Stock picks from Motilal Oswal: Buy Jubilant Foods, Bosch; Sell Axis Bank

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Nifty Outlook

 

Nifty saw contradicting pattern developments on the daily chart. On the bullish side we first saw a 'Spike' and post a whipsaw a 'Piercing Line' pattern was formed whereas before the swing high of 8100 could be tested, a 'Gravestone Doji' and a 'Bearish Engulfing' pattern were formed. In such developments, Index generally witnesses a consolidation which is fairly evident. The breakdown area was 8300 which remains an important hurdle in the case of a breakthrough with support at 7500.

 

JUBILANT FOODS: BUY

Target : Rs 1,850

Stop Loss: Rs 1,480

 

Positive sector outlook & the occurrence of a ‘Bullish Hammer’ at the medium term support reconfirmed reversion. JUBLFOODS could be could be participated with a stop at Rs 1,480 for medium term target upto Rs 1,850.

 

BOSCH LTD: BUY

Target : Rs 25,500

Stop Loss: Rs 18,170

 

Bosch Ltd is quoting at the lower end of the oscillating range. The current setup provides a good reward to risk opportunity for Bosch to be added as a portfolio buy with a stop at Rs 18,170.

 

AXIS BANK: SELL

Target : Rs 450

Stop Loss: Rs 522

 

The occurrence of 'Bearish Engulfing' post the pullback re-confirmed the swing resistance near 530. The pattern indicates the downtrend to resume again & the stock to retest its swing low at 450. Recent setup provides a good reward to risk opportunity for fresh shorts with a stop loss above 522 for a target upto Rs 450.

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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