Trading ideas from Anand Rathi: Buy NTPC, sell Wipro

Here are a few trading ideas from Chandan Taparia of Anand Rathi for Monday’s session:

 

BUY NTPC: The stock registered 52 weeks high of 178.25 levels and has been making higher top – higher bottom formation on weekly chart. The support base is also shifting higher as earlier the support was around 160 then the same shifted to 170 zones. It surpassed the crucial hurdle of 170 zones which was acting as a resistance from last four years indicating a fresh rally towards 182 and higher levels. So, one can buy the stock with the stop loss of Rs 171.50 levels for the upside target of Rs 182 levels.

 

BUY MOTHERSON SUMI: The stock surpassed the falling trend line and crossed and closed above its hurdle of 342 zones. It gave the highest daily close of last five months and is well placed to head towards 355 and higher levels. It inched higher from its recent consolidation phase of last three weeks. So, one can buy the stock with the stop loss of Rs 333 levels for the upside target of Rs 355 levels.

 

BUY PETRONET LNG: The stock is hovering near its lifetime high levels and moved higher from its falling supply trend line. It witnessed huge built up of long position with open interest addition of around 15% in previous session. It gave the third highest daily close and is well placed to head towards 406 and higher levels. Thus, recommending buying the stock with the stop loss of Rs 383 levels for the upside immediate target of Rs 406 levels.

 

SELL WIPRO: The stock broke the support of 470 zones and is finding sustained selling from last three weeks. It broke its rising support trend and a follow up selling below 470 may drag it towards 450 levels. It has been moving sideways to negative even after the buying interest in broader market which indicates its shorts term weakness as per price behavior. One can sell the stock below 428 with the stop loss of Rs 480 for the downside target of Rs 450 levels.

 

Disclaimer: We are suggesting these stocks to our clients but not personal holdings.

 

Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi