Trading calls from Anand Rathi: Buy Ashok Leyland, Arvind, BPCL; Sell Ambuja Cement

Here are a few stock trading recommendations from Anand Rathi Research


ASHOK LEYLAND: Buy
SL: Rs 81
TARGET: Rs 90

The stock has taken support near the Rs 77 and Rs 78 zones, and during the session, it has recovered sharply towards the 88 levels. It has rebounded from the crucial Rs 77-78 levels as the resistance zone is now acting as a support level. The stock looks strong as the overall trend is positive and after the profit-booking of the last five trading sessions, it is well placed to make higher top – higher bottom. One can buy the stock on small declines, with a stop loss of Rs 81 for an upside target of 90 levels.

ARVIND: BUY
SL: Rs 251
TARGET: Rs 273

The stock has made a piercing line candlestick pattern in the last two sessions as it engulfed most of the losses made on Monday. It has been making lower highs – lower lows from last couple of days and now holding above 266 may negate its negative trend and may give further move towards Rs 273 and Rs 280 levels. One can buy the stock on declines, with a stop loss of Rs 251 for the upside target of 273 levels.
 

BPCL: BUY
SL: Rs 832
TARGET: Rs 888

The stock has moved up, with buying in all the oil marketing companies and also added fresh built up of long position. In the month of June, it made a low of Rs 805 and rallied by more than 20% in the August series; it has recently taken support near Rs 805 zone; so a possibility of a smart upmove cannot be ruled out, led by support-based buying. Traders can buy the stock with stop loss of Rs 832 for an upside target of Rs 888.

 
AMBUJA CEMENTS: SELL
SL: Rs 218
TARGET: Rs 201

The stock has recently failed to cross its multiple hurdles between Rs 257 and Rs 260, and corrected from Rs 260-202 levels. It is falling from last six series, with lower highs price formation. It has a weak price structure and has also broken the weekly multiple support of Rs 215. It has made a fresh 52-weeks lows and sustainance below Rs 215 may drag it to lower levels. There is also a fresh built-up of short positions. It may therefore slide towards Rs 200 and Rs 190. Traders can sell the stock with a stop loss of Rs 218 for a downside target of Rs 201.

The author is a Derivatives Analyst - Equity Research at Anand Rathi
 
Disclaimer: We are suggesting all these stocks to our clients, but no personal holdings.