Trading ideas from Motilal Oswal: Buy HDFC; Sell Yes Bank, Just Dial

Here are few trading picks by Shubham Agarwal of Motilal Oswal Securities

NIfty Outlook
 
Historically the month of august with a Zscore at its extreme has seen termination of the corrective move. The current placement of the Zscore of Nifty indicates that the recent fall has taken it to the lower extreme from where the possibility of a reversal remains high. So, in the current scenario clubbing this with other studies, 7620 becomes a make or break for the medium term uptrend to stay intact. Only a breach below the same could negate the pattern for a deeper correction.

 

HDFC: BUY
Last Close: Rs 1142
Target : Rs 1350
 
HDFC has been in a secular uptrend & the 'Spike' on the weekly scale has occurred near the long term support re-confirming the strength in the support. The setup provides a good reward to risk opportunity for fresh longs & the stock could be accumulated with a stop below Rs 1076 for a target upto Rs 1350 (Prior swing high).
 
YES BANK: SELL
Last Close: Rs 647
Target : Rs 586
 
Yes Bank is amongst the weakest of the private sector names & the fresh breakdown from the continuation pattern indicates further weakness. Short positions could be initiated with a stop at Rs 677 for an initial target up to Rs 586.

 
JUST DIAL: SELL
Last Close: Rs 821
Target : Rs 590
 
Just Dial breached below its long term support and a continuation pattern post that clearly indicates that the scrip should accelerate on the downside. Stock could be sold with a stop at Rs 905 for a target upto Rs 590.


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 the Head - Quantitative Research at Motilal Oswal Securities