 "Buy M&M Financials, Emami, PI Industries: Motilal Oswal")
Nifty Outlook
Post the phenomenal run in last three sessions, Nifty commenced the week on a modest note. The momentum indicator RSI has now reached the overbought zone but there is no sign of weakness or reversal on the absolute price scale. The weekly formation of ‘Rising Three’ augurs well for the bullish trend to remain intact & an extended move towards 8300 could be witnessed. Only a breach below 8060 could result into termination of the existing up move.
M&M FINANCIALS: BUY
Last Close: Rs 328
Target : Rs 360
Stop Loss: Rs 310
Positive sector outlook & fresh breakout from the continuation pattern on the daily scale augurs well for momentum to continue. We expect this bullish momentum to push the stock towards Rs 360 zone. Longs could be added with a stop below Rs 310.
EMAMI: BUY
Last Close: Rs 1023
Target : Rs 1140
Stop Loss: Rs 980
Emami Ltd. saw a breakout from the ‘Rounding formation’ with significant volumes. The occurrence of the ‘Bullish Harami’ on the daily scale marks the termination of the pullback move. We expect Emami to resume its upmove & hence the stock could be bought with a stop below Rs 980 for an immediate target upto Rs 1140.
PI INDS: BUY
Last Close: Rs 671
Target : Rs 780
Stop Loss: Rs 620
Yearlong consolidation now seems mature. A ‘Rising Three’ formation on the weekly scale augurs well for the existing momentum to continue. The pattern is well supported with incremental volumes & augurs well for the breakout. We expect the momentum to accelerate once above Rs 700 which could push the stocks towards Rs 780. Fresh longs could be added with a trading stop below Rs 620.
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
