Nifty Outlook
Nifty remained oscillating within the strangled range of 7550-7400 throughout the week. Sharp rebound from the lower end during the latter half of the week re-confirms the strength in the support. The swift up move exhibits impulse wave characteristics which raises expectation of a breakout which would eject it towards 7800(Upper End of Weekly Channel).Only a breach below 7400 would distort this ongoing sequence & hence serves as a trailing stop for longs
SBIN: BUY
Last Close: Rs 196.70
Target : Rs 220
Stop Loss: Rs 182
Positive sector outlook and breakout from the 'Rounding' formation is now evident on the daily scale. We expect momentum to accelerate in the coming days & hence the stock could be participated with a stop below Rs 182. Pattern indicates a price target up to Rs 220.
HEROMOTO: BUY
Last Close: Rs 2801
Target : Rs 3320
Stop Loss: Rs 2670
Breakout from a triangular pattern indicates directional move in the offing. We expect the stock to resume its secular uptrend & revisit its life high level. It could be participated with a stop at Rs 2670 & a target up to Rs 3320.
ZEEL: SELL
Last Close: Rs 392
Target : Rs 370
Stop Loss: Rs 400
Post the 'Double Top' formation, ZEE Ltd. has been trending down. The recent pullback near 400 saw an 'Evening Star' pattern indicating weakness to persist. ZEE Ltd. could be short sold with a stop above Rs 400 for an initial move upto Rs 370.
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
