Nifty Outlook
Nifty remains consolidative within the immediate range of 6850-7250. The momentum indicator has retested the negative extreme hence raises the odds with a medium term perspective in favor of bulls. However, the price action will confirm the same only on a move above 7250.
PIDILITE IND.
Reco: BUY
Last Close: Rs 600
Target : Rs 710
Pidilite Inds. saw a breakout from the yearlong consolidation during the early part of the month. The current pullback provides a good opportunity to create longs with a stop below Rs 588 for a target upto Rs710.
RURAL ELECTRIFICATION CORP
Reco: SELL
Last Close: Rs 156
Target : Rs 140
Multiple continuation patterns indicates weakness to persist. A fresh breach below 155 could accelerate momentum. RECL could be short sold with a stop at Rs 164 & an initial target upto Rs 140.
ALLAHABAD BANK
Reco: SELL
Last Close: Rs 44
Target : Rs 32
Allahabad bank has been trending down & the mature continuation pattern indicates the weakness to persist. Allahabad bank could be sold short with a stop at Rs 49.50 & a pattern target upto Rs 32.
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
