Nifty held on to the 'Run Away Gap' support area near Rs 7,700 & saw a strong rebound. The occurrence of multiple Doji's at the reversal zone augurs well for the termination of the existing correction. A close above Rs 7,800 now confirms the reversal pattern & further longs could be added with an expectation of a breach above Rs 8,000.
BAJAJ AUTO: BUY
Last Close: Rs 2,527
Target : 3,100
Bajaj Auto saw a rebound from its long term support. Fresh breakout from the continuation pattern indicates momentum to accelerate in the coming weeks. Bajaj Auto could be accumulated with a stop at Rs 2,410 for a potential pattern target upto Rs 3,100.
ASIAN PAINTS: BUY
Last Close: Rs 907
Target : Rs 980
Breakout from consolidation on the immediate scale with significant volumes. A breach above Rs 930 would accelerate momentum & hence the stock could be accumulated with a stop below Rs 875 for a pattern target upto Rs 980.
DABUR INDIA: BUY
Last Close: Rs 288
Target : Rs 330
Positive sector outlook & breakout from the 'Rounding' formation. The recent pullback provides a good reward to risk opportunity to add longs with a stop below Rs 271 for a pattern target upto Rs 330.
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities