Buy Tata Steel, HCL Tech, Havells; sell Asian Paints: Anand Rathi

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

BUY HAVELLS: The stock is moving after a consolidation of last 13 trading sessions and surpassed its hurdle of Rs 364-Rs 365 levels with rising trading volumes. It held on the support above its 50 exponential moving average and the support base is also shifting higher. One can buy the stock with the stop loss of Rs 350 for the upside target of Rs 375 levels.

BUY TATA STEEL: The stock opened near its support of Rs 325 zones but with the help of sustained buying at the opening levels it managed to cross and hold above the immediate hurdle of Rs 333.50 levels. It pared the losses made in previous week and took support at the lower band of the recent trading range. It is set to move higher towards Rs 345 and higher levels. So, recommending selling the stock with the stop loss of Rs 322 for the downside target of Rs 345 levels.
 

BUY HCL TECH: The stock surpassed its resistance of Rs 760-Rs 763 zones after the struggle of last thirty six trading sessions. The positive price action was led by short covering followed by built up of long position. It has formed a bullish price structure and according to its current placement an up move towards Rs 792 and higher levels cannot be ruled out. Thus recommending buying the stock with the stop loss of Rs 744 for the upside immediate target of Rs 792 levels.

SELL ASIAN PAINTS: The stock failed to sustain the higher levels in the absence of buying interest and started to decline. It formed a negative structure and witnessed fresh built up of short position with open interest addition of around 2% even after the positive move seen in the broader market in previous session. So, recommending selling the stock with the stop loss of Rs 1,030 for the downside target of Rs 970 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