Here are a few trading ideas from Chandan Taparia of Anand Rathi for trade today:
ABB: BUY
Target: Rs 1312
Stop Loss: Rs 1232
The stock is moving after taking support at its 50 day exponential moving average and has been making higher top – higher bottom formation from last four sessions. It snapped the losses made in the previous week and gave the highest daily close of last six trading sessions. One can buy the stock with the stop loss of Rs 1232 for the upside target of Rs 1312 levels.
ASHOK LEYLAND: BUY
Target: Rs 108.50
Stop Loss: Rs 101
The stock is moving after taking multiple supports around its Rs 100 zones at its 50 DMA on daily and weekly chart. The overall trend of the stock is intact to positive and has been respecting to its 35 weekly moving average on closing basis from last two years. Thus a positive move towards Rs 108.50 and higher levels cannot be ruled out. One can buy the stock with the stop loss of Rs 101 for the upside target of Rs 108.50 levels.
INFOSYS: BUY
Target: Rs 1250
Stop Loss: Rs 1176
The stock gave a breakout after holding onto the support around Rs 1170 levels and has been continuously trading in an uptrend. It took support around its Rs 1170 levels after a decline witnessed in previous two weeks from Rs 1268 to Rs 1170 levels. It started to move with built up of long position and reclaimed its 1200 zones. Thus recommending to buy the stock with the stop loss of Rs 1176 for the upside target of Rs 1250 levels.
CEAT: SELL
Target: Rs 999
Stop Loss: 1061
The stock has been witnessing selling pressure from last four weeks and making lower top – lower bottom formation. It broke its support of Rs 1040 levels and gave the lowest daily close of last forty three trading sessions. It witnessed short built in previous session with an open interest addition of around 17%. We have fundamentally contrary view on the stock but suggesting a trade for immediate profit booking decline towards Rs 999 levels. Thus we are recommending selling the stock on bounce back move with the strict stop loss of Rs 1061 for the downside target of Rs 999 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
