‘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.
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.
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
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.
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities