Here are a few trading ideas from Chandan Taparia of Anand Rathi for trade today:
ASHOK LEYLAND : BUY
Target: Rs 112.50
Stop Loss: Rs 104.50
The stock seen a strong surge in the price after hitting a panic low near to 95 zones and surpassed immediate hurdle of 107 levels. It turned from major support and now has the potential to head towards its recent high of 113 and even higher levels. It has crossed its 50% retracement zones of the previous fall and now well places to start the fresh rally. One can buy the stock with the stop loss of 104.50 for the upside target of 112.50 levels.
TATASTEEL : BUY
Target: Rs 338
Stop Loss: Rs 318
The stock has managed to hold the support of 320 near to its 50 day moving average. It has tested high of 337 which is a multiple hurdle of the counter. It has surpassed a falling supply trend line and reason being fresh buying may trigger the stock for higher zones. One can bu=y the stock on decline with the stop loss of 318 for the immediate target of 338 levels.
Target: Rs 776
Stop Loss: Rs 728
The stock has managed to negate its weak structure of making lower top – lower bottom and crossed its hurdle of 755 zones. It is turning from oversold territory so may witness a bounce back move and looks attractive in terms of risk – reward ratio. One can buy the stock with stop loss of 728 for the upside target of 776 levels.
GAIL : SELL
Target: Rs 366
Stop Loss: Rs 390
The stock has failed to surpass its multiple hurdle of 390-394 zones and started to decline with fresh built up of short position. It has seen a decline in price with rising trading and open interest activities which also supports a negative sense for a profit booking decline. It has also formed multiple tops at supply zones which may attract a decline towards 365 and lower levels. One can sell the stock on a bounce back move with the stop loss of 390 for the downside target of 366 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