Trading ideas: Buy TCS; Sell Tata Steel, Adani Ports

Here are a few trading ideas from Chandan Taparia of Anand Rathi:

SHRIRAM TRANSPORT FINANCE: BUY
STOP LOSS: Rs 898
TARGET: Rs 972

It gave a breakout on daily chart and crossed and close above its hurdle of 929 levels. It gave the highest daily close since 9th July, 2015, above its 50 DMA and headed towards its 200 DMA. It has been making higher highs from last five weeks and managed to hold its positive move even after the volatility in broader market. Thus recommending buying the stock with the stop loss of Rs 898 for the upside target of Rs 972 levels.

TCS: BUY
STOP LOSS: Rs 2,500
TARGET: Rs 2,666

It has been consolidating in a broader range from last couple of weeks but the support is shifting slightly to higher levels which indicates that every decline near the support is a buying opportunity. Even though, it is stuck in a range but still managed to sustain the gains above its 50 DMA. Thus recommending buying the stock with the stop loss of Rs 2,500 for the upside target of Rs 2666 levels.

TATA STEEL: SELL
STOP LOSS: Rs 211
TARGET: Rs 197

It has been making lower highs from last two weeks and is hit fresh 52 weeks low and failed to recover even after the recovery in the broader market. It has formed a weak structure and has been making lower top – lower bottom formation. It is witnessing built up of short position and these shorts are intact in the counter. One can sell the stock with stop loss of Rs 211 for the downside target of Rs 197 levels.

ADANI PORTS: SELL
STOP LOSS: Rs 312
TARGET: Rs 291

In the last week it failed to cross a strong hurdle of 312 zones and falling down from last six sessions making lower highs with built up of short position. It has given a lowest closing since 3rd June, 2015 and also closed below immediate support of 298 levels. We are expecting this weakness to continue for next coming sessions. One can sell the stock with the stop loss of Rs 312 for the downside target of Rs 291 levels.


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

Chandan Taparia is a technical analyst with Anand Rathi Retail Research