Stock tips from Anand Rathi; buy Apollo Hospitals, SKS Microfinance

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

GATEWAY DISTRIPARKS: BUY
STOP LOSS: Rs 286
TARGET: Rs 312

 
The stock has given a positive price breakout in the beginning of week and now follow up momentum indicates strength in the counter. It has respected to its 50 DMA and given a consolidation breakout above Rs 285 zones after the accumulation of last 10 weeks. It looks strong to head towards Rs 312 and higher levels. So we are suggesting to buy with stop loss of Rs 286 for the upside target of Rs 312 levels.
 

APOLLO HOSPITALS ENTERPRISE: BUY
STOP LOSS: Rs 1,340
TARGET: Rs 1,425

It has taken support near to the lower band of the trading range and crossed above immediate hurdle of Rs 1,382 zones. It has surpassed an immediate supply trend line and managed to reclaim its 50 DMA after the consolidation of last eighteen trading sessions. It’s a defensive stock and looks attractive in terms of risk – reward ratio. One can buy with stop loss of Rs 1,340 for the upside target of Rs 1,425 levels.

SKS MICROFINANCE: BUY
STOP LOSS: Rs 564
TARGET: Rs 603

The stock has given a strong price action on daily and weekly price parameter. It has surpassed previous hurdle of Rs 578 with rising trading volumes and open interest activities. It has seen open interest addition of more than 12% in last couple of sessions which indicates that participants are expecting this momentum to continue for higher levels. One can buy the stock with stop loss of Rs 564 for the upside target of Rs 603 levels.

AMBUJA CEMENTS: SELL
STOP LOSS: Rs 237
TARGET: Rs 220

The stock has failed to cross its crucial hurdle of Rs 238 zones and has been consolidating in a range with fresh built up of short position. It has seen a strong move in the last series from Rs 186 to Rs 236 levels but now momentum seems to be taking a pause and if it fails to hold the support zones then profit booking decline may be seen towards Rs 222 then Rs 215 levels. One can sell the stock with stop loss of Rs 237 for the downside target of Rs 220 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