 "Buy BPCL, Bajaj Finance says Shubham Agarwal of MOSL")
Nifty Outlook
Pullback within the overall downtrend is continuing . If it sustains it could create 100-150 points more headroom. Since the index is around the breakdown zone an exhaustion is keenly awaited followed by a reversal pattern which could reinstate the medium term downtrend.
BAJAJ FINANCE: BUY
Last Close: Rs 5,737
Target : Rs 6,010
Bajaj Finance is quoting at life high & the recent breakout from the continuation pattern indicate the uptrend to remain intact. The current momentum could in Bajaj finance could be participated with a stop Loss of Rs 5,620.
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BPCL: BUY
Last Close: Rs 904
Target: Rs 980
Occurrence of a ‘Piercing Line’ pattern re-confirms the near term support to remain intact. The recent decline & the reversal pattern provides a favorable reward to risk opportunity for fresh longs. BPCL could be participated with a stop Loss of Rs 880
SBI : SELL
Last Close: Rs 231
Target: Rs 200
SBIN saw a breakdown from a consolidation. The pattern breakdown is in conjunction with the existing trend & seems to have now opened up fresh room on the downside. Pullback to the tune off 234 would make the setup more favorable for creating shorts with a stop Loss of above Rs 241.
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