Here are a few trading ideas by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities:
On the daily scale occurrence of contradicting patterns viz 'Island Gap' near 8,450 and 'Bullish Harami' at 7,900 indicate the ongoing movement to remain confined within a tight range. RSI also compliments the ongoing pullback move which could get arrested near the upper bound of the expected range. The pullback sequence of higher tops and higher bottoms remains firm so long as 8,140 (Spot) holds, hence breach below the same could pause the up move. As the respite could be a short term phenomena, it shall not be considered as a buying opportunity for the long term as the broader trend remains weak.
Last Close: Rs 475
Target: Rs 520
Positive sector outlook and 'Double Bottom' formation near the long term support. With the expectation of a firm support, the stock qualifies as a buy on declines candidate compared to its peers. Longs could be considered with a trading stop below Rs 448 and sequential targets of Rs 520-550.
Last Close: 301
Positive sector outlook and breakout from the continuation pattern on the long-term scale augurs well for the secular upmove to continue. Trading longs could be added with a stop at Rs 171 and sequential targets of Rs 213-235.
Last Close: 570
Pullback seems terminated with the occurrence of the ‘Evening Star’ formation close to its 200 DEMA. A breach below Rs 280 could amplify the downward momentum and hence short positions could be considered below Rs 280 with a stop above Rs 291 and target Rs 260.
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