Stock picks from Motilal Oswal Securities: Buy Arvind & sell Bata India

Here are a few trading ideas by Sacchitanand Uttekar of Motilal Oswal Securities:

 

Nifty Outlook

 

Post 13th consecutive sessions of up move the index seems to have faced resistance near the retracement zone. The occurrence of a long bear candle coupled with the RSI's proximity towards the overbought zone warrants caution. The index could witness termination near this resistance zone of 8,400-8,450 & a corrective wave could follow in the coming week. Hence we recommend reducing leveraged longs & deploying adequate hedge for a while.

 

ARVIND

Reco: BUY

Last Close: 374.45

Target : 390

 

Arvind saw a breakout from a triangular consolidation with volumes. The follow up momentum could extend the up move to extend towards 390. Hence trading longs should be maintained with a stop below 365.

EXIDE INDUSTRIES

Reco: SELL

Last Close: 185

Target : 172

 

Bearish sector outlook for the weak & a 'Double Top' formation on the daily scale augurs well for fresh shorts. Exide could be short sold with a stop above 188 for a target upto 172.

 

BATA INDIA LTD.

Reco: SELL

Last Close: 476

Target : 460

 

Occurrence of a 'Gravestone Doji' post a sharp up move highlights exhaustion. The long shadow indicates that the buying pressure was overpowered by the sellers & a quick throwback could be expected. Trading short could be initiated in Bata India Ltd. with a stop above 485 & a target upto 460.

 

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.