Buy TCS, IOC and sell BHEL, says Chandan Taparia of Anand Rathi

Here are a few trading ideas from Chandan Taparia of Anand Rathi for Tuesday's session:

BUY TCS

The stock is making higher highs – higher lows from last five trading sessions and moved above its 50-DMA. It surpassed its 200-DMA and has taken support at its monthly support trend line. It looks attractive in terms of risk reward ratio and is showing the potential to head towards Rs 2346 and higher levels. One can buy the stock to grab the opportunity of attractive risk reward ratio with the stoploss of Rs 2208 for the upside immediate target of Rs 2346 levels.

BUY IOC

The stock is consolidating from last six weeks and is holding the gains. It moved above its 50-DMA and gave the highest daily close of last six trading sessions with rise in trading volumes. It has been holding onto the support levels near its lifetime high territory even after profit taking seen in the broader market indicating strength in the counter. Thus, one can buy the stock with the stoploss of Rs 293 for the upside immediate target of Rs 312.50.

BUY GODREJ INDUSTRIES

The stock is making higher top –higher bottom formation from last two weeks and is witnessing buying interest at minor declines. The longs are intact in the counter with fresh built-up  of long position of around 3.5% in previous trading session. Thus, one can buy the stock with the stoploss of Rs 400 for the upside immediate target of Rs 427.

SELL BHEL

The stock witnessed selling and broke its support of Rs 123. It has seen built-up of short position with open interest addition of around 7% in previous two sessions, thus, supporting our negative view in the counter. It has been making lower highs – lower lows from last six trading sessions.  So, one can sell the stock with the stoploss Rs 127.50 for the downside immediate target of Rs 120.

Disclaimer: We are suggesting these stocks to our clients but not personal holdings.

Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi