Top picks by Chandan Taparia: Buy Canara Bank, Bharat Forge, Petronet LNG

Here are a few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

Outlook:

Nifty index opened gap up and registered a fresh lifetime high of 9,158. Recently it witnessed a range breakout and now it has to continue to hold above 9,119 to extend its up move towards 9,250. Overall, it has been making higher top – higher bottom formation and supports are shifting higher from 9,000 to 9,075 on immediate basis. Major market trend is positive till it holds above psychological 9,000 zone.

Stocks:

CANARA BANK

Reco: BUY

Last Close: Rs 295

Stop Loss: Rs 287

Target: Rs 306

It has taken support at 283 and surpassed its falling supply trend line on the daily chart. It has also given a consolidation breakout with positive sector outlook. We recommend to buy on a small decline with the trading stoploss of Rs 287 for a potential upside target of Rs 306.

BHARAT FORG

Reco: BUY

Last Close: Rs 1,046

Stoploss: Rs 1,032

Target: Rs 1,080

It has taken multiple support near to 1,027-1,030 zones and well placed for a fresh leg of upside rally. It looks attractive in term of risk reward ratio as momentum indicators also given a buy signal on the stock. Thus, we recommend to buy on decline with the trading stoploss of 1,032 for a potential upside target of 1,080.

PETRONET

Reco: BUY

Last Close: Rs 392

Stoploss: Rs 382

Target: Rs 411

It has respected to its multiple supports line and surpassed a falling supply trend line. It has also negated its lower top – lower bottom of last 12 sessions. Thus, we recommend to buy with the trading stoploss of Rs 382 for a potential upside target of Rs 411.

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.