Buy Coal India, Equitas; Sell BHEL, BPCL: Anand Rathi

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

BUY COALINDIA: The stock surpassed the multiple hurdles of Rs 337 levels and gave the highest daily close of last ten trading sessions. It has been making higher top – higher bottom formation from last fourteen weeks. According to its current price placement, the stock is showing the potential to head towards Rs 347 and higher levels. So, one can buy the stock with the stop loss of Rs 324 for the upside immediate target of Rs 347 levels.

BUY EQUITAS: The stock has taken support on rising trend line and is holding the support base from last four trading sessions. It is holding onto the gains above its 50 DMA and is showing the potential to surpass its immediate hurdle of Rs 184 and head towards Rs 188 levels. Thus recommending buying the stock with the stop loss of Rs 172 for the upside target of Rs 184 levels.

SELL BHEL: The stock failed to surpass its hurdle of Rs 140-142 zones and started to decline. It witnessed built up of short position with an open interest addition of around 4% in previous trading session. It has a tendency of witnessing selling at every minor bounce and expecting the same to continue. Fresh Call writing was seen at Rs 140 and Rs 145 strikes which its keeping its upside limited for next couple of trading sessions. So, one can sell the stock with the stop loss Rs 140 for the downside immediate target of Rs 131 levels.

SELL BPCL: The stock failed to sustain above its Rs 610- Rs 615 levels and negated the hopes of recovery in the stock. It is turning from the resistance levels and shorts are being active in the counter. At its current price juncture it has formed a short term negative pattern and a further decline towards Rs 572 and lower levels cannot be ruled out. One can sell the stock with stop loss of Rs 612 for the downside target of Rs 572 levels.

Disclaimer: We are suggesting these stocks to our clients but not personal holdings

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