Buy BPCL, BHEL, BEL, says Shubham Agarwal of MOSL

Here are a few stock tips from Shubham Agarwal of Motilal Oswal

Nifty Outlook

Nifty saw a positive close after a sustained decline for six consecutive sessions. Absence of reversal on absolute price scale negates the sign of early support before Rs 7,450-7,400 ( Weekly Channel lower end). A breach below 7600 would reinstate the downward momentum.

BPCL: BUY

Last Close: Rs 904

Target : Rs 980

Occurrence of a ‘Piercing Line’ pattern re-confirms the near term support to remain intact. The recent decline & the reversal pattern provides a favorable reward to risk opportunity for fresh longs. BPCL could be participated with a stop Loss of  Rs 872 for a target upto Rs 980.

BHEL: SELL

Last Close: Rs 167.55

Target : Rs 155
 

Breakdown from critical support followed by the continuation pattern augurs well for further weakness. BHEL could be short sold with a stop Loss at Rs 172 for a pattern target upto Rs 155.

BEL: SELL

Last Close: Rs 1192

Target : Rs 1100
 

BEL saw a breakdown from a ‘Channel Pattern’. A continuation pattern post the breakdown augurs well for momentum to continue. We expect the stock to decline towards Rs 1,100 ( Pattern target) & could be participated with a stop Loss at Rs 1,238.

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, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. 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 a head of Quantitative Research, Motilal Oswal Securities