Nifty outlook and top stock picks by Motilal Oswal Securities

Photo: Shutterstock.com
Nifty Outlook:
The Nifty index opened positive but follow up buying was missing at higher levels and it got stuck in a range of 40-50 points for the entire trading session. It has formed a contradicting pattern on the daily scale which suggests initialization of sideways momentum. Now till it holds above 10680, it can extend its up move towards 10780 - 10800 zones while a hold below 10680 could drag it towards 10638 then 10600 zones.

Stocks:

NIIT TECH

Reco: BUY

Last Close: Rs 1059

Stop Loss: Rs 1020

Target: Rs 1130

Retest of previous breakout creates buying opportunity and it is trading above 50 & 200 EMA in all the time frame which indicates strength.

HINDALCO

Reco: BUY

Last Close: Rs 238.70

Stop Loss: Rs 232

Target: Rs 253

It has been respecting rising trend line and surpassed its 50 DEMA. Spike in volumes and RSI has given positive cross over.

CONTAINER CORPORATION OF INDIA

Reco: BUY

Last Close: Rs 1399

Stop Loss: Rs 1373

Target: Rs 1451

It has given Inverse Head & Shoulder breakout on daily chart with surge in volumes and RSI has given positive cross over above 60 zones which indicates positive momentum.


STRATEGY

HINDPETRO - BULL CALL SPREAD +310-320

BUY HINDPETRO 1 LOT OF 310 CALL

SELL HINDPETRO 1 LOT OF 320 CALL

NET PREMIUM PAID: 3.55

MAX RISK: 3.55 (Rs. 5591/-)

MAX REWARD: 6.45 (Rs. 10159/-)

  

Rationale:
  • The stock is turning from deep oversold territory
  • It has reversed from its double bottom support of 290 zones
  • Huge shorts are seen in the counter so hold at current level might attract short covering activity. 
  • Max Put OI is seen at 300 strike which suggest shift of support to higher level

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel