Buy Oil India, BEL and sell Indiabulls, says Motilal Oswal Securities

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

Nifty Outlook

Nifty commenced the truncated week on a positive note but the upside is expected to remain capped around 8,400-8,450 range as indicated by the ‘Bearish Marubozu’ formation. The pattern is also supported with the reversion in the daily RSI. Hence, we expect the index to witness a further drag towards the weekly swing support placed at 8,230. The setup would be void in case the index surpasses the 'Bearish Marubozu' high of 8,470 during the week and hence serves as a stop for fresh shorts.

OIL INDIA

Reco: BUY

Last Close: Rs 336.6

Target: Rs 350

Positive sector outlook and the occurrence of ‘Bullish Engulfing’ formation on the daily scale near the retracement support. Trading longs could be initiated with a stop below Rs 331 for a target upto Rs 350.

BEL

Reco: BUY

Last Close: Rs 1514

Target: Rs 1610

Continuation pattern on the daily scale indicates the ongoing uptrend to remain intact. The recent reversal from the short-term averages augur well for momentum. Long positions could be considered with a stop below Rs 1,470 for an initial move upto Rs 1,610.

INDIABULLS HOUSING FINANCE

Reco: SELL

Last Close: Rs 757

Target: Rs 705

'Occurrence of ‘Bearish Engulfing’ augurs well for the termination of ongoing up move. RSI reversion from the overbought zone compliments the setup and a move towards the short term average could be witnessed soon. Short positions could be considered with a stop above Rs 770 and target up to Rs 705.

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.