Trading calls from Anand Rathi: Buy UPL, Ashok Leyland, L&T; sell JSW Steel

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

UPL : BUY

Target: Rs 485

Stop Loss: Rs 449

It has negated its weak structure of making lower top – lower bottom of last 6-7 weeks and now started to move upwards after taking multiple support near to Rs 430-435 zones. It has also come out from its recent consolidation phase of last twelve trading sessions and has formed a bullish head and shoulder pattern on daily chart. Mechanical indicators are also giving positive divergence for a fresh buying opportunity. Thus recommending the traders to buy the stock with the stop loss Rs 449 for the upside immediate target of Rs 485 levels.
 
 
ASHOK LEYLAND : BUY

Target: Rs 98

Stop Loss: Rs 90

The overall trend of the stock is intact to positive and it is continuously taking support at its rising support trend line. It negated the negative pattern of last four trading sessions of making lower highs- lower lows and edged higher. Thus recommending the traders to buy the stock with the stop loss Rs 90 for the upside immediate target of Rs 98 levels.

 
LARSEN & TOUBRO : BUY

Target: Rs 1,616

Stop Loss: Rs 1,502

In the beginning of October series it took support near the Rs 1420 zones and noticeably this support is holding well from last seventeen series. It is turning from the lower band of the trading range and continuously holding the gains above 1500-1520 zones even after the market volatility. It has immediate hurdle at Rs 1570 zones and above that fresh up move cannot be ruled out in the stock. Thus recommending the traders to buy the stock with the stop loss Rs 1502 for the upside immediate target of Rs 1616 levels.
 

JSW STEEL: SELL

Target: Rs 880

Stop Loss: Rs 945


It failed to cross immediate hurdle of Rs 935 zones after a bounce back of last eight trading sessions. Overall major trend of the stock is negative and after the recent bounce back move provides a fresh opportunity to sell the stock. We have seen long liquidation followed by built up of shorts. We are expecting this weakness to continue for next coming sessions. So, one can sell the stock with the stop loss of Rs 945 for the downside target of Rs 880 levels.


Disclaimer: We are suggesting all these stocks to our clients but no personal holdings.

Chandan Taparia is a technical analyst with Anand Rathi Retail Research