Here are a few trading ideas by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal OswalSecurities:
Nifty Outlook
The occurrence of ‘Doji’ on the weekly scale warrants towards a confined action within a tight range of 8,250-8,050 for the week. A decisive breach outside the pattern could attract momentum. Though the daily RSI compliments the ongoing pullback move which could get arrested soon as the larger degree trend remains weak. Hence mean reversion strategies could be adopted near extremes until a decisive breach is not evident.
CIPLA
Reco: BUY
Also Read
Last Close: Rs 573
Target: Rs 620
Breakout from the pennant formation on the daily scale augurs well for an extended upmove. The setup provides another good reward to risk opportunity for traders to add longs with a stop below Rs 560 and target upto Rs 620.
POWERGRID
Reco: BUY
Last Close: Rs 185
Target: Rs 213
Positive sector outlook & pullback within the continuation provides a good reward to risk opportunity for fresh longs. We expect the secular upmove to continue. Trading longs can also be considered with a stop at Rs 179 and sequential targets of Rs 195-213.
M&M FINANCE
Reco: SELL
Last Close: Rs 273
Target: Rs 260
Occurrence of the ‘Evening Star’ formation close to its 200-DEMA and the recent breach below the key pivot level augurs well for weakness to extend further. Pullback if any towards 280 should be utilized to create shorts with a stop above Rs 291 and target Rs 260.
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
