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Here are a few trading ideas from Chandan Taparia of Anand Rathi:
HDFC: BUY
STOP LOSS: Rs 1,085
TARGET: Rs 1,155
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The stock is rising from last four sessions and holding the gains even after selling pressure seen in the broader market. It has formed a strong support base near Rs 1,050-Rs 1,100 zones after a decline from Rs 1,400 to Rs 1,000 levels and crossed and closed above its 50 day exponential moving average. Now it is well placed to start next rally towards Rs 1,155 and higher levels. So, one can buy the stock with the stop loss of Rs 1,085 for the upside target of Rs 1,155 levels.
HINDUSTAN UNILEVER: BUY
STOP LOSS: Rs 819
TARGET: Rs 870
The stock has taken multiple supports around 845 zones and respecting the same from last seven weeks. Thus expecting the same support to provide bounce in the counter and head towards Rs 870 and higher levels. So, one can buy the stock with the stop loss of Rs 819 for the upside target of Rs 870 levels.
UNION BANK OF INDIA: SELL
STOP LOSS: Rs 124.75
TARGET: Rs 114.25
The stock has been making lower top – lower bottom from last eight trading sessions and has broken its support of Rs 120 zones and formed a negative price pattern. It witnessed built up of short position with an open interest addition of around 11% in last two sessions of the 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 124.75 for the downside target of Rs 114.25 levels.
AMBUJA CEMENTS: SELL
STOP LOSS: Rs 225
TARGET: Rs 210
The stock has been making lower top - lower bottom formation from last five weeks and gave lowest daily close of last twenty eight trading sessions. It has witnessed built up of short position and has added open interest by around 20% in the first three sessions of the series. Now if it continue to remain below Rs 221 levels then selling pressure may drag the stock towards Rs 210 and lower levels. Thus, one can sell the stock on a small bounce back move with the stop loss of Rs 225 for the downside target of Rs 210 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
