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Nifty Outlook

Nifty has been oscillating within the strangled range of 7,550-7,400. The sharp rebound from 7,400 re-confirms the strength in the support & raises expectation of a breakout above 7,550 which would eject the it towards 7,700. Only a breach below 7,400 would distort this ongoing bullish sequence & hence serves as a trailing stop for longs.

Reco: BUY
Last Close: Rs 186.35
Target : Rs205

Positive sector outlook & mature rounding formation on the daily scale. SBIN now seems ready for momentum & a breach above 189 would propel it beyond 205. SBIN could be traded with a stop below 180 for an initial target upto 205.

Reco: BUY
Last Close: Rs 3029
Target : Rs 3160

Ultratech saw a fresh breakout from the ‘Rounding Pattern’. The occurrence of a ‘Rising Three’ on the daily scale augurs well for the uptrend to remain intact. A breach above 3040 could accelerate the momentum. Stock could be traded with a stop below 2980 for an initial target upto 3160.

Reco: SELL
Last Close: Rs 386.8
Target : Rs 370

Double top formation on the daily scale is getting affirmed. We expect Zee to continue its declining trend & revisit its trading swing low near 370. Short positions could be initiated in ZEE Ltd. With a stop at 395.

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.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. 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