Stock picks from Motilal Oswal Securities; buy Divis Lab, KPIT

Here are a few trading ideas from Sacchitanand Uttekar, Equity Technical Analyst of Motilal Oswal Securities

Nifty Outlook

Nifty witnessed yet another narrow range formation post the ‘Doji’; indicating towards consolidation. The index has been trending within the ‘Channel pattern’ & encountering a time & price correction. The lower end of the pattern rests near 8640 & proximity towards the lower end would raise the probability of a mean reversion within the channel. Fresh longs are advocated once a reversal is confirmed on the daily scale within the pattern until then the immediate bias remains neutral.

DIVIS LAB

Reco: BUY

Last Close: 1344.50

Target : 1485

Positive sector outlook & mature continuation pattern on the daily scale raises expectation of a sustained upmove. Breakout above 1380 could accelerate the momentum hence declines within the pattern should be utilized to add longs with a stop below 1270.Long positions could be added with a for an immediate movement towards 1485.

KPIT LTD.

Reco: BUY

Last Close: 132

Target : 145

Inverse hammer confirmed the reversal from the lower end of the triangular pattern. A breach above 135 could accelerate the bullish momentum. Hence the stock could be now accumulated with a stop below 125.

SRF LTD.

Reco:  SELL

Last Close: 1649

Target : 1500

Weekly gap marked the termination of the upmove & a breakdown from the continuation pattern indicates weakness to persist. Short positions could be initiated with a stop at 1690.

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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities