Outlook:
Nifty index opened positive and witnessed strong up move as it rallied by more than 150 points. It made a strong Bullish Candle on the daily chart by negating its formation of lower highs of last three trading sessions. It has almost engulfed the price consolidation of last five trading sessions and closed strongly above 9,500 mark. Now it has to hold above 9,450 zone to witness an up move towards 9,550 and 9,600 zone, while on the downside supports are seen at 9,420 and 9,380.
Stocks:
HERO MOTOCORP
Reco: BUY
Last Close: Rs 3626
Stop Loss: Rs 3558
Target: Rs 3800
It has given a breakout from its flag pattern and suggest that the price of the stock is likely to see a major rally. Flags are continuation pattern and positive sector outlook also supports are view in the stock. Thus, we recommend to buy the stock with a stop below Rs 3558 for a potential target of Rs 3800.
KOTAK BANK
Reco: BUY
Last Close: Rs 956
Stop Loss: Rs 936
Target: Rs 1000
It has given a breakout from its consolidation band of last six trading sessions. Major trend of the stock is positive and recent consolidation provides a fresh opportunity to buy for the fresh leg of rally towards Rs 1000.
Disclaimer: Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.