Nifty saw a strong rebound from the immediate support of 7500 as it resumed its up move. It breached above the oscillating range of 7750-7500 with a 'Run Away Gap' reinstating the bullish momentum. A sustained price action during the week could further extend the momentum & push it beyond 8000. Only a breach below 7700 (Run Away Gap) would stall the momentum & push nifty within a broad trading range of 7500-8000. Short term traders could initiate longs on dips to 7800 with trading stop placed at 7700 and immediate target of 8000.
Last Close: 2410
Target : 3100
Bajaj Auto saw a rebound from its long term support. Positive sector outlook & fresh breakout from the consolidation 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.
JK Lakshmi Cement
Last Close: 366
Target : 422
Positive sector outlook & fresh breakout from a continuation pattern augurs well for the momentum to continue. JK Laxmi Cement could be bought with a stop at Rs 340 for a pattern target upto Rs 422.
Last Close: 160
Target : 150
Breakdown from the continuation pattern indicates weakness to persist. RECL is expected to continue its down trend & hence the stock could be short sold with a trading stop at Rs 163.50 for a target up to Rs 150.
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities