 "Stock picks from Motilal Oswal")
Nifty Outlook
8330 remains a significant level to track as 'Spinning Top' formation near the resistance re-confirms the significance of the level. A sustained breach above the same would eject the nifty out of the ongoing consolidating range of 8300-8160 & push it towards 8450.While a breach below 8160 would activate the bearish momentum.
HERO MOTO CORP
Reco: BUY
Last Close: Rs 3079
Target : Rs 3170
Positive sector outlook & rebound from the retracement support augurs well for a stable up move. Hero Moto Corp. has been oscillating within the broad range of Rs 3150-3000. Proximity towards the lower bound of the range provides a favorable reward to risk for short term longs. Accumulate with a stop below 3000 for a target upto Rs 3170.
BPCL
Reco: BUY
Last Close: Rs 1023
Target : Rs 1140
Mature continuation pattern on the immediate scale augurs well for outperformance. A breach above Rs 1030 would activate the pattern & push the stock towards its pattern target placed at Rs 1140 which could be traded with a stop at Rs 1000.
AUROPHARMA
Reco: SELL
Last Close: Rs 727
Target : Rs 680
Falling Three' formation on the monthly scale exhibits weakness to persist. Breakdown from the continuation pattern re-confirms the bearish trend. Pullback if any could be utilized to create fresh shorts with a stop at Rs 751 for an initial target upto Rs 680.
OPTION STRATEGY
Nifty Reverse Iron Condor Spread
Buy July 8400 CE 1 lot
Buy July 8100 PE 1lot
Sell July 7900 PE 1 lot
Sell July 8600 CE 1 lot
Target: Rs.6500 SL: RS. 3500
Rationale:
1.Nifty data shows option indicative band for July series at 8000-8500
2. India Vix, volatility Index, The sentiment indicator inch above 18%, indicating expected cautiousness ahead of global event
3 Considering rising volatility, Hedge strategy, Reverse Iron Condor is recommended
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The author is an Equity Technical Analyst at Motilal Oswal
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