Top trading calls by Anand Rathi: Buy Torrent Power, Sell Hindalco

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

NIFTY: SELL 

TARGET: 10,550 

STOP LOSS: 10,760

Nifty closed almost in the negative territory in the last trading session. It has five waves declining structure on the hourly charts which is a negative sign in the short term, hence any bounce should be utilized as a selling opportunity in the short term. The minimum equality target in the short term comes to 10550 levels whereas the resistance is pegged around 200DMA i.e. 10760 levels.

TORRENT POWER: BUY 

TARGET: Rs 274 

STOP LOSS: Rs 252

The stock had formed a nice symmetrical triangular pattern on the daily charts which is quite positive for the bulls in the short term. Also, the stock has formed a bullish belt hold candlestick pattern on the daily chart which is also a positive sign in the short term. The momentum indicator has also provided a buy crossover, hence we recommend buying it for the target of 274 with a stop loss of 252.

HINDALCO: SELL 

TARGET: Rs 185 

STOP LOSS: Rs 221

The stock has broken the descending triangular pattern on the lower side with a clear sell crossover in it momentum indicator MACD. The triangle is formed in its wave B and wave C down seems to have started, hence the minimum equality target comes to 185.

RAYMOND: SELL 

TARGET: Rs 752 

STOP LOSS: Rs 843

The stock has confirmed the breakout on the lower side with a lower top and lower bottom formation on the daily charts. The momentum indicator MACD is well in the sell mode with negative divergence. On the weekly charts, the stock seems to have completed a five wave rising structure, hence a minimum of 38.2% retracement of the entire rise can’t be ruled out.

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