Stock picks from Chandan Taparia: Buy Voltas, Tech Mahindra

Here are a few trading ideas from Chandan Taparia of Anand Rathi for Tuesday’s session:
 
BUY VOLTAS: The stock has been sustaining above its 200 DMA & 50 DMA and holding the support even after profit taking seen in the broader market. It has taken support at the rising support trend and if follow up buying continues in the stock a fresh rally cannot be ruled out. Thus recommending to buy the stock with the stop loss Rs 330 for the upside target of Rs 350.
 
BUY TECH MAHINDRA: The stock has taken support at its 50 DMA and has formed a positive price structure post the profit booking decline witnessed in previous two trading sessions. It has holding onto the support around its 50 weekly moving average from last seven weeks. It witnessed a strong rally in previous session and is showing strength to head towards 486 and higher levels. Thus one can buy the stock with the stop loss of Rs 456 for the upside immediate target of Rs 486.

 

BUY DEWAN HOUSING FINANCE CORPORATION: The stock is making higher top –higher bottom formation from last two weeks and gave the highest daily close last twenty trading sessions. The up move in the stock was led by short covering activities and now fresh built up of long position in previous session with open interest addition of around 4% may continue the positive price action towards 261 and higher levels. Thus recommending to buy the stock with the stop loss Rs 246 for the upside target of Rs 261.
 
SELL APOLLO HOSPITAL: The stock is making lower highs – lower lows and has failed to continue its bounce back move after the recovery of last seven trading sessions. It has tendency of witnessing selling pressure after every meaningful bounce back move so bears may get the grip to drag it on lower levels. it is witnessing built up of short position with open interest addition of around 7% in last three trading sessions. Thus, recommending selling the stock with the stop loss of Rs 1,236 for the downside immediate target of Rs 1,164.

 
Disclaimer: We are suggesting these stocks to our clients but not personal holdings.
 
Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi