Top buy, sell trading ideas from Chandan Taparia for today's session

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

BUY AMBUJA CEMENTS

The stock has negated the immediate negative trend and has given the signs of bottom formation. It has turned from the lower levels and has taken support at its monthly support at the trend line. It looks attractive in terms of risk reward ratio and is showing the potential to head towards Rs 208 and higher levels. So one can buy the stock to grab the opportunity of attractive risk reward ratio with the stop loss of Rs 196 for the upside immediate target of Rs 208.

BUY HCL TECH

The stock is making higher top-higher bottom formation from last three weeks and is set for a fresh rally. It moved above its 50-weekly moving average and is witnessing buying interest with its other IT peers. It held onto the gains even after profit taking seen in the broader market. Thus, one can buy the stock with the stoploss of Rs 799 for the upside immediate target of Rs 850.

SELL AMARAJA BATTERIES

The stock has been making lower highs from last three weeks and has formed a negative price structure. It is witnessing built-up of short position with open interest addition of around 5% thus supporting the negative view in the counter. One can sell the stock on a small bounceback move with strict stoploss of Rs 910 for the downside target of Rs 852.

SELL CEAT

The stock witnessed selling and broke its support of Rs 1225. It has seen huge built-up of short position with open interest addition of around 10% in previous session, thus supporting our negative view in the counter. It has been making lower highs-lower lows from last two trading sessions.  So, one can sell the stock with the stoploss of Rs 1250 for the downside immediate target of Rs 1170.

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

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