Stock picks from Motilal Oswal Securities; Buy HDFC, M&M Financials, PI Inds

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

Nifty Outlook

Nifty ejected from the consolidation band of 7,700-7,950 with significant volumes which resulted into a sharp impulse move. The momentum indicator is yet to register an oversold situation & hence we expect momentum to extend further upto 8,200. Traders could continue their longs with a revised stop now below 7,900.

HDFC
Reco: BUY
Last Close: Rs 1,228
Target: Rs 1,320

Breakout from the Flag formation augurs well for the existing uptrend to remain firm. Pullback if any should be utilized to add longs with a stop at Rs 1,180. The continuation pattern indicates a move towards Rs 1,320.

M&M FINANCIALS
Reco: BUY
Last Close: Rs 319
Target: Rs 360

Positive sector outlook & fresh breakout from the continuation pattern on the daily scale augurs well for momentum to continue. We expect this bullish momentum to push the stock towards Rs 360 zone. Longs could be added with a stop below Rs 303.

PI INDS
Reco: BUY
Last Close: Rs 672
Target: Rs 780

Yearlong consolidation now seems mature. A ‘Rising Three’ formation on the weekly scale augurs well for the existing momentum to continue. The pattern is well supported with incremental volumes & augurs well for the breakout. We expect the momentum to accelerate once above Rs 700 which could push the stocks towards Rs 780. Fresh longs could be added with a trading stop below Rs 620.

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