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Here are a few trading ideas from Chandan Taparia of Anand Rathi for Friday's session:
BUY TECH MAHINDRA
The stock has taken support at its 50 DMA and is set to start new rally after the decline seen in the initial part of the week. It has been making higher top higher bottom from last two months and is showing strength to head towards Rs 485 and higher levels. Thus one can buy the stock with the stoploss of Rs 455 for the upside immediate target of Rs 485.
BUY ASHOK LEYLAND
The stock has taken multiple supports on its daily chart and is giving the signs of bottom formation after its recent decline. It surpassed the immediate hurdle of Rs 79 and snapped most of the losses of previous week and now it is well placed to head towards Rs 82.50 and higher levels. Thus recommending buying the stock with the stoploss of Rs 75 for the upside immediate target of Rs 82.50 levels.
BUY STATE BANK OF INDIA
The stock gave a breakout from its consolidation phase and surpassed the hurdle of Rs 264. It witnessed built up of long position with open interest addition of around 3% in previous session thus supporting our positive view in the stock. It was holding onto the support base even after the sharp declines in the Bank index, thus indicating inherit strength in the counter. So, one can buy the stock with the stoploss of Rs 257 for the upside immediate target of Rs 274.
SELL JSW STEEL
The stock failed to surpass its Rs 1680 and has formed a short-term negative price structure. It has added fresh short position which may support our negative view in the counter. It has been making lower top –lower bottom formation from last four weeks and according to its current price placement the stock may drift towards Rs 1618 and lower levels. One can sell the stock on a small bounce back move with strict stoploss of Rs 1720 for the downside target of Rs 1618.
Disclaimer: We are suggesting these stocks to our clients but not personal holdings.
Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi
