Nifty Outlook
A ‘Doji’ formation on the daily scale augurs well for the ongoing uptrend. There is no sign of weakness on the absolute price as Nifty continues to head higher towards 7900( 200 DMA) which also coincides with the upper end of the weekly channel. A breach only below 7595 would mark the termination of the existing up move & serves as a trail stop for longs.
SBIN : BUY
Target : Rs 220
Stop Loss: Rs 188
Positive sector outlook & breakout from the rounding bottom indicates an up move till Rs 220. The recent pullback provides a good reward to risk opportunity to create fresh longs with a stop below Rs 188.
Shriram Transport Fin: BUY
Target : Rs 1000
Stop Loss: Rs 939
SRTF has been oscillating within the broad range of Rs 1000-750. Fresh breakout from a continuation pattern indicates momentum to persist. We expect stock to head towards the upper end of the oscillating range. Momentum could be participated with a stop below Rs 939.
Emami: BUY
Target : Rs 1040
Stop Loss: Rs 890
Morning Star on the daily scale reconfirms the multiple support zone at Rs 900. The stock has seen a healthy correction so far & the pattern points towards a ‘Double Bottom’ scenario. Its proximity towards the support zone provides a favorable risk to reward opportunity. Traders could also participate the move with a stop below Rs 890 for an immediate bounce towards Rs 1040.
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.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
