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Nifty Outlook
‘Double Top’ formation re-confirmed the resistance zone at 8300. The latest rebound wave contains impulse wave characteristics re-affirming the impending bearishness in the future. Pullbacks if any should ideally be utilized to exit longs as the extension of the wave could stretch towards 7700. On the immediate scale the ongoing pullback towards 8160 provides a favorable reward to risk opportunity to short term traders for fresh shorts with a stop at 8220.
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BPCL: BUY
Target : Rs 1140
Stop Loss: Rs 980
Breakout from the continuation pattern on the immediate scale augurs well for outperformance. A breach above Rs 1030 has activated the ‘Flag’ pattern.BPCL could be traded with a stop at Rs 980 for a pattern target up to Rs 1140.
HINDALCO: SELL
Target : Rs 105
Stop Loss: Rs 124
'Double Top' formation with the convergence of the RSI from the overbought zone augurs well for the termination of the existing bullish trend. Pullback towards Rs 120 makes the setup more lucrative to create fresh shorts with a stop at Rs 124 & an immediate down move towards Rs 105.
INFOSYS: SELL
Target : Rs 1100
Stop Loss: Rs 1200
Fresh breakdown from 'Inverse Flag' pattern augurs well for weakness to persist. Infosys could be short sold with a stop at Rs 1200.
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.
Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities
