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Top stock picks by Jay Anand Thakkar of Anand Rathi: Buy Dabur, TCS

The Nifty has broken down from the symmetrical triangular pattern, which is a bearish reversal pattern

Jay Anand Thakkar  |  Mumbai 

Trading Strategy

NIFTY: SELL | TGT: 11,850 | SL: 12,150

Nifty closed deep in the negative territory on Monday with a clear sell crossover in its momentum indicator MACD. The index has broken down from the symmetrical triangular pattern, which is a bearish reversal pattern. The next support is at 11,850, hence that is the target whereas the resistance on the upside is at 12,150, hence, that is the stop loss.

DLF: SELL | TGT: Rs 203 | SL: Rs 230.10

The stock has broken down from the expanding triangular pattern, which is a bearish reversal pattern. The daily as well as weekly momentum indicator MACD is well in the sell mode. The stock has completed a five wave rising structure and a retracement of the same seems to have started. The minimum target on the lower side is Rs 203 whereas the resistance is at Rs 230.10.

DABUR: BUY | TGT: Rs 421 | SL: Rs 460

The stock has provided a breakdown from the symmetrical triangular pattern, which is a bearish reversal pattern. The daily as well as weekly momentum indicator MACD has provided a sell crossover with a clear negative divergence. The momentum has also gone below the zero reference line which is quite a negative sign going forward. The minimum retracement target is Rs 421; one can sell with a stop loss of Rs 460.

TCS: BUY | TGT: Rs 2,300 | SL: Rs 2,150

The stock has provided a breakout from the falling channel with a clear buy crossover in its daily as well as weekly momentum indicators. The stock seems to have started the wave III of wave 5 up, and hence, the probability of an upside is quite high.


Disclaimer: Author may or may not have positions in the above mentioned stocks

First Published: Tue, January 07 2020. 07:13 IST
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