Stock picks by MOSL: Buy BEL, Oil India

Here are a few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

 

Nifty Outlook

 

Nifty commenced the truncated week on a positive 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 & hence serves as a stop for fresh shorts.

 

OIL INDIA

Reco: BUY

Last Close: 336.6

Target: 350

 

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

 

BHARAT ELECTRONICS

Reco: BUY

Last Close: 1,514

Target: 1,610

 

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 1470 for an initial move upto 1610.

 

INDIABULLS HOUSING FINANCE

Reco: SELL

Last Close: 757

Target: 705

 

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

 

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.