 "Top trading calls from Motilal Oswal: M&M, Zee Entertainment")
Nifty Outlook
Nifty after forming a ‘Pennant’ saw another breakdown as expected. This re-confirms the overall direction and also raises a new resistance zone of Rs 8000-8025. Pullbacks if any can be used as a selling opportunity whenever the reward to risk is in favor. Even though there could be minor levels to track in between, a stronger support is only placed around Rs 7400-7450.
TATA ELXSI: BUY
Last Close: Rs 1,979
Target : Rs 2,240
Breakout from the consolidation indicates the secular uptrend to remain intact. Tataelxsi could be accumulated with a stop Loss at Rs 1,870 for an initial target up to Rs 2,240.
M&M: SELL
Last Close: Rs 1,324
Target : Rs 1,250
M&M again saw a reversal in the form of a ‘Bearish Engulfing’ on its intermediate scale. The setup provides a short term opportunity to add shorts with a stop Loss above Rs 1,347 & a target up to Rs 1,250.
ZEE ENTERTAINMENT: SELL
Last Close: Rs 400
Target : Rs 360
Negative sector outlook & the occurrence of consecutive ‘Bearish Engulfing’ patterns re-iterate the fact that the stock has been losing strength. The setup provides a good reward to risk opportunity to create fresh shorts with a stop Loss at Rs 410 for a target up to Rs 360.
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
