Buy Petronet and Indo Count Industries, says Sacchitanand Uttekar of MOSL

Here are a few trading ideas by Sacchitanand Uttekar, Equity Technical Analyst & PFA at MOSL

Here are a few trading ideas by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities:

Nifty Outlook

Nifty remained confined within its previous day’s range and also formed a ‘Spinning Top’ formation. Though the momentum indicators have entered the overbought zone but there is no sign of exhaustion. Going ahead in the event, the immediate resistance for the move could be around 8,740 (78.6% retracement of the previous weekly wave) while a breach below its previous daily swing low around 8,500 could distort the bullish sequence. Hence, we expect the index to remain within the range in the coming sessions ahead.

PETRONET

Reco: BUY

Last Close: Rs 385

Target : Rs 430

Positive sector outlook and the recent breakout from the triangle formation was well supported with volumes. The current decline provides a good reward to risk opportunity for trading longs. A stop can be placed below Rs 377 for an initial target up to Rs 430.

INDO COUNT INDUSTRIES

Reco: BUY

Last Close: Rs 186.55

Target: Rs 205

Breakout from the Flag formation (Continuation pattern) on the daily scale augurs well for the ongoing trend to remain firm. Trading longs could be considered with a stop below 182 for a pattern target upto 205.

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.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities.