 "Motilal Oswal recommends buy on BEL, ONGC, ITC")
Nifty Outlook
Proximity towards the lower end of the 'Falling Channel' coupled with the occurrence of a 'Bullish Harami' raises the expectation of a reversal. Only a sustained move beyond the range of 8750-8500 could see sharp momentum; until then expect the index to oscillate within the channel pattern. Further longs could be added on a decisive close above 8600 which could confirm the mean reversion within the channel.
BEL
Reco: BUY
Last Close: Rs 1265
Target : Rs 1400
BEL has been oscillating within a broad range of Rs 1400-1100. The recent pullback post the breakout on the weekly scale provides a good trading opportunity to add longs with a stop below Rs 1220 and a target up to Rs 1400 could be expected.
ONGC
Reco: BUY
Last Close: Rs 272.40
Target : Rs 286
Positive sector outlook & continuation pattern on the daily scale augurs well for the stock to continue its outperformance. Trading longs could be added with a stop at Rs 264 for an initial target upto Rs 286.
ITC.
Reco: BUY
Last Close: Rs 240.6
Target : Rs 255
Occurrence of a 'Bullish Harami' near the lower range of the channel along with its RSI approaching its oversold zone. ITC is also quoting near its 200 days .The setup provides a good reward to risk opportunity for short term longs with a stop below Rs 230 and an initial target upto Rs 255.
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
