Watch the interview of Chandan Taparia, Derivative & Technical Analyst at Anand Rathi Securities with Ekta Batra & Sonia Shenoy on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.
Below is the verbatim transcript of Chandan Taparia's interview with CNBC-TV18
Coal India
"Coal India is moving after the long consolidation above Rs 400. The stock was trading in a range of Rs 350-400 for last one year and today it has given a strong breakout above Rs 400 with fresh build up of long positions. In last three-four trading sessions, we have seen some short covering activity and now fresh long may take it to Rs 420-425. So, it is a classical example of fresh break out above Rs 400 zone and till it holds above Rs 400 levels, it has potential to move towards Rs 425 and then higher territory."
"Looking at the entire price structure, I am suggesting to go for 410 Call. Keep the stop loss of around Rs 5 and trade for the upside target of Rs 18," he said.
Larsen & Toubro
"Larsen & Toubro (L&T) is holding the gains even after market declining, it is clearly outperforming the broader indices and making the higher tops higher bottom formation from last three weeks. Recently it has taken multiple support near to Rs 1650 and also witnessing some fresh Put writing."
"We are expecting it to see the next round of momentum towards Rs 1,750 and then higher territory, so here we are recommending to go for 1700 Call which is trading near to Rs 35, keep the stop loss of Rs 25 and trade for the upside target of Rs 55," he said.
Bharti Airtel
"Bharti Airtel and Idea Cellular are holding the gains from last five six trading sessions. Bharti earlier was finding hurdle near to Rs 400-405 but the way it has crossed that levels with higher delivery volumes indicate that longs are intact in the counter and holding above Rs 420 may see the next move towards Rs 440."
"We are witnessing some positive to range bound move, so recommending to go for the bull call spread. Buy 420 Call and sell 440 Call of Bharti Airtel. In the entire strategy, the risk is around 7 points and if stock move towards Rs 440, then we are going to get profit of Rs 13. So, it is 1:2 risk-reward ratio and we can get this positive move with risk of only Rs 3500 per strategy," he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
