Buy BPCL; sell Maruti Suzuki, Aurobindo Pharma: Motilal Oswal

Here are a few trading calls from Sacchitanand Uttekar, Equity Technical Analyst, Motilal Oswal Securities

Nifty Outlook
 

'Spinning Top' formation near the upper end of the range coupled with the reversion of the momentum oscillator RSI from the overbought zone augurs well for a corrective move within the uptrend. The gap down beginning for the week augurs well for weakness to persist throughout the week.  A breach below 8080 would amplify the bearish momentum & push nifty towards its lower bound placed around 8,000-7,950. Traders could continue their shorts with a trading stop at 8,220.

BPCL: BUY

Last Close: Rs 1,012

Target : Rs 1,140
 

Positive sector outlook & mature continuation pattern on the immediate scale augurs well for outperformance. A breach above Rs 1,020 would activate the pattern & push the stock towards its pattern target placed at Rs 1,140 which could be traded with a Stop Loss at Rs 960.

 

AUROBINDO PHARMA: SELL

Last Close: Rs 755

Target : Rs 680
 

Negative sector outlook along with the 'Falling Three' formation on the monthly scale exhibits weakness to persist. Breakdown from the channel & pullback augurs well for the continuation of the bearish trend. Pullback if any could be utilized to create fresh shorts with a Stop Loss at Rs 775 for a target up to Rs 680.

MARUTI SUZUKI: SELL

Last Close: Rs 4,156

Target : Rs 3,950

Maruti is now placed at the upper end of the oscillating range. Negative divergence on the RSI indicates exhaustion while the ‘Bearish Engulfing’ on the weekly scale augurs well for fresh weakness. Short positions could be initiated with a Stop Loss above Rs 4,210 for a trading target up to Rs 3,950.

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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities