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Stock picks from Shubham Agarwal of Motilal Oswal Research

 

Image via Shutterstock

Image via Shutterstock

 

Nifty Outlook

Nifty saw a strong rebound from the 'Run Away Gap' support area near 7700. A ‘Rising Three’ formation on the weekly scale augurs well for the existing bullish trend to remain intact. Further longs could be added with an expectation of a breach above 8000. While 7700 now could be considered as a trailing stop level for fresh longs.

HERO MOTOCORP

Reco: BUY

Last Close: Rs 2,951

Target : Rs 3,160
 

Positive sector outlook & rebound from the immediate support. Occurrence of a 'Bullish Hammer' re-confirmed the support zone. Stock could be accumulated with a stop below Rs 2,880 with an expectation of a move back towards Rs 3,160.

INFOSYS

Reco: BUY

Last Close: Rs 1,210

Target : Rs 1,260
 

Occurrence of a 'Bullish Harami' at the retracement support along with the positive crossover in RSI, indicates termination of the corrective move. The pullback provides a favorable reward to risk for fresh longs. Infosys can be bought with a stop below Rs 1,190 for a target upto Rs 1,260.

LIC HOUSING FINANCE

Reco: BUY

Last Close: Rs 462

Target : Rs 495
 

Breakout from the ‘Falling wedge’ supported with significant jump in volumes. LIC HSG could be traded with a stop below  Rs 462 for a pattern target upto Rs 495.

Option Strategy: ICICIBANK (Modified Bull Spread)

Buy 235 CE 1 lot  Sell 245 CE 1 lot Sell 215 PE 1 lot

Target: Rs 13,250 STOP LOSS: Rs 3,750
 

Rationale:

Positive sector outlook along with incremental participation augurs well for momentum to continue further

ICICI Bank is in long- long unwinding cycle

Unwinding in 230 CE could lead to further push towards higher levels

Put built-up at 220-230 act as immediate support

Considering positive outlook and to benefit for theta decay, Modified Bull Call spread is recommended