Trading ideas from Anand Rathi: Buy IRB Infra, UPL

Here are a few trading ideas from Chandan Taparia of Anand Rathi for Friday's session.

BUY IRB INFRASTRUCTURE DEVELOPERS: The stock has taken multiple supports on its daily chart and snapped the losses of previous week. It is turning from oversold territory in terms of mechanical indicator and looks attractive in terms of risk reward ratio. It has taken a support at the 200 weekly moving average and is showing the potential to move towards 194 and higher levels. So one can buy the stock to grab the opportunity of attractive risk reward ratio with the stop loss of Rs 182 for the upside immediate target of Rs 194.

 

BUY UPL: The stock held onto the support and moved above its consolidation phase. It negated the immediate negative trend of making lower highs - lower lows of last four weeks and snapped the losses made  is last two weeks of the November. It surpassed the hurdle of 650 levels and gave the highest daily close of last fourteen trading sessions.  Thus recommending to buy the stock with the stop loss of Rs 629 for the upside immediate target of Rs 668.

SELL INDIA CEMENTS: The stock broke the support of 116 levels and has formed a negative price structure. The stock failed to surpass its 122-123 levels and has added fresh short position with open interest addition of around 8% in previous session which may support our negative view in the counter. We have fundamentally contrary view on the stock but suggesting a trade for immediate profit booking decline towards 108.50 levels. One can sell the stock on a small bounce back move with strict stop loss of Rs 116 for the downside target of Rs 108.50.

SELL DLF: The stock broke the support of 113 zones as failed to surpass the hurdle of 118 levels and started witnessed selling pressure. It has been witnessing selling at every minor attempt to bounce indicating weakness in the counter. It has added shorts of around 9% in last two trading sessions thus supporting our negative view in the counter. Thus one can sell with the stop loss of Rs 115 for the downside immediate target of Rs 107.50.

Disclaimer: We are suggesting these stocks to our clients but not personal holdings.

Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi