BAJAJ AUTO: BUY
Target: Rs 2,405
Stop Loss: Rs 2264
The stock is rising from last seven trading sessions and forming higher top higher bottom formation. It crossed and closed above the hurdle of Rs 2350 levels and gave the highest daily close of last twenty trading sessions. It managed to hold the support at its 50 DMA even after profit taking decline seen in the broader market and now we are expecting a continuation of the positive move in the stock towards Rs 2405 and higher levels. Thus recommending to buy the stock with the stop loss of Rs 2264 for the upside target of Rs 2405 levels.
DELTA CORP: BUY
Target: Rs 71
Stop Loss: Rs 63.50
The stock has given a price volume breakout after a consolidation of last twelve trading sessions. It has formed an extended pole and flag on daily chart and crossed its hurdle of Rs 65.50-66 levels. It crossed its 50 DMA and gave the highest daily close of last thirty two trading sessions. Thus recommending to buy the stock with the stop loss of Rs 63.50 for the upside target of Rs 71 levels.
BHEL : SELL
Target: Rs 110
Stop Loss: Rs 118
It is continuously is in bear grip and not giving any meaningful sign of recovering. Recently, it failed to cross and hold above its hurdle of Rs 118-120 zones even after a positive move witnessed in previous two weeks and fell back in the bears grip with rising selling pressure. It has been making lower top – lower bottom formation and fresh Call writing at Rs 120 and 115 strikes also support our negative view on the counter. One can sell the stock with stop loss of Rs 118 for the downside target of Rs 110 levels.
BANKINDIA: SELL
Target: Rs 90.50
Stop Loss: Rs 98
The stock failed to cross its hurdle of Rs 100 levels in the previous week and is continuously finding hurdle at every resistance levels even after the recovery in the broader market. It has been adding fresh shorts at every meaning full resistance levels and witnessing call writing Rs 95 and 97.50 strikes. It has been making lower top – lower bottom formation on daily, weekly and monthly chart and has a tendency of witnessing selling pressure at every minor attempt to bounce back. One can sell the stock with stop loss of Rs 98 for the downside target of Rs 90.50 levels.
Disclaimer : We are suggesting all these stocks to our clients but no personal holdings.
Chandan Taparia is a derivatice analyst with Anand Rathi
