‘Bullish Hammer’ formation on the daily scale of Nifty future along with the positive divergence on the RSI augur well for a termination of the existing down move. The implication of the bullish pattern will conclude once nifty sustains above 7440 from hereon.
Last Close: Rs 1139
Target : Rs 1220
'Bullish Hammer' on the daily scale reconfirms the medium term support near Rs 1100. M&M could be witness a sharp rebound as indicated by the pattern. Hence we recommend buying the stock with a stop below Rs 1120 for an immediate target upto Rs 1220.
Last Close: 2677
Target : 3100
Proximity towards the lower end of the 'Channel' raises expectation of an intermediate bottom. The risk to reward is extremely lucrative to create fresh longs with an expectation of a rebound within the pattern. United Spirits could be accumulated with a stop below Rs 2600 for an initial target upto Rs 3100 followed by Rs 3450.
Last Close: Rs 2262
Target : Rs 2160
Continuation pattern on the daily scale indicates weakness to continue. TCS could be short sold with a stop loss at Rs 2300 for a pattern target upto Rs 2160.
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities