Buy HPCL and L&T, says Shubham Agarwal of MOSL

Nifty Outlook

Nifty defended the expected support at 7700. Reversion of momentum indicator form its oversold zone augurs well for the ongoing pullback. However absences of a firm reversal pattern on the immediate scale indicates the pullback to be temporary in nature.

Reco: BUY
Last Close: Rs 798
Target : Rs 990

'Bullish Hammer' confirms the long term support & the secular uptrend to stay intact. We expect the OMC basket to continue its relative outperformance. HPCL could be accumulated with a stop at Rs 720 for an initial target upto Rs 990.

Reco: BUY
Last Close: Rs 1,365
Target : Rs 1,475

Post a sharp decline the stock saw some stability around the 1340 level. 'Piercing Line' pattern along with the positive divergence on the daily RSI augur well for the support to be held. We expect a stable recovery which could be participated with a stop at Rs 1,304 for an initial target up to Rs 1,475.

Reco: SELL
Last Close: Rs 716
Target : Rs 640

Sun Pharma has witnessed a systematic declining trend. With the medium term support breached with a gap the stock is expected to witness further decline. The fresh breakdown from the continuation pattern indicates likely acceleration & a price target of Rs 640 which could be participated with a stop at Rs 770.

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

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

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