Top trading calls by Anand Rathi: Buy IDFC, sell Century Textiles

Nifty outlook and top trading ideas by Jay Anand Thakkar, CMT -Assistant Vice President - Equity Research, Anand Rathi Research.

NIFTY: BUY 

TARGET: 10400 

STOP LOSS: 10609

Nifty closed in the negative territory in the last trading session after having broken the bearish head and shoulders pattern on the hourly charts. The momentum indicator has gone into sell mode on the hourly chart with a negative divergence which is a concern in the short term. The Index is likely to see further downside and the minimum target on the lower side comes to 10450 whereas the aggressive target comes to 10400. The resistance on the upside comes to 10609 which is the stop loss of the trade.

CENTURY TEXTILES: SELL 

TARGET: Rs 859 

STOP LOSS: Rs 913

The stock has completed a five wave rise as well as it has formed a bearish head and shoulders pattern on the daily charts. The momentum indicator has also provided a sell crossover thus confirming the downside. A minimum target on the lower side comes to 859 and for the same, the stop loss should be pegged at 913 levels.

SREINFRA: BUY 

TARGET: Rs 40 

STOP LOSS: Rs 31

The stock seems to have completed wave B correction as a three wave corrective fall seems to have got over. The stock had risen in a five wave rise and thereafter corrected in a three wave fall. Now, another five wave rise is expected.

IDFC:  BUY 

TARGET: Rs 42 

STOP LOSS: Rs 38

The stock has provided a breakout from the inverse head and shoulders pattern which is a bullish reversal pattern. The momentum indicator has come into buy mode which increases the probability of an upside. The short-term target comes to 42, whereas the stop loss comes to 38.

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