Top trading ideas by Anand Rathi Research: Buy Sterlite, Aurobindo Pharma

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

NIFTY: SELL 

TARGET: 11,190 

STOP LOSS: 10,980

The Index closed in the positive territory in the last trading session with a breakout above its previous swing high of 11078 levels. The momentum indicators are well into the buy mode on the hourly, daily and the weekly charts which is a positive sign in the short term. The minimum target of this consolidation breakout comes to 11190 levels whereas the support is pegged at 10980 levels.

STERLITE TECHNOLOGIES: BUY 

TARGET: Rs 370 

STOP LOSS: Rs 325

The stock has provided a breakout from the falling channel that was formed in its wave 4. The daily MACD has come into the buy mode which has confirmed the breakout on the upside. The stock has started to form higher tops and higher bottoms which is also a confirmation on an upward breakout, hence we recommend buying this stock for the target of 370 with a stop loss of 325.

AUROBINDO PHARMA: BUY 

TARGET: Rs 611.50 

STOP LOSS: Rs 570

The stock has provided a breakout from a double bottom pattern which is a bullish reversal pattern. The hourly MACD has come into buy mode thus confirming an upward breakout. The stock seems to have completed a wave 2 correction in an expanded flat pattern, hence we recommend buying AUROPHARMA.

SUN PHARMACEUTICAL INDUSTRIES: BUY 

TARGET: Rs 590 

STOP LOSS: Rs 545

The stock has provided a breakout from the falling trend line resistance with a buy crossover in its momentum indicator MACD on the hourly charts. With this breakout, the stock seems to have completed a wave 4 correction and wave 5 up seems to have ensued, hence we recommend buying this stock for the target of 590 with a stop loss of 545.

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