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Nifty Outlook
A ‘Spinning Top’ formation near the upper end of the range coupled with the crossover of the momentum oscillator RSI at the overbought zone augurs well for a corrective move within the uptrend. A breach below 8150 would trigger bearish momentum & activate the expected corrective move. Hence though the broader trend remains bullish an intermediate correction towards 8000 cannot be ruled out at this juncture.
FINOLEX CABLES: BUY
Target : Rs 400
Stop Loss: Rs 345
Breakout from the 'Rounding' followed by the continuation pattern augurs well for the uptrend to remain intact. A breach above 362 would amplify the momentum. Momentum could be traded with a stop below Rs 345 for a pattern target upto Rs 400.
ACC: SELL
Target : Rs 1500
Stop Loss: Rs 1565
Post the stupendous up move the stock is now show traces of exhaustion in momentum. Negative divergence on the RSI supports the expected correction. Trading shorts could be initiated with a stop above Rs 1565 for an initial target upto Rs 1500.
AUROBINDO PHARMA: SELL
Target : Rs 680
Stop Loss: Rs 781
Negative sector outlook & ‘Falling Three’ formation on the monthly scale. Fresh breakdown from the continuation pattern on the daily scale indicates weakness to persist. Fresh shorts could be initiated with a stop above Rs 781 for a decline up to Rs 680.
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
