Top trading calls by Anand Rathi: Buy Balkrishna Ind, Praj Ind and Ceat

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

NIFTY: BUY 

TARGET: 10,930 

STOP LOSS: 10830

Nifty has been forming higher tops and higher bottoms on the hourly charts and it has retraced 50 per cent of the recent eight-day fall. The index is expected to retrace 61.8 per cent of the entire fall; hence, the short-term target stands at 10,930, whereas the stop loss is pegged at 10,830.

BALKRISHNA INDUSTRIES:  BUY 

TARGET: Rs 905 

STOP LOSS: Rs 845

The stock has provided a breakout from the symmetrical triangular pattern on the daily as well as hourly charts. The daily as well as hourly momentum indicator is also well in buy mode; hence, we recommend buying it for the target of Rs 905 with a stop loss of Rs 845.

PRAJ INDUSTRIES: BUY 

TARGET: Rs 162 

STOP LOSS: Rs 140

The stock has been forming higher tops and bottoms on the daily charts with a clear buy crossover in its momentum indicator with a positive divergence; hence, we recommend buying it for the target of Rs 162 with a stop loss of Rs 140.

CEAT: BUY 

TARGET: Rs 1,125 

STOP LOSS: Rs 1,052

The stock seems to have completed a 5-wave declining structure on the daily as well as weekly charts. The momentum indicator moving average convergence divergence (MACD) is also well in the buy mode. Hence, a retracement of the entire fall is expected which comes at Rs 1,125. The reversal on the lower side is pegged at Rs 1,052.

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