Trading ideas from Motilal Oswal: Buy HDFC, BPCL; Sell UPL

Here are few trading picks by Shubham Agarwal of Motilal Oswal Securities

Nifty Outlook


Nifty did see a closing below the support of 7620-7600 and the downside has no immediate levels to track unless some pattern develops. Temporary level exists at 7200. Its recommended to keep positions low & hedge the pending long positions. Pullbacks if any shall be restricted to 8100-8200 and to believe that one should take temporary positions only above 7730-7750

HDFC: BUY

Last Close: 1171

Target : 1350

HDFC has been in a secular uptrend & the 'Spike' on the weekly scale has occurred near the long term support re-confirming the strength in the support. The setup provides a good reward to risk opportunity for fresh longs & the stock could be accumulated with a stop below 1076 for a target upto 1350 (Prior swing high).
 
 

UPL: SELL

Last Close: Rs. 520

Target : Rs.460
 

The corrective wave post the impulse saw a ‘Bearish Engulfing’ occurring at the retracement resistance indicating stiff resistance. The placement of the daily RSI below 50 exhibits weakness to continue & hence UPL could be sold with a 537.30 for a Target upto 460.

 

BPCL: BUY

Last Close: Rs. 828

Target : Rs.1110

 
Shadow on the weekly scale re-confirms the long term support & continuation of the secular uptrend. The setup provides a good reward to risk opportunity for fresh longs with a stop at 793 for a medium term target upto 1110.


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Shubham Agarwal is the Head - Quantitative Research at Motilal Oswal Securities