Shubham Agarwal of Motilal Oswal recommends buy on SBI, Asian Paints, Emami

Here are a few trading ideas from Shubham Agarwal of Motilal Oswal Securities

Nifty Outlook

Nifty continues to trend up & has no sign of exhaustion yet. It continues to head higher towards 7900(200 DMA) which also coincides with the upper end of the weekly channel. A breach only below 7580 would mark the termination of the existing positive momentum & hence serves as a trail stop for short term longs.

 

SBIN: BUY

Target : Rs 220

Stop Loss: Rs 188

Positive sector outlook & breakout from the ‘Rounding Bottom’ indicates an up move till Rs 220. Pullback towards the pattern provides a phenomenal reward to risk opportunity even for short term traders. Fresh longs could be created with a stop below Rs 188.

 

Asian Paints: BUY

Target : Rs 910

Stop Loss: Rs 877

Asian paints has been oscillating within the trading range of Rs 850-910. The inverse hammer formation at the lower end of the range marked the beginning of a through back move towards Rs 910. Breakout from continuation pattern on the intraday scale indicates fresh momentum in the offing. The move can be participated with a stop below Rs 877.

 

Emami: BUY

Target : Rs 1040

Stop Loss: Rs 910

‘Morning Star on the daily scale reconfirmed the multiple support zone at Rs 900.  The stock has seen a healthy correction so far & the pattern points towards a ‘Double Bottom’ scenario. Its proximity towards the support zone provides a favorable risk to reward opportunity. Traders could also participate the move with a stop now at Rs 910 for an immediate bounce towards Rs 1040.

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.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities