Three trading ideas by Ajit Mishra: Buy Adani Ports, Federal Bank; sell DRL

Adani Ports and Special Economic Zone Limited

Recommendation: Buy

Last Close: Rs 792.25

Initiation range: Rs 770-780

Target: Rs 840

Stop loss: Rs 754

Adani Ports has witnessed a marginal dip after the recent surge and reached closer to the neckline (breakout) area of the previous consolidation range, offering a buying opportunity to those who missed the chance earlier. It may see some consolidation around the current levels before resuming the trend. We thus advise accumulating in the mentioned zone.

The Federal Bank Limited

Recommendation: Buy

Last Close: Rs 92.85

Initiation range: Rs 90-92

Target: Rs 102

Stop loss: Rs 87

We’re seeing noticeable traction in the banking pack and Federal Bank has recently witnessed a breakout from a consolidation range. The chart pattern indicates a gradual up move from hereon. Traders shouldn’t miss this opportunity and utilise any dip to accumulate in the given range.

Dr. Reddy's Laboratories Limited

Recommendation: Sell October Futures

Last Close: Rs 4,802

Initiation range: Rs 4,830-4,850

Target: Rs 4,600

Stop loss: Rs 5,000

Most of the pharma stocks are trading under pressure and Dr Reddy is also trading in tandem with others. It has made multiple attempts to surpass the resistance zone around 5,000 levels but in vain and formed a fresh shorting pivot now. We recommend using any bounce to go short in the mentioned zone.

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Discalimer: Ajit Mishra is VP - Research at Religare Broking.

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