 "Technical picks from Motilal Oswal: Buy BPCL, TVS Motor; Sell Siemens")
Nifty Outlook
As expected Nifty saw a reversal from 8350 & the dual distribution theory for the momentum indicator remains validated. With the oscillator still away from its lower end of the oscillation range, weakness could persist with possibilities of temporary pullbacks which will be an opportunity. Support on the downside is placed in the range of 7800-7700 and immediate resistance is far above 8250 now.
BPCL: BUY
Target : Rs 1055
Stop Loss: Rs 830
Multiple bullish patterns reassure the medium term support & the secular uptrend to stay intact. We expect the OMC basket to continue its relative outperformance. BPCL could be accumulated with a stop at Rs 830 with an expectation of the extension move up to Rs 1055.
TVS MOTOR: BUY
Target : Rs 410
Breakout from the yearlong consolidation is well supported with volumes. ‘Rounding Bottom’ formation on the medium term scale indicates a price target up to 410.
SIEMENS: SELL
Target : Rs 1140
Stop Loss: Rs 1,320
'Triple Top' formation at the retracement resistance reverse the trend. A breach below Rs 1320 accelerated the momentum & the stock is expected to remain under pressure & retest its medium term swing low near Rs 1140. The current setup provides a good reward to risk opportunity to create fresh shorts with a stop above Rs 1320.
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
As expected Nifty saw a reversal from 8350 & the dual distribution theory for the momentum indicator remains validated. With the oscillator still away from its lower end of the oscillation range, weakness could persist with possibilities of temporary pullbacks which will be an opportunity. Support on the downside is placed in the range of 7800-7700 and immediate resistance is far above 8250 now.
Also Read
Target : Rs 1055
Stop Loss: Rs 830
Multiple bullish patterns reassure the medium term support & the secular uptrend to stay intact. We expect the OMC basket to continue its relative outperformance. BPCL could be accumulated with a stop at Rs 830 with an expectation of the extension move up to Rs 1055.
TVS MOTOR: BUY
Target : Rs 410
Breakout from the yearlong consolidation is well supported with volumes. ‘Rounding Bottom’ formation on the medium term scale indicates a price target up to 410.
SIEMENS: SELL
Target : Rs 1140
Stop Loss: Rs 1,320
'Triple Top' formation at the retracement resistance reverse the trend. A breach below Rs 1320 accelerated the momentum & the stock is expected to remain under pressure & retest its medium term swing low near Rs 1140. The current setup provides a good reward to risk opportunity to create fresh shorts with a stop above Rs 1320.
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
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