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Nifty is expected to continue its run towards 8700. Follow up momentum if any could amplify only above 8700 which could extend the rally. Since the strength indicator is now placed in the overbought zone , trail stop strategy shall be adhered to trade the expected momentum. Trading longs shall be considered until 8470 holds.
HERO MOTOCORP: BUY
Target : Rs 3480
Stop Loss: Rs 3120
Positive sector outlook & 'Rising Three' pattern augur well for the uptrend to continue. A decisive breach above Rs 3300 would activate 'Rounding 'pattern target. Hence the stock could be accumulated on at every opportunity with a revised stop below Rs 3120 for an initial up move till Rs 3300 followed by an extended target up to Rs 3480.
Target : Rs 5200
Stop Loss: Rs 4680
Positive sector outlook & fresh breakout from the continuation pattern augurs well for the momentum to amplify. The ongoing bullish momentum could be traded with a stop below Rs 4680 for a pattern target upto Rs 5200.
BHARAT ELECTRONICS: BUY
Target : Rs 1390
Stop Loss: Rs 1245
Pennant formation within the broad oscillating range provides a trading opportunity. Momentum likely to be witnessed on a breach above Rs 1300 which can be participated with a stop below Rs 1245
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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities