Top picks from Chandan Taparia of Anand Rathi

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

HINDUSTAN UNILEVER: BUY
STOP LOSS: Rs 790
TARGET: Rs 840

It is witnessing support based buying after the decline of last five trading sessions and negated the negative pattern of making lower highs – lower lows on daily chart. It has taken support near to 800 and if manages to hold above 815-820 zones then it may witness a bounce back towards next hurdle of 840 zones. Technical indicators are also supporting our positive view as it is turning from oversold territory with holding the gains even after the decline in broader market. One can buy the stock on small declines with stop loss of 790 for the upside target of 840 levels.

 

TVS MOTORS: BUY
STOP LOSS: Rs 277.50
TARGET: Rs 299

It has taken multiple support near to 275-278 zones and slightly moving upwards with a higher highs – higher lows from last three trading sessions. It has been continuously holding the gains above its 50 DMA and forming a positive price placement for next up swing after the consolidation of last three weeks. It crossed the immediate hurdle of 290 levels and is holding the gains. Thus showing the potential to head towards 299 and higher levels. One can buy the stock on small declines with stop loss of 277.50 for the upside target of 299 levels.

 
 NTPC: BUY
STOP LOSS:Rs 139
TARGET: Rs 151

The stock took support near to 137-138 zones in the beginning of week and recently given a sharp move towards 146 zones with rising trading and open interest activities. It has given highest daily close and looks quite string to continue the positive momentum. It has been making higher top – higher bottom formation from last four series and observing built up of long position with an open interest addition of around 15%. One can buy the stock with stop loss of 139 for the upside target of 151 levels.
 

BANK OF INDIA: SELL
STOP LOSS: Rs 106.50
TARGET: Rs 97.50

The stock has been making lower top – lower bottom formation on daily, weekly and monthly chart. It has a tendency of witnessing selling pressure at every minor attempt to bounce back. It has been breaking all the supports on daily basis and continuously hitting to fresh 52 weeks lows. It has been witnessing built up of short position even at current levels which has bearish implication for further declines. One can sell the stock with stop loss of 106.50 for the downside target of 97.50 levels.
 
Disclaimer : We are suggesting all these stocks to our clients but no personal holdings.

 
Chandan Taparia is a technical analyst with Anand Rathi Retail Research