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Here are a few trading ideas from Chandan Taparia of Anand Rathi for trade today:
SUNDRAM FASTENERS: BUY
Target: Rs 200
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Stop Loss: Rs 187
The stock formed a “flag and pole pattern” on daily chart which has bullish implication. It gave a breakout from the consolidation phase of last 9 trading sessions and surpassed its hurdle of Rs 193 levels. It is trading above all its moving averages and now set for a fresh rally towards Rs 200 and higher levels. One can buy the stock with the stop loss of Rs 187 for the upside immediate target of Rs 200 levels.
ASHOK LEYLAND: BUY
Target: Rs 96.50
Stop Loss: Rs 89
The stock has taken support at its rising support trend line and is giving the signs of bottoming out at its 50 weekly moving average. It has also taken support at its 61.8% Fibonacci retracement levels of its recent fall. The medium term trend is intact to positive and also looks attractive in terms of risk reward ratio. Thus one can buy the stock with the stop loss of Rs 89 for the upside immediate target of Rs 96.50 levels.
APOLLO TYRES: BUY
Target: Rs 166
Stop Loss: Rs 154
The stock surpassed the hurdle of 159 levels and gave a consolidation breakout even after profit taking seen in the broader market. It has formed an attractive price structure and has turned from the lower levels. It gave the highest daily close of last 53 trading sessions. It witnessed huge built up of long position with an open interest addition of around 8% in the previous session. Thus one can buy the stock with the stop loss of Rs 154 for the upside immediate target of Rs 166 levels.
CENTURY TEXTILES: SELL
Target: Rs 645
Stop Loss: Rs 686
The stock has formed a multiple tops and broken the support of Rs 670-668 levels. It failed to sustain above Rs 700 zones and started to witness selling pressure. It has seen liquidation of long as well as short built up of short position which also supports our negative view on the stock. One can sell the stock with stop loss of Rs 686 levels for the downside target of Rs 645 levels.
Disclaimer: We are suggesting these stocks to our clients but no personal holdings
Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi
