 "Technical picks from Motilal Oswal: Buy BPCL, PVR; Sell NTPC")
Nifty has been oscillating within the immediate trading band of 8200-8100 & a breach above 8200 would unleash fresh momentum. Though some Indicators are gradually moving towards over-bought but there is no sign of a reversal yet on the absolute scale. Hence till that happens some more up move cannot be ruled out.
BPCL: BUY
Target : Rs 940
Stop Loss: Rs 870
Secular Uptrend on the long term scale. Spike re-confirmed the support near the lower end of the channel. Recent breakout from the consolidation could be participated with a stop below 870 for a Target upto 940.
PVR: BUY
Target : Rs 930
Stop Loss: Rs 810
Secular uptrend on the long term scale & the mature consolidation on the intermediate scale indicates the uptrend to stay intact. The setup provides a good reward to risk opportunity to add longs with a stop below Rs 810 for a target upto Rs 930.
NTPC: SELL
Target : Rs 112
Stop Loss: Rs 131
Breakdown from the Wedge pattern augurs well for the downtrend to remain intact. NTPC could be short sold with a stop above Rs 131 for a pattern target of Rs 112.
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
