 "Buy Bajaj Finance, Indraprastha Gas says Shubham Agarwal of MOSL")
Nifty Outlook
Nifty has taken support close to the nearest swing low & has formed a 'Piercing Line' pattern for which the action is already been seen. Due to the fact that the 'Piercing Line' pattern on the weekly scale has formed as an interim support but the medium term trend lacks confirmation. Thereby it lacks decisive directional bias for immediate term & creates expectation of consolidation. Until then one should adhere to 7680 as a Stop loss for short term longs if any.
BAJAJ FINANCE: BUY
Last Close: Rs 5,870
Target: Rs 6,430
Despite the market volatility Bajaj finance has displayed a steady trend. Bajaj Finance has been a relative outperformer & a fresh breakout from the consolidation augurs well for the secular uptrend to remain intact. The stock is poised well for an accelerated move & thus could be participated with a stop below of Rs 5,620.
INDRAPRASTHA GAS: BUY
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Last Close: Rs 509
Target: Rs 560
Fresh breakout from consolidation with significant volumes on the medium term scale augurs well for the secular uptrend to remain intact. Momentum is expected to continue & hence longs could be participated with a stop below Rs 483
JUST DIAL: SELL
Last Close: Rs 868
Target: Rs 740
Just dial has been deteriorating & the occurrence of 'Bearish Engulfing' patterns re-confirms the weakness. We expect the stock to revisit its intermediate lows & continue its downtrend which could be participated with a stop Loss at Rs 937.
Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities