Stock picks from Motilal Oswal Securities; Buy Dabur India, Hero MotoCorp

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

Nifty Outlook

A breach only below 7,680 would distort the ongoing bullish trend & hence serves as a trail stop for longs. With the expiry week ahead we expect the gyration to continue within the range of 7,700-7,950 & only a breach outside the said range would unfold directional momentum. The proximity towards the lower end of the bound provides a good reward to risk opportunity for fresh longs.
 

DABUR INDIA
Reco: BUY
Last Close: Rs 285
Target: Rs 300

Breakout from the Rounding formation. Pullback provides a good opportunity for fresh longs. Longs could be added with a trading stop at Rs 275 for an initial throwback towards Rs 300.

 
HERO MOTOCORP
Reco: BUY
Last Close: Rs 2,884
Target: Rs 3,160

Positive sector outlook & mature consolidation on daily scale. Stock could be accumulated with a stop below Rs 2,830 with an expectation of a move back towards Rs 3,160.
 
DIVIS LAB
Reco: SELL
Last Close: Rs 1,033
Target: 960

Negative sector outlook. The recent rebound from the 'Dark Cloud Cover' pattern re-confirmed weakness. Continuation pattern on the intraday scale compliments the reversal pattern & indicates weakness to persist. Short positions could be continued with a stop at Rs 1,068 for a short term target upto Rs 960.

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.

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