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Motilal Oswal recommends buy on BEL, ONGC, ITC

Here are a few trading ideas from Sacchitanand Uttekar of Motilal Oswal

Sacchitanand Uttekar  |  Mumbai 

Motilal Oswal recommends buy on BEL, ONGC, ITC

Nifty Outlook Proximity towards the lower end of the 'Falling Channel' coupled with the occurrence of a 'Bullish Harami' raises the expectation of a reversal. Only a sustained move beyond the range of 8750-8500 could see sharp momentum; until then expect the index to oscillate within the channel pattern. Further longs could be added on a decisive close above 8600 which could confirm the mean reversion within the channel. BEL Reco: BUY Last Close: Rs 1265 Target : Rs 1400 has been oscillating within a broad range of Rs 1400-1100. The recent pullback post the breakout on the weekly scale provides a good trading opportunity to add longs with a stop below Rs 1220 and a target up to Rs 1400 could be expected. ONGC Reco: BUY Last Close: Rs 272.40 Target : Rs 286 Positive sector outlook & continuation pattern on the daily scale augurs well for the stock to continue its outperformance. Trading longs could be added with a stop at Rs 264 for an initial target upto Rs 286. Reco: BUY Last Close: Rs 240.6 Target : Rs 255 Occurrence of a 'Bullish Harami' near the lower range of the channel along with its RSI approaching its oversold zone. is also quoting near its 200 days .

The setup provides a good reward to risk opportunity for short term longs with a stop below Rs 230 and an initial target upto Rs 255.

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is an Equity Technical Analyst at Securities

First Published: Tue, October 18 2016. 08:04 IST