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