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Nifty Outlook
‘Bullish Hammer’ formation on the daily scale of Nifty future along with the positive divergence on the RSI augur well for a termination of the existing down move. The implication of the bullish pattern will conclude once nifty sustains above 7440 from hereon.
M&M: BUY
Last Close: Rs 1139
Target : Rs 1220
'Bullish Hammer' on the daily scale reconfirms the medium term support near Rs 1100. M&M could be witness a sharp rebound as indicated by the pattern. Hence we recommend buying the stock with a stop below Rs 1120 for an immediate target upto Rs 1220.
UNITED SPIRITS: BUY
Last Close: 2677
Target : 3100
Proximity towards the lower end of the 'Channel' raises expectation of an intermediate bottom. The risk to reward is extremely lucrative to create fresh longs with an expectation of a rebound within the pattern. United Spirits could be accumulated with a stop below Rs 2600 for an initial target upto Rs 3100 followed by Rs 3450.
TCS: SELL
Last Close: Rs 2262
Target : Rs 2160
Continuation pattern on the daily scale indicates weakness to continue. TCS could be short sold with a stop loss at Rs 2300 for a pattern target upto Rs 2160.
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, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. 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
