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Here are a few trading strategies by Chandan Taparia of Anand Rathi for trade today:
BUY DHFL: The stock gave a strong price volume breakout on daily and weekly chart. It surpassed the hurdle of Rs 225-228 levels and gave the highest daily close since 1st January 2016. It has been continuously making higher highs - higher lows from last six weeks and holding above its 35, 50 and 200 DMA. It moved above its falling trend line and now it is well placed to head towards Rs 241 and higher levels. Thus one can buy the stock with the stop loss of Rs 223 for the upside target of Rs 241 levels.
BUY POWER GRID: The stock has been holding the support base and hovering near its lifetime high levels. It has been making higher top – higher bottom formation from last five months with support base shifting higher. Earlier the resistance was around Rs 170 zones and now same has become the support levels. One can buy the stock with the stop loss of Rs 170 for the upside immediate target of Rs 182 levels.
BUY UNION BANK: The stock took support and surpassed the immediate falling trend line. It snapped the losses made at the start of the series. It surpassed the hurdle of Rs 132.50 levels with built up of long position as open interest added by around 6% in the previous session. Thus recommending buying the stock with the stop loss of Rs 127.50 for the upside target of Rs 135 levels.
SELL COAL INDIA: The stock broke its support of Rs 326 levels and has been making lower top – lower bottom price formation from last 10 trading sessions. It has formed a negative price structure and witnessing built up of shorts from last couple of trading sessions with an open interest addition of around 8%. So, one can sell the stock with the stop loss Rs 337 for the downside immediate target of Rs 317.50 levels.
Disclaimer: We are suggesting these stocks to our clients but not personal holdings
Chandan Taparia is Derivatives Analyst - Equity Research at Anand Rathi
