Chart Check: ACC, HDFC Bank, L&T, Ajanta Pharma

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

ACC: BUY
STOP LOSS: Rs 1,505
TARGET: Rs 1,603

The stock formed a “flag and pole pattern” on daily chart which has bullish implication. It gave a breakout from the consolidation phase of last 14 trading sessions and surpassed its hurdle of Rs 1,560-Rs 1,564 levels. It gave the highest daily close of last 52 weeks and at the current price placement the counter is showing the potential to head towards Rs 1,603 and higher levels. One can buy the stock with the stop loss of Rs 1,505 for the upside immediate target of Rs 1,603 levels.
 
HDFC BANK: BUY
STOP LOSS: Rs 1,128
TARGET: Rs 1,200

The stock surpassed its immediate falling supply trend line and negated the pattern of making lower top – lower bottom formation on weekly chart. The medium trend of the stock is intact to positive. Thus suggesting to buy the stock with the stop loss of Rs 1,128 for the upside immediate target of Rs 1,200 levels.

L&T: BUY
STOP LOSS: Rs 1,458
TARGET: Rs 1,550

The stock even after strong rally the bulls are not ready to surrender and have been holding onto the multiple supports near Rs 1,440-Rs 1,450 zones from last 14 trading sessions. The stock snapped the losses of previous four trading sessions recaptured its Rs 1,500 territory. It witnessed built up of long position and even at the current levels indicating that the rally may continue towards Rs 1,550 and higher levels. One can buy the stock with the stop loss of Rs 1,458 for the upside immediate target of Rs 1,550 levels.

AJANTA PHARMA: SELL
STOP LOSS: Rs 1,590
TARGET: Rs 1,490

The stock failed to cross the multiple hurdles of Rs 1,600-Rs 1,610 zones and started to decline. It broke its support of Rs 1,540 levels and witnessed built up of short position with open interest addition of around 10% in previous series. Even after strong upside rally witnessed in the broader market the stock drifted in the negative territory indicating weakness in the counter. So, recommending selling the stock with the stop loss of Rs 1,590 for the downside target of Rs 1,490 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