Sell JSPL, Ambuja Cements: Anand Rathi

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

TCS: BUY

Stop Loss: Rs 2,285

Target: Rs 2,430

It is turning from extremely oversold price territory and is giving early sign of short term bounce back move after the weakness of last 10 weeks. It managed to hold immediate support of 2315 zones and the same support worked well in the month of July 2014. We are here going for a bottom fishing approach so suggesting to buy with strict stop loss of 2285 levels for a bounce back target of 2430 levels.

JSPL: SELL

Stop Loss: Rs 89.50

Target: Rs 82

It witnessed a recovery from 56 to 96 zones in previous two series but failed to cross the hurdle of 96-97 zones. It has been forming lower highs – lower lows from last two trading sessions. The overall structure of the stock is negative and it witnesses selling at every bounce. Thus, recommending selling the stock with the stop loss of 89.50 for the downside target of 82 levels.

AMBUJA CEMENTS: SELL

Stop Loss: Rs 197

Target: Rs 185

The stock broke its multiple support base of 190 zones and registered yearly low around 188 levels. It has been continuously trading in weakness and forming lower top – lower bottom formation. It has witnessed huge built up of short position in this entire series with an open interest addition of around 30%. We are expecting this weak structure to continue for next coming sessions so suggesting selling with stop loss of 197 for the downside target of 185 levels.  

Disclaimer: We are suggesting all these stocks to our clients but no personal holdings.

Chandan Taparia is a technical analyst with Anand Rathi Retail Research