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Here are a few trading ideas from Chandan Taparia of Anand Rathi for trade today:
BUY DABUR: The stock held onto the support at its 50 DMA even after huge profit taking seen in the broader market. It has been making higher top – higher bottom formation from last two weeks. It surpassed the hurdle of Rs 295 levels and according to current price placement of the stock if follow up buying continues then a possibility of an up move towards Rs 302 and higher levels may be seen. Thus one can buy the stock with the stop loss of Rs 282 levels for the upside target of Rs 302 levels.
BUY TORRENT POWER: The stock crossed and closed above its 50 daily moving average and surpassed the hurdle of Rs 178 levels. It has formed double bottom on daily chart which has bullish implication. It also closed above its immediate falling trend line which supports our positive view in the stock. So, one can buy the stock with the stop loss of Rs 172 for the upside immediate target of Rs 184 levels.
SELL CIPLA: The stock is making lower highs from last four trading sessions and witnessing built up of short position with open interest addition of around 8%. It has formed a negative price structure as it drifted below its support of Rs 570 levels and gave the lowest daily close of last forty three trading sessions. One can sell the stock with the stop loss of Rs 580 for the downside immediate target of Rs 545 levels.
SELL BANK OF INDIA: The stock broke the support of Rs 112 levels as failed to surpass its Rs 115 levels. It has added fresh short position with open interest addition of around 15% in previous session which may support our negative view in the counter. One can sell the stock on a small bounce back move with strict stop loss of Rs 113 for the downside target of Rs 105.50 levels.
Disclaimer: We are suggesting these stocks to our clients but not personal holdings.
Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi
