Stock picks from Motilal Oswal Securities; buy Lupin, Mindtree

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

Nifty Outlook

Most of the trading activity was registered close to the lower end of the ‘Spike’ formation which occurred on day of the US Election outcome. The occurrence of a ‘Spinning Top’ formation on the daily scale coupled with a positive divergence on the intraday scale raises the expectation of a bounce back. Traders are advised to resort to adequate hedge to negotiate the ongoing volatility. We expect nifty to remain confined with the broad range of 8,450-8,000 for the coming week.

LUPIN

Reco:  BUY

Last Close: Rs 1,415

Target: Rs 1,540

Positive sector outlook & the development of a ‘Bullish Harami’ at the lower end of the Broadening formation. Fresh longs can be initiated with a stop below Rs 1,380 & a pattern target upto Rs 1,540.

MINDTREE

Reco: BUY

Last Close: Rs 441

Target: Rs 465

Post a severe decline the positive divergence on the daily RSI raises expectation of a bounce back. Mindtree could be accumulated upto Rs 428 with a stop below Rs 410 for a trading target upto 465.

 INDIA CEMENTS

Reco: SELL

Last Close: Rs 113

Target: Rs 100

Negative sector outlook & breach below its 200 DEMA indicates weakness to persist. Pullback upto 120 can be utilized to crate shorts with stop above Rs 124 & a trading target upto Rs 100.

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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities