 "Trading strategy")
Nifty Outlook
Nifty breached below its immediate support placed at 8000 below which 7700-7800 could be an immediate movement. Pullback if any will make the reward to risk lucrative for selling with a stop above 8350.
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Target : Rs 3,700
Stop Loss: Rs 3,000
The recent reversion from the support confirmed the base near Rs 2900. Secular uptrend & continuation pattern formation augurs well for the uptrend to continue. A breach above Rs 3300 would accelerate the momentum & push the stocks towards the pattern target upto Rs 3700. Britannia could be accumulated with a stop below Rs 3030.
AXIS BANK: SELL
Target : Rs 445
Stop Loss: Rs 476
Post the gap down move the occurrence of 'Falling Three' on the daily scale indicates weakness to continue. We expect the stock to continue its downtrend & retest the swing lows near Rs 445. The reward to risk seems favorable for fresh shorts with a stop at Rs 476.
ANDHRA BANK: SELL
Target : Rs 58
Stop Loss: Rs 68
Fresh breakdown from the continuation pattern augurs well for the bearish trend to continue. Weakening bank index compliments the bearish setup Andhra bank could be short sold for a pattern target upto Rs 58 with a stop at Rs 68.
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.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
