Trading ideas from Anand Rathi; buy Havells India, Igarashi Motors, Ajanta Pharma

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

HAVELLS INDIA: BUY

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STOP LOSS: Rs 325
TARGET: Rs 345

The stock crossed its falling supply trend line and is set to start fresh rally after a minor profit taking witnessed in previous week. Earlier it witnessed a strong rally from Rs 267 to Rs 354 levels and after it witnessed profit taking towards Rs 327 levels. Now it has taken support around its 13 DMA and set to start fresh rally. So we are recommending to buy the stock on decline with stop loss of Rs 325 for the upside immediate target of Rs 345 levels.
 
IGARASHI MOTORS: BUY
STOP LOSS: Rs 625
TARGET: Rs 664

The stock gave a price volume breakout after the consolidation of 18 trading sessions. It gave a classical example of resistance becoming support. Earlier it was finding hurdle at Rs 622 levels and now the same is acting as support. The support base is shifting to higher levels as earlier it took support around Rs 595-Rs 600 zones now the same support has shifted to Rs 622-Rs 625 zones. It is holding above its 200 DMA and witnessed a positive price action. So we are recommending to buy the stock on decline with stop loss of Rs 625 for the upside immediate target of Rs 664 levels.

AJANTA PHARMA: BUY
STOP LOSS: Rs 1,467
TARGET: Rs 1,556

The stock has taken support and is moving after the profit taking of last four sessions. Overall it has been trading upside and making higher top – higher bottom formation from last sixteen weeks. It witnessed built up of long position with an open interest addition of around 3.50% in the previous session thus indicating fresh longs entering the counter. So we are recommending to buy the stock on decline with stop loss of Rs 1,467 for the upside immediate target of Rs 1,556 levels.

UNION BANK OF INDIA: SELL
STOP LOSS: Rs 122
TARGET: Rs 115

The stock has been making lower top – lower bottom from last nine trading sessions and has broken its support of Rs 117 zones and formed a negative price pattern. It witnessed built up of short position with an open interest addition of around 16% in May series. Overall the trend is negative and has been witnessing selling pressure at every resistance levels. Thus we are recommending selling the stock with the stop loss of Rs 122 for the downside target of Rs 115 levels.

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

Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi