Top trading ideas by Ajit Mishra: Buy Asian Paints, IDFC First Bank

The overall chart pattern of Asian Paints indicates that the prevailing momentum is likely to continue

Buy Asian Paints Limited

Last Close: Rs 2,914.40

Initiation range: Rs 2,900-2,910

Target: Rs 3,020

Stop loss: Rs 2,840

Rationale: Asian Paints has witnessed a fresh breakout from the pennant pattern (indicates a pause after a sharp surge) and made a new record high as well. The overall chart pattern indicates that the prevailing momentum is likely to continue. Traders shouldn’t miss the opportunity and create fresh longs in the mentioned zone.

Buy Dr. Reddy's Laboratories Limited

Last Close: Rs 5,311.20

Initiation range: Rs 5,300-5,310

Target: Rs 5,490

Stop loss: Rs 5,185

Rationale: Most pharma stocks are consolidating in a range after the phenomenal move and Dr. Reddy's is also trading in tandem with the others. It slipped marginally after testing the previous swing high around the 5,400 zone and is currently hovering in a narrow band. Indications are in the favor of gradual recovery from hereon. We, thus, advise creating longs in the given range.

Buy IDFC First Bank Limited

Last Close: Rs 58.95

Initiation range: Rs 58-59

Target: Rs 65

Stop loss: Rs 55.50

Rationale: We are seeing noticeable traction in the banking stocks and expect this trend to continue. Among the banking names, IDFC First Bank has witnessed a breakout from a congestion zone of late with a noticeable rise in volumes. All indications pointing towards a steady up move in near future.

Disclaimer: Ajit Mishra is VP - Research at Religare Broking.

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