Stock tips from Anand Rathi: Buy Crompton Greaves, DHFL; Sell Hindalco

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

TATA ELXSI: BUY

The stock has been consolidating in a range from last 13 weeks and has managed to hold the support base above Rs 1,700-1,730 zones. It has given a price volume breakout above Rs 1,800 zones by forming a small triangle on daily chart. It has managed to close above 50 DMA and also set to surpass its falling supply trend line. Thus we are recommending buying the stock with stop loss of Rs 1,785 for the upside target of Rs 1,890 levels.

DHFL: BUY

The stock has taken multiple support and has been making higher lows from last four trading sessions and crossed the hurdle of Rs 220 zones. It is set to start an up move after the sideways move of last twelve trading sessions. Earlier it corrected from 242 to 205 zones and now moving upwards after an accumulation so looks strong even in terms of risk reward ratio. Thus recommending the traders to buy the stock with the stop loss Rs 210 for the upside immediate target of Rs 228 levels.

CROMPTON GREAVES: BUY

The stock has seen a V shape recovery from Rs 164 to Rs 190 levels in last three weeks and given an early sign of major breakout on weekly chart. It has been making higher top – higher bottom formation on daily charts from last couple of days with rising volume activities. It registered highest daily close of last three series and holding above its volume weight age average of Rs 176 levels. Traders can buy the stock with the stop loss Rs 180 for the upside immediate target of Rs 196 levels.

HINDALCO: SELL

The major trend of the stock is intact to weak as it has been falling down from last six weeks. It witnesses sustain selling pressure at every small bounce back and has set perfect example of support becoming resistance. It has seen fresh call writing at Rs 80 strikes which will continue to push the stock to lower levels. One can sell the stock on bounce back move with stop loss of Rs 78.50 for the downside target of Rs 71 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