Anu Jain's top 5 picks for trade today

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Anu Jain's top 5 picks for trade today

Anu Jain of IIFL Private Wealth Management advises traders to buy on Larsen & Toubro, HIndalco, Tata Steel and Dr Reddy’s. However, she has a short call on Adani Enterprise.

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Anu Jain of IIFL Private Wealth Management advises traders to buy on Larsen & Toubro , Hindalco , Tata Steel and Dr Reddy's . However, she has a short call on Adani Enterprise . 

Here are the key levels:

Buy Larsen & Toubro with a target of Rs 1,860 per share and stop loss at Rs 1,575 per share.

 I like the formation here. This is not just a trading call but also an investment call. What I am seeing over the last couple of days is a shift towards buying in infrastructure and probably this is now inching out of the zone that it's been in. It went down up till about those early Rs 1,400. It's looking that it can consolidate at these levels, can check back those Rs 1,580-1,590 levels. So for investors I would say probably you could look on dips to buy it. 

The short-term target is around Rs 1,680-1,675 zone. So for traders that would be the kind of short-term target that they can look at. But for someone who is looking to invest into in for the medium-term, I think should look at targets closer to Rs 1,860-1,900. 

So it's structurally now showing far more strength than it has probably over the last two months and probably every dip should be utilised to get into it. The caveat being that it's a house call and all our clients are invested into it.  

Buy Hindalco with a target of Rs 190 per share on a breach of Rs 179 levels and stop loss at Rs 172 per share.

Over the last couple of days Hindalco has shown strength despite the market at times have seen yesterday and day before when market was kind of on a corrective move, intraday this kind of gaining strength at that time. The open interest also is indicative as well as the charts are indicative of a good formation. I am aware that the market is closer to 5,300.

I would probably trade any of the metal stock with a tighter stop loss and probably I would trade any other stock. But the whole point is that it's the strongest sector which we have seen over the last two months so it's a call which one would have to take with a tighter stop loss. So I would say its closer Rs 176, with a stop loss of about Rs 172. The level of Rs 179 is a resistance but if it kind of takes that off it will probably rush towards Rs 190 level.

So given the way the market is, I would probably say if there is-we are already seeing SGX slightly negative-so probably use a dip to get into it with a tighter stop loss and it's definitely for the riskier trader.

Buy Tata Steel with a target of Rs 690 per share and stop loss at Rs 623 per share.

On the charts looking favourable to kind of go and attempt its 52-week high of about Rs 660. Lot of momentum but as with Hindalco-both the metal counters would have to be a little more careful. At Rs 639 would keep 2% stop loss of abut Rs 623 because there is momentum in both Hindalco and Tata Steel, so if the market were to break levels of 5,300-5310 metals would definitely outperform and they would outperform in a big huge way.

So if this would go Rs 660 and it crosses that is a possibility of Rs 690. But at the same time it's difficult to take a call whether we will attempt 5,300 and cross it. So that's why a very strict stop loss on both the metal counters so that you basically cover that on the downside you know where your limit of stop lossing over limits.

Buy Dr Reddy's with a target of Rs 1,480 per share and stop loss at Rs 1,203 per share.

My targets are about Rs 1,450-1,500 for a longer period of time. If am a trader, probably I will wait for a dip because this is the initial buying. But I feel that probably there will be a lot of follow-up buying which will follow-up from that level. So probably a day or two may go off before you get those levels. In fact this has been continuous coming up in my buy list right from the time it was Rs 1,000-1,100 on dips till Rs 1,100. So it's a good buy at any price for someone who is looking for a safe counter not just to be invested but to trade in.

So if your perspective is slightly longer then you can pick up even at the opening prices which are higher. If you are waiting for a dip and then get into it as a trading call that would also work fine.

Short Adani Enterprise with a target of Rs 458 per share and stop loss at Rs 484 per share.

Adani looks weak. It's basically yesterday made what I call bearish engulfing pattern, which given the fact that market is almost at the top. It's still doing that. It closed little below Rs 480 levels. Rs 479 is a crucial support; similar to what we saw Hindustan Unilever do a couple of days back. So if Rs 479 gets taken off that's why I said if it goes below Rs 479, stays there for a little while then this can attempt Rs 458 odd levels.

So I am basically taking a call. We will watch the market; will watch this and then will give a short call on this.