 "Index rejig and your stocks")
Here are a few trading ideas from Shubham Agarwal of Motilal Oswal Securities:
Nifty Outlook
Nifty saw a breakdown from the immediate oscillating range of 7,750-7,600. Immediate support for the index is placed at 7,500 below which 7,400 -7,300 could be an immediate movement. Pullback if any will make the reward to risk lucrative for liquidating long positions with an expectation of buying lower. Short term traders could resort to a temporary sell on rise mode with a stop at 7,740.
ASIAN PAINTS
Reco: BUY
Last Close: Rs 860
Target: Rs 910
Asian paints has been oscillating within the trading range of Rs 850-Rs 910. The occurrence of a ‘Bullish Engulfing’ formation at the lower end of the range re-confirmed the support & augurs well for a through back move towards Rs 910. The recent correction provides a good reward to risk opportunity for fresh longs with a stop below Rs 840 & a pattern target upto Rs 910.
CADILA HEALTHCARE
Reco: SELL
Last Close: Rs 317.7
Target: Rs 295
Negative sector outlook & a mature continuation pattern re-affirms weakness to persist. Cadila Healthcare could be short sold with a stop at Rs 325.30 for a target upto Rs 295.
ZEE ENTERTAINMENT
Reco: SELL
Last Close: Rs 394
Target: Rs 360
ZEEL post the 'Double Top' formation has been trending down. Negative sector outlook & pullback towards the 'Wedge' provides a good reward to risk opportunity for fresh shorts. ZEEL could be short sold with a stop at Rs 400 & a target upto Rs 360.
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
