Top three trading ideas for Monday's session by Angel Broking

Few trading ideas by Sameet Chavan, Chief Analyst- Technical & Derivatives of Angel Broking:

Stock recommendations:

1. Chennai Petroleum  

                                                                        

View: Bullish

Last Close: Rs 416.30

We have been quite upbeat on this stock since last couple of weeks. The stock is clearly enjoying its strong bull run and hence, has been hitting fresh record highs day by day to outperform the benchmark index. On Thursday, the stock prices showed tremendous buying interest to confirm yet another breakout beyond the Rs 400. This is an indication that the stock is likely to extend this relentless rally. Hence, we recommend buying this stock at current levels for a target of Rs 445 over the next 14-21 sessions. The stop loss now should be fixed at Rs 408 on a closing basis.

2. Pidilite Industries

View: Bullish

Last Close: Rs 829.05

This has been one of the rank outperformers since last five years and is still going strong. After a long consolidation, the stock prices managed to traverse the recent hurdle of Rs 822 convincingly. If we look at the volume activity at the time of penetrating this barrier, it was quite decent and hence, indicating strong moves in the forthcoming week. We recommend buying this stock at current levels for a target of Rs 880 over the next 14-21 sessions. The stop loss should be fixed at Rs 792.

3. Engineers India

View: Bearish

Last Close: Rs 152.15

Due to previous week’s fall, the stock prices went on to breach its ‘200-SMA’ support level of Rs 152. As a result, a ‘Lower Top Lower Bottom’ structure on the daily chart has been formed, which is a negative sign for a short term. The ‘RSI’ oscillator too has given a breakdown from its long term support. In last couple of weeks, the stock managed to give a decent pullback move, which should ideally be used as a selling opportunity. Thus, we recommend selling this stock at current levels for a target of Rs 140 over the next 5-10 sessions. The stop loss should be fixed at Rs 159.

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