Buy ITC, ONGC; sell Grasim Industries: Sacchitanand Uttekar of MOSL

Here are a few trading ideas from Sacchitanand Uttekar, Equity Technical Analyst of Motilal Oswal Securities:

Nifty Outlook
 
Proximity towards the lower end of the ‘Falling Channel’ raises the expectation of a reversal  in the offing. Only a close below 8530 could see a movement towards 8430 else the pattern support augurs well for a revival of the uptrend & hence serves a  trading stop for fresh longs. Once a reversal is established a rebound towards the upper end (8800)of the channel could be expected immediately.
 

ITC
Reco:  BUY
Last Close: 238
Target: 255
 
Occurrence of a 'Bullish Harami' near the lower range of the channel along with its RSI approaching its oversold zone. ITC is also quoting near its 200 days. The setup provides a good reward to risk opportunity for short term longs with a stop below 230 & an initial target upto 255.

 
ONGC
Reco: BUY
Last Close: 272.40
Target: 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 264 for an initial target upto 286.
 
GRASIM
Reco: SELL
Last Close: 998
Target: 945
 
‘Dark Cloud Cover’ on the daily scale indicates termination of the pullback. Trading shorts could be considered around 1010 with a stop at 1040 for an initial target upto 945.

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.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities