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 MOTO CORP
Reco: BUY
Last Close: Rs 3079
Target : Rs 3170
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 3000 for a target upto Rs 3170.
BPCL
Reco: BUY
Last Close: Rs 1023
Target : Rs 1140
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.
AUROPHARMA
Reco: SELL
Last Close: Rs 727
Target : Rs 680
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.
OPTION STRATEGY
Nifty Reverse Iron Condor Spread
Buy July 8400 CE 1 lot
Buy July 8100 PE 1lot
Sell July 7900 PE 1 lot
Sell July 8600 CE 1 lot
Target: Rs.6500 SL: RS. 3500
Rationale:
1.Nifty data shows option indicative band for July series at 8000-8500
2. India Vix, volatility Index, The sentiment indicator inch above 18%, indicating expected cautiousness ahead of global event
3 Considering rising volatility, Hedge strategy, Reverse Iron Condor is recommended
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The author is an Equity Technical Analyst at Motilal Oswal
DISCLAIMER: MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally, MOSt generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover.
