Technical picks from Motilal Oswal: Buy TCS, Jubilant Foods; sell Axis Bank

Here are a few stock recommendations from Motilal Oswal Securities

TCS: BUY

Target : Rs 2, 750

Stop Loss: Rs 2,530

 
Yearlong consolidation now seems mature & a breakout above Rs 2750 could accelerate the momentum. The recent decline towards the mean of the range provides a favorable reward to risk opportunity to add longs. TCS could be accumulated with a stop below Rs 2530 for an initial target upto Rs 2860.

 

JUBILANT FOODS: BUY

Target : Rs 1850

Stop Loss: Rs 1,480

 
A ‘Bullish Hammer’ at the support confirmed the secular uptrend on the long term scale to stay intact. The recent decline provides a good reward to risk opportunity to add longs with a stop below Rs 1480.

 
AXIS BANK: SELL


Target : Rs 450

Stop Loss: Rs 522

 
The occurrence of 'Bearish Engulfing' post the pullback re-confirmed the swing resistance near 530. The pattern was followed by another Bearish formation (Dark Cloud Cover) re-confirming the current weakness in the stock. Recent setup provides a good reward to risk opportunity for fresh shorts with a stop loss above Rs 522 for a target upto Rs 450.


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