Nifty Outlook
Nifty saw a strong rebound from the immediate support of 7500 as it resumed its up move. It breached above the oscillating range of 7750-7500 with a 'Run Away Gap' reinstating the bullish momentum. A sustained price action during the week could further extend the momentum & push it beyond 8000. Only a breach below 7700 (Run Away Gap) would stall the momentum & push nifty within a broad trading range of 7500-8000. Short term traders could initiate longs on dips to 7800 with trading stop placed at 7700 and immediate target of 8000.
BAJAJ AUTO
Reco: BUY
Last Close: 2410
Target : 3100
Bajaj Auto saw a rebound from its long term support. Positive sector outlook & fresh breakout from the consolidation indicates momentum to accelerate in the coming weeks. Bajaj Auto could be accumulated with a stop at Rs 2410 for a potential pattern target upto Rs 3100.
JK Lakshmi Cement
Reco: BUY
Last Close: 366
Target : 422
Positive sector outlook & fresh breakout from a continuation pattern augurs well for the momentum to continue. JK Laxmi Cement could be bought with a stop at Rs 340 for a pattern target upto Rs 422.
REC LTD
Reco: SELL
Last Close: 160
Target : 150
Breakdown from the continuation pattern indicates weakness to persist. RECL is expected to continue its down trend & hence the stock could be short sold with a trading stop at Rs 163.50 for a target up to Rs 150.
Nifty saw a strong rebound from the immediate support of 7500 as it resumed its up move. It breached above the oscillating range of 7750-7500 with a 'Run Away Gap' reinstating the bullish momentum. A sustained price action during the week could further extend the momentum & push it beyond 8000. Only a breach below 7700 (Run Away Gap) would stall the momentum & push nifty within a broad trading range of 7500-8000. Short term traders could initiate longs on dips to 7800 with trading stop placed at 7700 and immediate target of 8000.
BAJAJ AUTO
Reco: BUY
Last Close: 2410
Target : 3100
Bajaj Auto saw a rebound from its long term support. Positive sector outlook & fresh breakout from the consolidation indicates momentum to accelerate in the coming weeks. Bajaj Auto could be accumulated with a stop at Rs 2410 for a potential pattern target upto Rs 3100.
JK Lakshmi Cement
Reco: BUY
Last Close: 366
Target : 422
Positive sector outlook & fresh breakout from a continuation pattern augurs well for the momentum to continue. JK Laxmi Cement could be bought with a stop at Rs 340 for a pattern target upto Rs 422.
REC LTD
Reco: SELL
Last Close: 160
Target : 150
Breakdown from the continuation pattern indicates weakness to persist. RECL is expected to continue its down trend & hence the stock could be short sold with a trading stop at Rs 163.50 for a target up to Rs 150.
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.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. 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