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Here are few trading picks by Shubham Agarwal of Motilal Oswal Securities in trade today:
Nifty outlook
On the weekly scale nifty has been within a 'Descending Triangle' but a whipsaw at the lower end thrilled the traders and led to unwinding of leverage positions hence, leading to a general crowding out from the market. A candlestick pattern of 'Hammer' is also evident at the support line which is a positive indication. The probability of the pattern breaking out upward is about 80% given the historical evidences. Breakout area of the pattern is around 8500 (first target) and the stop remains slightly lower at 7620. So, a pullback up to 7800 could be taken as an opportunity to add positions.
HDFC: BUY
Last Close: 1157
Target : 1360
The occurrence of the ‘Bullish hammer’ on the weekly scale augurs well for the stock. 1140 support could hold well. Decline if any could present a good reward to risk opportunity to add as portfolio longs with a stop below 1110 & an initial target up to 1360.
BAJAJ CORP: BUY
Last Close: 492
Target : 640
Bajaj Corp saw a fresh breakout from consolidation which indicates the secular up-trend to remain intact. The stock could be accumulated with a stop at 465 for a medium term target upto 640.
YES BANK: SELL
Last Close: Rs. 670
Target : Rs.610
Yes Bank has been one of the weakest amongst the private banking names .Continuation pattern on the daily scale indicates the downward momentum to continue. Stock could be sold with a stop at 696 for a target upto 610.
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 and its associates have a financial interest in the securities mentioned above however they do not have actual/ beneficial ownership of 1% or more securities of the subjecct company at the end of Jan 2015. The spokesperson or his relatives, do not have a financial interest.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.
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 the Head - Quantitative Research at Motilal Oswal Securities
