Stock picks from Motilal Oswal Securities; buy Bajaj Auto, HDFC, Bata India

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

NIFTY OUTLOOK

Nifty ended the session near the 'Run Away Gap' area which is expected to provide some support. The occurrence of ‘Doji’ at the reversal zone augurs well for the termination of the existing correction. A close above 7,780 corresponding to the ‘Doji’s ’high would confirm the reversal pattern & fresh longs could be initiated then.

BAJAJ AUTO
Reco: BUY
Last Close: Rs 2,453
Target: Rs 2,760

Bajaj Auto saw a rebound from its long term support. Positive sector outlook , fresh breakout from the consolidation and pull back to support point indicates momentum to accelerate in the coming weeks. Bajaj Auto could be accumulated with a stop at Rs 2,410 for a potential pattern target upto Rs 2,760.

HDFC
Reco: BUY
Last Close: Rs 1,162
Target: Rs 1,260

Positive sector outlook. Breakout from consolidation indicates momentum to accelerate further & push the stock towards Rs 1,260. We expect relative outperformance from the stock & hence it could be accumulated with a stop below Rs 1,095.

BATA INDIA
Reco: BUY
Last Close: Rs 572
Target: Rs 620

Breakout from the Rounding formation. Pullback provides a good opportunity for fresh longs. Rising Three formation would reinstate momentum. Bata could be traded with a stop below Rs 550 for an initial target upto Rs 620.

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