Trading strategies from Chandan Taparia of Anand Rathi

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

HINDALCO: BUY

TARGET: Rs 77.50

STOP LOSS: Rs 70

The stock crossed and closed above the falling trend line hurdle of Rs 72 zones after the struggle of last 6 weeks and edged higher after taking support at 50 DMA. It has made a Head & Shoulder price pattern on daily chart and also closed above 50 DMA with breakaway gap which has a bullish implication. It looks strong as per its recent price placement and has potential to head towards Rs 77.50 and Rs 80 levels. Thus recommending buying the stock with the stop loss of Rs 70 for the upside target of Rs 77.50 levels.

PIDILITE: BUY

TARGET: Rs 615

STOP LOSS: RS 579

The stock is moving after the fall witnessed in previous week from Rs 648 to Rs 580 levels and managed to hold above its 50 DMA. It is continuously respecting to its 50 weekly moving average from September, 2013 and according to its behavior it may see and up move towards Rs 615 and higher levels. The long term trend of the stock is intact to positive even after the volatile swings seen in the market indicating strength in the counter. Thus recommending buying the stock with the stop loss of Rs 579 for the upside target of Rs 615 levels.

 

BIOCON: BUY

TARGET: Rs 494

STOP LOSS: Rs 464

The stock has formed an attractive price pattern and surpassed its falling supple trend line. It crossed and closed above the hurdle of Rs 478-480 zones after the consolidation of last twenty one trading sessions. Recently it turned from the lower levels and now looks attractive in terms of risk reward ratio. So one can buy the stock to get the opportunity of attractive risk reward ratio with the stop loss of Rs 464 for the target of Rs 494 levels.

 

TITAN: SELL

TARGET: Rs 324

STOP LOSS: Rs 344

The stock failed to recover with recovery in the broader market and ended the session in the negative territory thus indicating weakness at current levels. It failed to cross the hurdle of Rs 340 zones and witnessed built up of short position. It has a tendency of witnessing selling pressure at every bounce back move from last four series. One can sell the stock on bounce back with stop loss of Rs 344 for the downside target of Rs 324 levels.

 

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

Chandan Taparia is a technical analyst with Anand Rathi