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Here are a few trading ideas by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities:
Nifty Outlook
Nifty saw a breakdown from the ‘Bearish Pennant’ formation on the weekly scale reaffirming the weakness to persist. The daily relative strength indicator is yet to witness an oversold situation which indicates further room for the bearish momentum to extend. A sustained breach below 7,900 could amplify the bearish momentum and push it lower towards its next support zone near 7,700. Traders could continue to retain their shorts until 8,156 is not violated.
YES BANK
Reco: SELL
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Last Close: Rs 1101.50
Target: Rs 1050
Yes Bank has been trending down within the wedge formation. The recent reversion from the upper end of the wedge reconfirms the weakness. Even on the daily scale, the stock has slipped below its 200-DEMA. We expect the stock to drift lower towards the pattern support placed near Rs 1,050. Traders could retain their short positions with a stop above Rs 1165.
BIOCON
Reco: SELL
Last Close: Rs 891.10
Target: Rs 850
‘Bearish Engulfing’ on the weekly scale indicates the upside to remain capped & weakness to persist in the coming weeks. Pullback if any towards 900 should be utilized to create shorts with a stop at 920 & a trading target upto 850.
BHARTI AIRTEL
Reco: BUY
Last Close: Rs 296.65
Target: Rs 320
Occurrence of a ‘Bullish Hammer’ near the lower end of the ‘Broadening formation’ raises expectation of a rebound. Trading longs could be considered with a stop below Rs 280 for an intermediate target upto Rs 320.
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.
Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities.
