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Here are a few trading strategies by Chandan Taparia of Anand Rathi for trade today:
BUY MOTHERSON SUMI: The stock has been making higher highs – higher lows from last six trading sessions and is now at its eleven months high levels. It gave the highest daily close since 21st August 2015 and according to the price placement of the stock it is well placed to head towards Rs 332 and higher levels. It has been making higher top higher bottom formation from last five months. So, one can buy the stock with the stop loss of Rs 310 for the upside immediate target of Rs 332 levels.
BUY CITY UNION BANK: The stock has given a fresh consolidation breakout by crossing its previous hurdle of Rs126 mark and trading at uncharted life time high territory. It has been moving upwards from last three weeks and making higher top – higher bottom formation on weekly chart. It gave the lifetime highest daily close and showing the potential to head towards Rs 131.50 and higher levels. One can buy the stock with the stop loss of Rs 121 for the upside immediate target of Rs131.50 levels.
BUY HCL TECHNOLOGIES: The stock managed surpass its resistance of Rs 750 zones after the struggle of last two weeks. The positive price action was led by short covering and now fresh built up of long position may drive its bounce back move for next coming sessions. It has formed a bullish price structure and is giving an early sign of bottoming out and has also given the highest daily close of last twenty two trading sessions. Thus recommending buying the stock with the stop loss of Rs 725 for the upside immediate target of Rs 775 levels.
SELL GAIL: The stock failed to surpass the multiple hurdles of Rs 400-402 levels in last 3-4 weeks and now turning lower with negative price structure below its support zones. It has added built up of short near the hurdle zones with liquidation of long position which also supports our negative view on the stock. So, one can sell the stock on bounce back move with the stop loss Rs 400 for the downside immediate target of Rs 375 levels.
Disclaimer: We are suggesting these stocks to our clients but not personal holdings
Chandan Taparia is Derivatives Analyst - Equity Research at Anand Rathi