 "Nifty outlook and top stock picks by Motilal Oswal Securities")
Nifty Outlook:
The Nifty index opened positive but follow up buying was missing at higher levels and it got stuck in a range of 40-50 points for the entire trading session. It has formed a contradicting pattern on the daily scale which suggests initialization of sideways momentum. Now till it holds above 10680, it can extend its up move towards 10780 - 10800 zones while a hold below 10680 could drag it towards 10638 then 10600 zones.
Stocks:
NIIT TECH
Reco: BUY
Last Close: Rs 1059
Also Read
Stop Loss: Rs 1020
Target: Rs 1130
Retest of previous breakout creates buying opportunity and it is trading above 50 & 200 EMA in all the time frame which indicates strength.
HINDALCO
Reco: BUY
Last Close: Rs 238.70
Stop Loss: Rs 232
Target: Rs 253
It has been respecting rising trend line and surpassed its 50 DEMA. Spike in volumes and RSI has given positive cross over.
CONTAINER CORPORATION OF INDIA
Reco: BUY
Last Close: Rs 1399
Stop Loss: Rs 1373
Target: Rs 1451
It has given Inverse Head & Shoulder breakout on daily chart with surge in volumes and RSI has given positive cross over above 60 zones which indicates positive momentum.
STRATEGY
HINDPETRO - BULL CALL SPREAD +310-320
BUY HINDPETRO 1 LOT OF 310 CALL
SELL HINDPETRO 1 LOT OF 320 CALL
NET PREMIUM PAID: 3.55
MAX RISK: 3.55 (Rs. 5591/-)
MAX REWARD: 6.45 (Rs. 10159/-)
Rationale:
- The stock is turning from deep oversold territory
- It has reversed from its double bottom support of 290 zones
- Huge shorts are seen in the counter so hold at current level might attract short covering activity.
- Max Put OI is seen at 300 strike which suggest shift of support to higher level
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