Buy GAIL with a target of Rs 397, stop loss of Rs 375: Anand Rathi Research

Nifty outlook and top trading ideas by Jay Anand Thakkar, CMT -Assistant Vice President - Equity Research, Anand Rathi Research:

NIFTY: BUY 

Target: 11,420 

Stop Loss: 11,085

Nifty closed in the negative territory in the last trading session in the last trading session and it has broken the previous swing low of 11,250 levels which is a negative reversal. The Index has started to form lower tops and lower bottoms and so now till the previous swing high is not taken off then trend remains down. The resistance on the upside is pegged at 11,525 levels whereas the support is pegged at 11,085 levels.

DEEPAK NITRATE - BUY 

Target - Rs 329 

Stop Loss - Rs 276

The stock has started to form higher tops and higher bottom with a reversal in its momentum indicator MACD. The Stock seems to have started wave III of wave 5 up.

TECH MAHINDRA - BUY 

Target - Rs 794 

Stop Loss - Rs 755

The stock has been rising in an upward sloping parallel channel with an increase in volumes and buy crossover in its momentum indicator MACD. The wave III of wave 5 up seems to have started.

GAIL - BUY 

Target - Rs 397 

Stop Loss - Rs 375

The stock has provided a breakout from the inverse head and shoulders pattern with a buy crossover in its momentum indicator MACD on the daily chart which is a positive sign in the short term.

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.