Trading ideas by Ventura Securities: Buy Tata Power, Larsen & Toubro

Tata Power's stock has the strength to achieve a target of 140-160 in the coming days

BUY TATA POWER

CMP: Rs 110

TARGET: Rs 140-160

BUY AREA: (Rs 105-102)- Rs 100-( Rs 98-96)

STOP LOSS: Rs 88

Rationale: A double-bottom formation at the 52 area in September-October 2020 pushed Tata Power steadily to 115 in March 2021. Valid corrective profit-booking followed and the stock made a low of 90 in April 2021. It continued its uptrend and recently, on May 10, 2021, the stock gave a breakout to form a downward sloping trend line and gave a higher weekly close at 110, supported by volumes. The KST, Demand Index and Vortex Indicator suggest the possibility of a strong up move. The stock is trading above all averages and the 200 DMA shows a rising trend.

The stock has the strength to achieve a target of 140-160 in the coming days. If it corrects it could be added at (105-102)-100-(98-96) levels. A stop loss of 88 should be observed in the trade. CLICK HERE FOR THE CHART

BUY LARSEN & TOUBRO

CMP: Rs 1,397

TARGET: Rs 1,550- Rs 1,750

BUY AREA: (Rs 1,377-1,363)- Rs 1,352-(Rs 1,338-1,305)

STOP LOSS: 1,290

Rationale: Larsen & Toubro started its up move in September 2020 from 842, followed by a steady rise until the stock made a high of 1,593 in February 2021. A valid corrective profit-booking ensued and the stock made a low of 1,306 in April 2021. Recently, on May 10, the stock gave a breakout to form a downward sloping trend line and gave a higher weekly close, supported by volumes. The KST, Demand Index and Vortex Indicator suggest a possibility of a strong up move. It is trading above all averages and the 200 DMA shows a rising trend.

The stock has the strength to achieve a target of 1,550-1,750 in the coming days. If it corrects, it could be added at (1,377-1,363)-1,352-(1,338-1,305) levels. A stop loss of 1,290 should be observed in the trade. CLICK HERE FOR THE CHART

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Disclaimer: Bharat Gala is President - Technical Research at Ventura Securities.

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