Top trading ideas by Anand Rathi: Buy ACC, Sadbhav Engineering and M&M

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: 12,050 

STOP LOSS: 11,870

Nifty closed in the positive territory in last trading session and it has started to form higher tops and higher bottoms on the hourly charts. The hourly, daily and weekly momentum indicator MACD (moving average convergence divergence) is well into buy mode which is quite positive. The index has a minor hurdle at 11,934 which when taken off will take it to 12,050 levels. The support is pegged at 11,870 levels.

ACC: BUY 

TARGET: Rs 1,846 

STOP LOSS: Rs 1,686

The stock has provided a breakout from the multiple swing resistances with a clear buy crossover in its momentum indicator MACD on the daily, weekly and monthly charts. It seems to have started wave III on the upside and it is likely to inch towards Rs 1,846 levels.

SADBHAV ENGINEERING:  BUY 

TARGET: Rs 303 

STOP LOSS: Rs 240

The stock has provided a breakout from the falling trend line with an increase in volumes and buy crossover in it momentum indicator MACD. The move prior to this fall was an impulsive move and with this breakout another impulse on the way up is expected.

M&M:  BUY 

TARGET: Rs 701 

STOP LOSS: Rs 651

The stock has provided a breakout from the downtrend line resistance with a positive divergence on MACD on the weekly and daily charts. With this, it has confirmed higher tops and higher bottoms. So, we recommend buying this stock for the target of Rs 701 with a stop loss of Rs 651.

====================================

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