOP LOSS: 11,955

Nifty closed in the negative territory in the last trading session and it has broken the uptrend line support. The Index, however, took a minor support near 11,829 levels which can provide some relief rally to the bulls. Still, the price structure is overall negative. Hence, the ideal strategy is to sell for the target of 11,700 with a stop loss of 11,955.

CHAMBAL FERTILIZERS: BUY 

TARGET: Rs 215 

STOP LOSS: Rs 167

The stock has provided a breakout from the downward sloping parallel channel and it has also provided a buy crossover on its daily, weekly and monthly momentum indicators are well into buy mode. With this breakout the stock seems to have started its wave 5 up.

AUROBINDO PHARMA: SELL 

TARGET: Rs 592 

STOP LOSS: Rs 645

The stock has provided a breakdown from the broadening pattern that has been formed on the daily as well as weekly charts. The momentum indicator moving average convergence divergence (MACD) has provided a sell crossover on its daily as well as weekly charts.

HINDUSTAN UNIILEVER: BUY 

TARGET: Rs 1,880 

STOP LOSS: Rs 1,810

The stock has been forming higher tops and bottoms with a clear buy crossover on its daily as well as weekly charts. The stock has provided a breakout from the downward sloping parallel channel with a buy crossover on its daily as well as weekly charts.

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Disclaimer: The analyst may have positions in any or all the stocks mentioned above.