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Motilal Oswal recommends buy on Bajaj Auto, Petronet LNG; sell on Divis Labs

Nifty Outlook

‘Doji’ at the upper end of the weekly channel signifies a ‘No Man’s Land’ situation near 8000. Post the ‘Run Away Gap’ on the immediate scale nifty is yet to witness any signs of exhaustion as it consolidated throughout the week in a narrow range. Momentum indicator has not yet registered an overbought situation & hence odds of a breakout above 8000 remain high. A sustained breach above 8000 could reinstate momentum & push it towards 8300. Only a breach below ‘Run Away Gap’ would stall the ongoing bullish trend. Short term traders could continue their longs in Nifty with stop placed at 7740.



Reco: BUY

Last Close: Rs 2544

Target : Rs 3100

Bajaj Auto saw a rebound from its long term support. Positive sector outlook , fresh breakout from the consolidation and pull back to support point indicates momentum to accelerate in the coming weeks. Bajaj Auto could be accumulated with a stop at Rs 2410 for a potential pattern target upto Rs 3100.



Reco: Buy

Last Close: Rs 263

Target : Rs 300

Breakout from the immediate consolidation with significant volumes. The breakout is now followed by the ‘Rising Three’ formation indicating the uptrend to remain intact. Petronet LNG could be accumulated for a target upto Rs 300 with a stop at Rs 252



Reco: Sell

Last Close: Rs 1060

Target : Rs 980

Negative sector outlook & occurrence of a 'Dark Cloud Cover' candlestick formation at the retracement resistance zone indicates termination of the ongoing pullback. The setup provides a phenomenal reward to risk opportunity for fresh shorts with a stop above Rs 1110 for a short term target upto Rs 980.

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