 "Buy M&M Financial, Voltas, Reliance Industries: Anand Rathi")
Here are a few trading strategies by Chandan Taparia of Anand Rathi for trade today:
BUY M&M FINANCIAL: The stock has taken support around Rs 320-322 zones and is moving upwards from last three trading sessions. It is holding above its 50 DMA and is showing the potential to surpass its immediate hurdle of Rs 345 levels and head towards Rs 360 levels. Strong buying is seen in other financial sector stocks and expecting this stock to move in the same lines. So, one can buy the stock with the stop loss of Rs 322 for the upside immediate target of Rs 345 levels.
BUY VOLTAS: The stock has been holding onto the gains above its support trend line and has formed a narrow range price pattern on daily chart. It has been consolidating from last four trading sessions above its moving averages. The support base has shifted higher as earlier the support was at around Rs 315 then the same shifted to Rs 335 zones and now the support is at Rs 339-340 zones. So, one can buy the stock with the stop loss of Rs 339 for the upside immediate target of Rs 360 levels.
BUY RELIANCE INDUSTRIES: The stock has formed a positive price structure and witnessed built up of long position with open interest addition of 12% in last couple of trading sessions. It snapped the losses made at the start of the series and surpassed the immediate falling trend of last six trading sessions. Thus one can buy the stock with the stop loss Rs 994 for the upside target of Rs 1060 levels.
SELL BHARTI INFRATEL: the stock has been making lower top lower bottom formation from last seven trading sessions and continuously witnessing selling pressure even after positive price action being seen in the broader market. Recently it failed to hold above the multiple hurdle of Rs 410 levels and now it broke its support of Rs 385 levels. It witnessed huge built up of short position with open interest addition of around 13% in previous session. So, one can sell the stock on bounce back move with the stop loss Rs 395 for the downside immediate target of Rs 370 levels.
BUY M&M FINANCIAL: The stock has taken support around Rs 320-322 zones and is moving upwards from last three trading sessions. It is holding above its 50 DMA and is showing the potential to surpass its immediate hurdle of Rs 345 levels and head towards Rs 360 levels. Strong buying is seen in other financial sector stocks and expecting this stock to move in the same lines. So, one can buy the stock with the stop loss of Rs 322 for the upside immediate target of Rs 345 levels.
BUY VOLTAS: The stock has been holding onto the gains above its support trend line and has formed a narrow range price pattern on daily chart. It has been consolidating from last four trading sessions above its moving averages. The support base has shifted higher as earlier the support was at around Rs 315 then the same shifted to Rs 335 zones and now the support is at Rs 339-340 zones. So, one can buy the stock with the stop loss of Rs 339 for the upside immediate target of Rs 360 levels.
BUY RELIANCE INDUSTRIES: The stock has formed a positive price structure and witnessed built up of long position with open interest addition of 12% in last couple of trading sessions. It snapped the losses made at the start of the series and surpassed the immediate falling trend of last six trading sessions. Thus one can buy the stock with the stop loss Rs 994 for the upside target of Rs 1060 levels.
SELL BHARTI INFRATEL: the stock has been making lower top lower bottom formation from last seven trading sessions and continuously witnessing selling pressure even after positive price action being seen in the broader market. Recently it failed to hold above the multiple hurdle of Rs 410 levels and now it broke its support of Rs 385 levels. It witnessed huge built up of short position with open interest addition of around 13% in previous session. So, one can sell the stock on bounce back move with the stop loss Rs 395 for the downside immediate target of Rs 370 levels.
Disclaimer: We are suggesting these stocks to our clients but not personal holdings
Chandan Taparia is Derivatives Analyst - Equity Research at Anand Rathi