Top trading ideas from Anand Rathi; Buy Tata Motors, NTPC, Sun Pharma

Here are a few trading ideas of blue-chip companies from Chandan Taparia of Anand Rathi:

NTPC: BUY
STOP LOSS: Rs 138
TARGET: Rs 149

The stock has made a classical head & shoulder pattern on weekly chart and crossed its neckline hurdle of Rs 140 zones. It has been moving upwards from last four weeks with sustained buying interest and recent price structure may continue to take it to higher levels. It has been holding strong as trading above 50 DMA and looks strong to head towards Rs 150 zones. One can buy the stock with stop loss of Rs 138 for the upside target of Rs 149 levels.

Tata Motors: BUY
STOP LOSS: Rs 382
TARGET: Rs 404

The stock has managed to cross its immediate hurdle of Rs 387 zones and reclaimed its 50 DMA. It fell down from Rs 432 to Rs 360 zones and after the recent consolidation a bounce back move towards its 61.80% retracement cannot be rule out which comes near to Rs 404 zones. One can buy the stock with stop loss of Rs 382 for the upside target of Rs 404 levels.

Sun Pharma: BUY
STOP LOSS: Rs 785
TARGET: Rs 835

It has crossed and closed above immediate hurdle of Rs 805-810 zones with highest daily close in last 35 trading sessions. It has seen fresh built up of long position as added open interest by more than 8-10% in last couple of trading sessions. It has made multiple support and now supports are shifting to higher levels from Rs 700 to Rs 725, Rs 732 and now near to Rs 785 zones. Traders can buy the stock with stop loss of Rs 785 for the upside target of Rs 835 levels.

PNB: SELL
STOP LOSS: Rs 125
TARGET: Rs 117

It failed to cross immediate hurdle of Rs 124-125 zones after the continuous struggle of last two weeks. It has been trading below immediate support of Rs 122 and not ready to recover even after the recovery in broader market which indicates weak undertone of the stock. Overall trend is negative as sustained selling pressure is being witnessed in the stocks and shorts are intact as it has been falling from last couple of weeks. Traders can sell the stock with stop loss of Rs 125 for the downside target of Rs 117 levels.

Disclaimer: We are suggesting all these stocks to our clients but no personal holdings.

Chandan Taparia is a derivative and technical analyst with Anand Rathi