The latest analysis and commentary by stock market guru Chandan Taparia of Motilal Oswal Securities on what is moving the markets today. Check out his top stock recommendations.
He spoke at length about Mindtree, United Spirits, Aurobindo Pharma, and ACC.
Speaking about individual stocks, Taparia said, “First trade is buy on Mindtree. The stock has given a consolidation breakout. It has managed to surpass multiple hurdle of Rs 945-950 zone. It is trading at its 5-6 months high and given a consolidation breakout with recent highest daily close. We have seen built up of long positions with bullish candle on the daily scale. So recommending to go long on Mindtree with a stop loss of Rs 933 and the stock has potential to move towards Rs 993 kind of level on the higher side.”
“Second trade that is buy on United Spirts. The stock has recently surpassed its falling supply trend line. It retested the same and turned higher. It formed a bullish engulfing pattern, taken support at 50 day exponential moving average. We have seen some short covering and now addition of fresh longs can take it to higher levels. So consolidation breakout and multiple price positive setup indicates up move in the stock. One can buy with a stop loss of Rs 575 for an up move towards Rs 620 level,” he added.
On option side, Taparia said, “Buy Aurobindo Pharma. The stock is holding the gains. It has seen strong breakout in last couple of trading session forming a small rounding formation. The stock is holding well from the lower levels, it has taken major support and turned higher. The significant trading volume with open interest addition indicates that retest of the resistance could be there in the counter. So here we are expecting an up move towards Rs 805-810. So one can trade with ‘at the money’ Call option of 780 near Rs 20, put a stop loss of Rs 13 and as per the price movement this option can move towards Rs 32-33.”
“On ACC we are recommending to go with Put. The stock is already seeing strong momentum in last 2-3 weeks, but last 3 trading sessions are witnessing some built up of short positions with Call writing activity. The stock which was continuously making higher highs, higher lows has negated the same and has started to form lower highs, lower lows. So there is potential to retest the major support of Rs 1,510-1,500 zones. So to grab this opportunity, one can trade with ‘at the money’ Put of 1,540 near the current price with a stop loss of Rs 18 and this Put can move towards Rs 53 if the stock goes towards Rs 1,510-1,500 zone,”Disclaimer:
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