Buy Lupin, Hindalco; sell Exide: Sacchitanand Uttekar, MOSL

Here are a few trading ideas by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities

Here are a few trading ideas by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities

Nifty Outlook

Post the occurrence of a ‘Bearish Belt hold’ formation (reversal formation) Nifty witnessed a series of narrow ranged bodies confined within its range. Also, the momentum oscillators are stating an oversold situation but only a close above 8,110 would warrant a pullback. Hence, the bullish implications of the pattern would only unveil above 8,110 ; until then expect index to gyrate within the narrow range of 8,100-7,900, for a while.

LUPIN

Reco:  BUY

Last Close: Rs 1458

Target : Rs 1570

Rebound from the lower end of the ‘Broadening Pattern’ formation. The 200 DEMA is placed near Rs 1,570 coinciding with the upper end of the Broadening formation. We expect the upmove to continue in the coming weeks and hence longs could be added with a stop below Rs 1,410.

HINDALCO

Reco: BUY

Last Close: Rs 180

Target: Rs 200

Positive sector outlook and breakout from the flag formation augurs well for the up move to extend. Hindalco could be traded with a stop below Rs 172 for an initial target upto Rs 200.

EXIDE

Reco: SELL

Last Close: 171.05

Target :161

Exide is now placed close to its 200 days EMA but the ‘Inverse Pennant’ formation on the daily scale now seems mature for a breakdown and augurs well for the fresh weakness. Short positions could be initiated with a stop above Rs 176.30 for a target up to Rs 161.
 

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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities