Top stock picks from MOSL: Buy HeroMoto Corp, HUL

Here are a few trading ideas by Chandan Taparia, Derivatives and Technical Analyst & PFA at MOSL:

 

Nifty Outlook

 

Nifty index failed to cross 9,000 mark and after an early consolidation it witnessed a sharp decline towards 8,880. It formed a Bearish Engulfing pattern on daily chart and also tested its rising support trend line. On the downside it has multiple supports at 8,850 and 8,820 while 8,982-9,000 zone is likely to act as a key hurdle to restrict its upside momentum. Index is stuck in the trading range and momentum is missing both the side to get a decisive market move.

 

Stocks

 

HEROMOTO CORP

Reco: BUY

Last Close: 3229

Stop Loss: 3140

Target: 3410

 

It has been holding the gains from last two weeks and respecting to its support trend line. Recently it made bottom near to 3050 and now supports are shifting higher which is giving the bullish bias to the stock.

 

HINDUSTAN UNILEVER

Reco: BUY

Last Close: 877

Stop Loss: 858

Target: 915

 

It has given a mature consolidation breakout and holding the gains from last couple of sessions. It has given the highest daily close in last five months and momentum could extend to 915.

 

SHRIRAM TRANSPORT FINANCE

Reco: SELL

Last Close: 899

Stop Loss: 924

Target: 850

 

The stock has given a breakdown from its triangular pattern on daily chart and finding hurdle near to its 50 DMA. It has been making lower top – lower bottom formation and negative sector outlook may keep the pressure in the counter.

 

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.

 

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.