Stock picks from Motilal Oswal Research

Sacchitanand Uttekar, an equity technical analyst at Motilal Oswal shares his views on the markets

Nifty Outlook

Consecutive narrow ranged formations on the weekly scale augurs well for consolidation within the ongoing uptrend. On the daily scale, the Nifty has been progressing well within the channel pattern with no signs of termination. The ongoing bullish trending sequence could deteriorate in case of a breach below 8640. While a sustained move above 8900 during the week could attract momentum & push the Nifty towards the upper end of the pattern. Trading longs should be maintained with a stop at 8630.

HDFC LTD.

Reco:  BUY

Last Close: Rs 1412.45

Target : Rs 1495

The recent breakout above its intermediate resistance along with the 'Rising Three' formation on the weekly scale augurs well for the uptrend to remain intact. We expect the stock to witness outperformance in the coming weeks & hence long positions could be added with a stop below Rs 1390 for target of Rs 1495.

 

DIVISLAB

Reco: BUY

Last Close: Rs 857.45

Target : Rs 895

Positive sector outlook & continuation pattern about to mature on the weekly scale. A breakout above Rs 1360 could attract momentum. Trading longs could be added with a stop below Rs 1284.

BEL LTD.

Reco: BUY

Last Close: Rs 1268.70

Target : Rs 1400

Breakout from the continuation pattern on the weekly scale augurs well for momentum. Positional longs could be added with a stop below Rs 1220 for a target upto Rs 1400.

DERIVATIVE STRATEGY

Option Strategy

LICHSGFIN:

Long Put

Buy 560 SEP PE 1 LOT

TARGET: 7 Sl:0

Rationale:

1.       Lichsgfin  is consolidating in past couple of session

2.       Unwinding in 560 PE could put downward pressure

3.       Considering we are playing momentum, Long Put is recommended

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Sacchitanand Uttekar, is an equity technical analyst at Motilal Oswal

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