 "Buy SBI, Amara Raja Batteries; Sell Vedanta: Shubham Agarwal")
Nifty outlook
Nifty saw a ‘Shadow’ which is a first positive sign on the daily chart which can be defined as a ‘Selling Climax’ formed at an isolated level. This defines the risk to be limited to 7620 and only below the same, the downside would accelerate and the pattern will get negated. So far, odds favor a bottom in the zone of 7650-7860 & a possibility of a reversal could be considered. Amongst sectors Banks, IT, Services, Energy & Auto could lead the revival once the trend unfolds. Whereas Metals, Commodities & Realty could continue to deteriorate.
State Bank of India (SBIN)
Reco: BUY
Target: Rs 330
SBIN seems to be in its final leg of the decline & the occurrence of the ‘Bullish hammer’ near 240 re-confirms the support zone. The recent decline presents a good reward to risk opportunity to add portfolio longs with a stop below 230 & an initial target upto 330.
Amara Raja Batteries
Reco: BUY
Last Close: Rs 1081
Target: Rs 1260
Despite the correction in Nifty, Amaraja Battery has been placed strong. As the scrip is less correlated with Nifty, traders can take the bet on the long side. It has confirmed a breakout from a continuation pattern which is an added indication within the overall up-trend. Buy for a target of 1260 with a stop at 1018.
Vedanta Limited
Reco: SELL
Last Close: Rs 86.40
Target: Rs 60
Metals continue to deteriorate. VEDL continues to trend down and the downtrend is not expected to see a firm reversal until it re-tests the level of 60. The scrip can be sold for the said target with a stop at 108.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
Nifty saw a ‘Shadow’ which is a first positive sign on the daily chart which can be defined as a ‘Selling Climax’ formed at an isolated level. This defines the risk to be limited to 7620 and only below the same, the downside would accelerate and the pattern will get negated. So far, odds favor a bottom in the zone of 7650-7860 & a possibility of a reversal could be considered. Amongst sectors Banks, IT, Services, Energy & Auto could lead the revival once the trend unfolds. Whereas Metals, Commodities & Realty could continue to deteriorate.
State Bank of India (SBIN)
Reco: BUY
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Last Close: Rs 253
Target: Rs 330
SBIN seems to be in its final leg of the decline & the occurrence of the ‘Bullish hammer’ near 240 re-confirms the support zone. The recent decline presents a good reward to risk opportunity to add portfolio longs with a stop below 230 & an initial target upto 330.
Amara Raja Batteries
Reco: BUY
Last Close: Rs 1081
Target: Rs 1260
Despite the correction in Nifty, Amaraja Battery has been placed strong. As the scrip is less correlated with Nifty, traders can take the bet on the long side. It has confirmed a breakout from a continuation pattern which is an added indication within the overall up-trend. Buy for a target of 1260 with a stop at 1018.
Vedanta Limited
Reco: SELL
Last Close: Rs 86.40
Target: Rs 60
Metals continue to deteriorate. VEDL continues to trend down and the downtrend is not expected to see a firm reversal until it re-tests the level of 60. The scrip can be sold for the said target with a stop at 108.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities