 "Trading strategy")
Nifty Outlook
Despite the volatile week nifty maintained its sequence of higher lows which augurs well for the upmove towards the higher end of the weekly channel placed near 7900. The probability of a breakout from this strangled range of 7550-7400 in the coming week remains high. Only a breach below 7400 would distort this ongoing sequence & hence serves as a trailing stop for longs.
ICICI BANK: BUY
Last Close: Rs 221.65
Target : Rs 238
Stop Loss: Rs 212
The declining sequence was distorted with a 'Breakaway gap'. The consolidation post it seems mature & fresh momentum seems in the offing. Trading longs could be initiated now in ICICI Bank with a stop at Rs 212 & an initial target upto Rs 238.
MARICO: BUY
Last Close: Rs 250.85
Target : Rs 265
Stop Loss: Rs 242
Fresh breakout from a continuation pattern augurs well for the secular uptrend to remain intact. Marcio could be traded with a stop below Rs 242 & an initial target upto Rs 265.
ULTRATECH CEMENT: BUY
Last Close: Rs 3004
Target : Rs 3130
Stop Loss: Rs 2960
Ultratech saw a fresh breakout from the 'Rounding Pattern'. The occurrence of a ‘Rising Three’ on the daily scale augurs well for the uptrend to remain intact. A breach above Rs 3040 could accelerate the momentum. Stock could be traded with a stop below Rs 2960 for an initial target upto Rs 3130.
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 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
