Nifty outlook and two stock picks by Sacchitanand Uttekar of MOSL

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

Outlook:

On the daily scale, Nifty has formed narrow ranged bodies throughout the week. Though the daily RSI has been reporting an overbought state, the occurrence of consecutive long wicks reiterates the strength in the 8,720 support. Therefore, the level remains critical for the sequence of higher highs & higher lows on the intraday scale to remain firm until 8,720 is held on a closing basis. Only a sustained breach below the 8,720 would indicate loss in momentum and push the index lower towards its intermediate support around 8,600.

Stocks:

LIC HOUSING FINANCE

Reco: BUY

Last Close: Rs 558

Target: Rs 580

The continuation pattern on the daily scale now seems mature and a breach above Rs 561 could propel the stock towards Rs 575. Trading longs could be initiated with a stop below Rs 549.

JAIN IRRIGATION

Reco: BUY

Last Close: Rs 96.80

Target: Rs 103

Breakout from the Inverse Head & Shoulder formation on the daily scale & the pull back towards its neckline provides a good opportunity to add longs. Trading longs could be considered with a stop below Rs 93.50 for a pattern target up to Rs 103.

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.