Top stock calls by Anand Rathi: Buy HDFC, Indraprastha Gas; sell Divi's Lab

Nifty outlook and top trading ideas by Jay Anand Thakkar, CMT - Assistant Vice President - Equity Research, Anand Rathi Shares and Stock Brokers.

NIFTY: SELL 

TARGET: 11,225 

STOP LOSS: 11,400

Nifty has closed in the negative territory in the last trading session for the seventh consecutive day now. The daily momentum indicator MACD is in the sell mode on the daily as well as weekly charts. Hence, the probability of a further downtrend is high. The index has been forming lower tops and lower bottoms and till that continues, the overall trend will remain negative. The short term support is pegged at 11,225, whereas resistance is pegged at 11,400; hence, we recommend selling.

DIVI'S LAB: SELL 

TARGET: Rs 1,526 

STOP LOSS: Rs 1,683

The stock has provided a breakdown from the ending diagonal pattern with a sell crossover in its daily momentum indicator MACD on the daily as well as weekly charts. The short term target is seen at Rs 1,526, whereas the resistance is pegged at Rs 1,683.

HDFC: BUY 

TARGET: Rs 1,832 

STOP LOSS: Rs 1,959

The stock has provided a breakout from the bearish head and shoulders pattern which is a bearish reversal pattern. It has provided a sell crossover on its daily MACD; hence, we recommend selling for the target of Rs 1,832 with a stop loss of Rs 1,959.

INDRAPRASTHA GAS: BUY 

TARGET: Rs 335 

STOP LOSS: Rs 310

The stock continues to form higher tops and higher bottoms on the daily charts; however the daily MACD is still in sell mode. The stock has provided a breakout from the sideways range; hence, it is a trend continuation breakout.

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