Buy Asian Paints, M&M Financial Services; sell ONGC: Anand Rathi

Here are a few trading ideas from Chandan Taparia of Anand Rathi:

M&M FINANCIAL SERVICES: BUY
STOP LOSS: Rs 292
TARGET: Rs 312

The stock has been making lower top lower bottom formation from last sixteen weeks and held onto its gains above its moving averages. It gave a breakout after a consolidation of last eleven trading sessions and formed strong bullish candle. Thus recommending to buy the stock with the stop loss of Rs 292 for the upside immediate target of Rs 312 levels.
 
ASIAN PAINTS: BUY
STOP LOSS: Rs 918
TARGET: Rs 977

The stock was hovering around its lifetime high levels even after selling pressure witnessed in the broader market. It had witnessed a strong rally from Rs 926 to Rs 972 levels and after that it witnessed a profit booking decline till Rs 940 levels. However, the profit taking took a pause and the stock again started to move which has bullish implication. According to the current placement of the stock an up move towards Rs 977 and higher levels cannot be ruled out. So, one can buy the stock with the stop loss of Rs 918 for the upside target of Rs 977 levels.
   
ONGC: SELL
STOP LOSS: Rs 215
TARGET: Rs 200

The stock failed to sustain above its 215 levels and broke its immediate support of Rs 210 - Rs 209 levels. It has been continuously witnessing selling and making lower top –lower bottom formation from last 21 series. It is witnessing built up of short position and has a tendency of witnessing selling at every minor attempt to bounce. Thus the overall trend of the stock is intact to negative. One can sell the stock with the stop loss of Rs 215 for the downside immediate target of Rs 200 levels.
 
SYNDICATE BANK: SELL
STOP LOSS: Rs 64.50
TARGET: Rs 56.75

The stock has been making lower highs from last four trading sessions and gave the lowest daily close of last fifty one trading sessions. It has been making lower top – lower bottom from last four weeks and is continuously trading in bears grip. It is witnessing built up of short position and shorts are intact in the counter with short rollover from previous series to current series. So, one can sell the stock with the stop loss Rs 64.50 for the downside immediate target of Rs 56.75 levels.

Disclaimer: We are suggesting all these stocks to our clients but no personal holdings.

Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi