Stock picks from Anand Rathi: Buy HDFC Bank, sell Aurobindo Pharma

Here are a few trading ideas from Chandan Taparia of Anand Rathi for Wednesday’s session:

 

BUY DEWAN HOUSING FINANCE CORPORATION: The stock has been holding the gains even after the profit booking decline in the broader market. Overall medium term trend is positive as it has been making higher top – higher bottom formation. Recently it formed a bottom near to 269 mark and now supports are shifting higher. If it manages to hold above 280 mark then an up move may be seen towards 292 then 300 zones. So one can buy the stock with the stop loss of Rs 274 for the upside immediate target of Rs 292 levels.

 

BUY HDFC BANK: It has been outperforming from last four weeks and showing the sign of resilience at the time of profit booking declines. It has recently rallied well from 1170 to 1300 levels and a small decline would give the fresh opportunity to get an entry in the stock. Thus, recommending buying the stock with the stop loss of Rs 1,240 for the upside target of Rs 1,320 levels.

 

SELL JET AIRWAYS: It has failed to surpass 430 zones and started to decline after the recovery of last four weeks. Medium term trend of the stock is negative and recent bounce back is giving an opportunity to sell the stock. We have seen liquidation of long position and a hold below 400 might even attract higher pace of selling for the lower target. One can sell the stock with the stop loss of Rs 418 for the downside target of Rs 394 levels.

 

SELL AUROBINDO PHARMA: It has failed to surpass 720 mark and started to decline with the negative price pattern. It has also broken its support trend line and adding fresh built up of short position. It has been making lower highs from last four series and till this trend is intact, weakness may drag the stock to lower levels. One can sell the stock with the stop loss of Rs 708 for the downside target of Rs 664 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