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Nifty Outlook
Nifty witnessed yet another narrow range formation post the ‘Doji’; indicating towards consolidation. The index has been trending within the ‘Channel pattern’ & encountering a time & price correction. The lower end of the pattern rests near 8640 & proximity towards the lower end would raise the probability of a mean reversion within the channel. Fresh longs are advocated once a reversal is confirmed on the daily scale within the pattern until then the immediate bias remains neutral.
DIVIS LAB
Reco: BUY
Last Close: 1344.50
Target : 1485
Positive sector outlook & mature continuation pattern on the daily scale raises expectation of a sustained upmove. Breakout above 1380 could accelerate the momentum hence declines within the pattern should be utilized to add longs with a stop below 1270.Long positions could be added with a for an immediate movement towards 1485.
KPIT LTD.
Reco: BUY
Last Close: 132
Target : 145
Inverse hammer confirmed the reversal from the lower end of the triangular pattern. A breach above 135 could accelerate the bullish momentum. Hence the stock could be now accumulated with a stop below 125.
SRF LTD.
Reco: SELL
Last Close: 1649
Target : 1500
Weekly gap marked the termination of the upmove & a breakdown from the continuation pattern indicates weakness to persist. Short positions could be initiated with a stop at 1690.
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
