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Nifty outlook
Nifty recovered from its lost ground during the week gone by. Going forward it could face temporary resistance near 8,200 near the gap that it left on the way down. The behavior of the broad market suggest signs of revival. So long as the Nifty is above 7,650, there is hope of a sustained up move to continue.
HDFC
Reco: BUY
Last Close: Rs 1,205
Target: Rs 1,360
The occurrence of the ‘Bullish hammer’ on the weekly scale augurs well for the stock. 1,140 support could hold well. Decline if any could present a good reward to risk opportunity to add as portfolio longs with a stop below 1,110 & an initial target up to Rs 1,360.
INDUSIND BANK
Reco: SELL
Last Close: Rs Rs 848
Target: Rs 780
Critical support breached by a downward 'Window' indicates further weakness. Expect the stock to decline towards Rs 780 (Lower end of the consolidation band) & hence could be short sold with a stop at Rs 880.
TECH MAHINDRA
Reco: SELL
Last Close: Rs 520
Target: Rs 450
TECH MAHINDRA continues to trend down and the downtrend is not expected to see a reversal until it re-tests the level of Rs 450. The continuation pattern on the daily scale seems mature indicating acceleration. The scrip can be sold with a stop at Rs 540 for the target at Rs 450.
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.
Shubham Agarwal is Head - Quantitative Research at Motilal Oswal Securities
