Three buy ideas from Sacchitanand Uttekar of MOSL for today's trade
Here are a few trading ideas by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities:
Occurrence of Hammer on the weekly scale provides some sign of relief. Any Interim pullback towards 8,300-8,440 should be utilized to reduce leverage longs. On the daily scale, the ‘Bullish Harami’ formation reassured the immediate support near 7,900. The rebound of the RSI from its lower extreme compliments the expectation of a temporary pause. A respite could be a short term phenomena and hence shall not be considered as a buying opportunity for the long-term as the broader trend remains weak.
Last Close: Rs 1,509
Target: Rs 1,570
Rebound from the lower end of the ‘Broadening Pattern’ formation. The 200 DEMA is placed near Rs 1,570 coinciding with the upper end of the Broadening formation. We expect the up-move to continue in the coming weeks and hence longs could be maintained with a stop now below Rs 1,480.
Last Close: Rs 301
Target: Rs 320
Occurrence of ‘Bullish Harami’ coupled with the positive divergence on the daily RSI augurs well for a respite. The set-up provides a good reward to risk opportunity for trading longs with a stop below Rs 290 for a target upto Rs 320.
Last Close: Rs 570
Target: Rs 620
Cipla surged post breaking out from the megaphone formation. Pullback towards the pattern support saw multiple reversal formations. The setup provides another good reward to risk opportunity for traders to add longs with a stop below Rs 538 and target upto Rs 620.
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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities