Business Standard

Stock picks from Shubham Agarwal of Motilal Oswal Research

Bajaj Auto, Petronet LNG, Maruti Suzuki and more

Shubham Agarwal  |  Mumbai 

Image via Shutterstock
Image via Shutterstock

Nifty Outlook

Nifty is yet to witness any exhaustion of the ongoing bullish trend. The sequence of gaps would be complete once an Exhaustion gap is witnessed on the daily scale. The momentum oscillator has cooled off but is yet to see an overbought situation. Hence the odds remain in favor of continuation of the ongoing bullish trend with an immediate support placed below the ‘Run Away Gap’ at 7680 which now serves as a trail stop for longs


Reco: BUY

Last Close: Rs 2478

Target : Rs 2760

Bajaj Auto saw a rebound from its long term support. Positive sector outlook , fresh breakout from the consolidation and pull back to support point indicates momentum to accelerate in the coming weeks. Bajaj Auto could be accumulated with a stop at Rs 2400 for a potential pattern target upto Rs 2760.


Reco: Buy

Last Close: Rs 267

Target : Rs 300

Breakout from the immediate consolidation with significant volumes. The breakout is now followed by the continuation pattern indicating the uptrend to remain intact. Petronet LNG could be accumulated for a target upto 300 with a stop at 254


Reco: Sell

Last Close: Rs 1056

Target : Rs 980

Negative sector outlook & occurrence of a 'Dark Cloud Cover' candlestick formation at the retracement resistance zone indicates termination of the ongoing pullback. The setup provides a phenomenal reward to risk opportunity for fresh shorts with a stop above 1097 for a short term target upto 980.

Option Strategy: Maruti (Call Butterfly Spread)

Buy 1 Lot 3900 CE; Sell 2 Lots 4100 CE; Buy 1 Lot 4300 CE

Target Profit : 12000 Stop Loss : 3900

Positive sector outlook along with significant incremental change in open interest E-O-E augur well for up move;

Option indicative band shows immediate resistance at 4000 and support at 3500; Considering stable volatility and positive outlook, OTM Call Butterfly spread is recommended

Disclaimer: The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues

First Published: Tue, May 03 2016. 03:10 IST