3 hot stock picks from Motilal Oswal Securities

Stop Loss : 1295

Target : 1350

It formed a bullish harami pattern with the support at previous lows of around 1300. This makes it a potential candidate for a reversal and a bounce after the recent decline. Most of the auto stocks were witnessing buying interest and it can lend positive sentiment to the stock. Thus recommending a buy on a small decline near to 1315, with a stop below 1295 for a potential upside target of 1350.

BAJAJ FINANCE

Reco: SELL

Last Close: 1234

Stop Loss : 1254

Target : 1195

It has broken a major support trend line and has been making lower highs – lower lows from last four trading sessions.

Option Strategy

AXIS BANK : RATIO BULL CALL SPREAD

Buy 1 lot AXIS BANK 500 CE 25 May 2017 @ 5.10

Sell 2 lot AXIS BANK 510 CE 25 May 2017 @ 2.05

Target / Reward: 10800

SL/ Risk: 1200

Rationale:

Axis Bank has been holding near to 500 and forming the higher weekly lows

Maximum Put OI at 500 strike suggests hold of the support while intact Call writing at 520 would restrict its upside.

Indicating positive to range bound move this Ratio Bull Call Spread is recommended