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Buy Hero MotoCorp, BPCL; sell Aurobindo Pharma: Motilal Oswal

Trading strategy

  Nifty Outlook

8330 remains a significant level to track as 'Spinning Top' formation near the resistance re-confirms the significance of the level. A sustained breach above the same would eject the nifty out of the ongoing consolidating range of 8300-8160 & push it towards 8450.While a breach below 8160 would activate the bearish momentum.

 

HERO MOTOCORP: BUY

Target : Rs 3170

Stop Loss: Rs 3000

Positive sector outlook & rebound from the retracement support augurs well for a stable up move. Hero Moto Corp. has been oscillating within the broad range of Rs 3150-3000. Proximity towards the lower bound of the range provides a favorable reward to risk for short term longs. Accumulate with a stop below Rs 3000 for a target upto Rs 3170.

 

BPCL: BUY

Target : Rs 1140

Stop Loss: Rs 1000

Mature continuation pattern on the immediate scale augurs well for outperformance. A breach above Rs 1030 would activate the pattern & push the stock towards its pattern target placed at Rs 1140 which could be traded with a stop at Rs 1000.

 

AUROBINDO PHARMA: SELL

Target : Rs 680

Stop Loss: Rs 751

Falling Three' formation on the monthly scale exhibits weakness to persist. Breakdown from the continuation pattern re-confirms the bearish trend. Pullback if any could be utilized to create fresh shorts with a stop at Rs 751 for an initial target upto Rs 680.

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