Top trading calls by Anand Rathi: Buy Pidilite, United Spirits; sell IGL

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

NIFTY: SELL

TARGET: Rs 10,728

STOP-LOSS: Rs 10,980

Nifty closed in the negative territory in the last trading session and the Index continues to form lower tops and lower bottoms with a sell crossover in its momentum indicator MACD on the daily, weekly and monthly charts. The Index has an immediate resistance at 10,980 whereas support is found at 10,728, hence we continue to maintain our short-term bias negative.

PIDILITE: BUY

TARGET: 1,354

STOP-LOSS: Rs 1,237

The stock has started to form higher tops and bottoms with increase in volumes which is quite positive for the stock. It  seems to be consolidating within a range of 1,300-1,220 which is expected to provide a breakout on the upside.

UNITED SPIRITS:  BUY

TARGET: Rs 615

STOP-LOSS: Rs 570

The stock seems to be consolidating within a range of 600-570 which is likely to provide a breakout on the upside. The momentum indicator MACD has provided a buy crossover on the hourly charts as well as weekly charts which is quite positive going forward.

IGL:  SELL

TARGET: Rs 275

STOP-LOSS: Rs 310

The stock has formed a bearish head and shoulders pattern which is a negative sign in the short term. The momentum indicator MACD is also in sell mode on the daily as well as weekly charts, hence we recommend selling this stock.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.