 "Technical picks from Motilal Oswal: Buy TCS, Bosch; Sell M&M")
Nifty Outlook
As per Dual distribution theory, Nifty is now approaching the resistance area with the RSI inching towards 65. Diminishing momentum & proximal resistance at 8450 remains a concern; however we are yet to witness any sign of reversal on the absolute scale. Hence participating in the up move with a trail stop strategy at 8180 would be prudent.
TCS: BUY
Target : Rs 2,750
Stop Loss: 2,480
TCS has been oscillating within the intermediate range of Rs 2750-2450. The recent correction saw the stock stabilizing near the lower end of the range. The occurrence of a ‘Bullish Harami’ at the support indicates the oscillation to continue. TCS could be bought with stop at Rs 2480 for a target upto Rs 2750
BOSCH: BUY
Target : Rs 24,000
Stop Loss: Rs 20,200
Reversal from the lower end of the oscillating band; followed by a continuation pattern on the immediate scale confirms strength in the up move. The setup provides a good reward to risk opportunity .Bosch could be accumulated with a stop at Rs 20200 for a target upto Rs 24000 (Higher end of the band).
MAHINDRA & MAHINDRA: SELL
Target : Rs 1,140
Stop Loss: Rs 1,298
Post the pullback M&M saw a stiff resistance near 1290-1300 (61.8% Retracement of its prior move). The week gone has formed a 'Bearish Engulfing' indicating fresh weakness. Pullback if any up to Rs 1270 could be utilized to create fresh short positions with a stop above Rs 1298 for a target up to Rs 1140.
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
As per Dual distribution theory, Nifty is now approaching the resistance area with the RSI inching towards 65. Diminishing momentum & proximal resistance at 8450 remains a concern; however we are yet to witness any sign of reversal on the absolute scale. Hence participating in the up move with a trail stop strategy at 8180 would be prudent.
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Target : Rs 2,750
Stop Loss: 2,480
TCS has been oscillating within the intermediate range of Rs 2750-2450. The recent correction saw the stock stabilizing near the lower end of the range. The occurrence of a ‘Bullish Harami’ at the support indicates the oscillation to continue. TCS could be bought with stop at Rs 2480 for a target upto Rs 2750
BOSCH: BUY
Target : Rs 24,000
Stop Loss: Rs 20,200
Reversal from the lower end of the oscillating band; followed by a continuation pattern on the immediate scale confirms strength in the up move. The setup provides a good reward to risk opportunity .Bosch could be accumulated with a stop at Rs 20200 for a target upto Rs 24000 (Higher end of the band).
MAHINDRA & MAHINDRA: SELL
Target : Rs 1,140
Stop Loss: Rs 1,298
Post the pullback M&M saw a stiff resistance near 1290-1300 (61.8% Retracement of its prior move). The week gone has formed a 'Bearish Engulfing' indicating fresh weakness. Pullback if any up to Rs 1270 could be utilized to create fresh short positions with a stop above Rs 1298 for a target up to Rs 1140.
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