Chart Check: Tata Motors, Power Grid, GAIL, Tata Power

Image via Shutterstock

Image via Shutterstock


  Here are a few trading ideas from Chandan Taparia of Anand Rathi:

BUY TATA MOTORS: The stock even after a gap up opening witnessed strong buying interest at the opening level indicating strength in the counter. It took support at its 13 Exponential moving average and gave the highest weekly close of last 52 weeks. It has formed a positive price pattern and according to current price structure it is set to head towards Rs 475 and higher levels. Thus recommending buying the stock with the stop loss of Rs 448 for the upside target of Rs 475 levels.

BUY POWER GRID: The stock has given a price volume breakout and registered 52 weeks high levels while it is just 10 points away from its lifetime high levels. It has been making higher top – higher bottom formation on daily, weekly and monthly charts. It gave the highest daily and weekly close and now a continuation in the positive price action towards Rs 162 and new higher territory cannot be ruled out. One can buy the stock with the stop loss of Rs 150 for the upside target of Rs 162 levels.

BUY GAIL: The stock gave a breakout from the falling supply trend line and surpassed its immediate hurdle of Rs 385 zones. It has been witnessing short covering activities from last three trading sessions and also holding the support base from last four weeks. One can buy the stock with the stop loss of Rs 370 for the upside target of Rs 400 levels.

SELL TATA POWER: The stock failed to cross the multiple hurdles of Rs 77-Rs 77.50 zones and started to decline. It broke its support of Rs 74 levels and witnessed built up of short position with open interest addition of around 7% in previous session.  So, recommending selling the stock with the stop loss of Rs 78.25 for the downside target of Rs 70 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