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Last Updated : Aug 19, 2016 08:35 AM IST | Source: Moneycontrol.com

Buy Nifty on any dip; sell Castrol, target Rs 400.50: Rajat Bose

According to Rajat Bose, Research Analyst at rajatkbose.com, one can buy Nifty on any dip up to 8650 with a stop loss below 8620; targets 8710 – 8740, 8785 – 8805 and 8858.

 
 
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Rajat Bose, Research Analyst at rajatkbose.com

Market Outlook for August 19, 2016

Nifty (8673.25):

A directional move on the upside is highly probable in today’s session once you see the option statistics at the end of the last trading session: there has been both short covering and fresh long position build up. The 8600-strike current month put option has seen more than 1-million unit addition in open interest (OI) in yesterday’s session and the 8700-strike put added more than 350,000 units while right from 8400 through 9100-strike August Nifty call options show large scale reduction in cumulative OI figure to the tune of around 3.5 million units. This normally should have led to large swing in the index on the upside but it didn’t; however, it could just happen today.

Unless 8643 for the Nifty is taken out for a minimum, the bulls would be very much on the driver’s seat and push up the market—all intraday dips are likely to get bought. You might see long positions getting built up if the bears are unable to push the index below the above level in any sustained manner. Now, once the bulls take out the supply zone between 8710 and 8740—the index would be headed for 8800-plus level meeting its short term target level of 8858 eventually.

Trade recommendations:

Buy the Nifty on any dip up to 8650 with a stop loss below 8620; targets 8710 – 8740, 8785 – 8805 and 8858.

Stock recommendations:

Ambuja Cements
(272.10): Buy with stop loss below Rs 266.80; targets Rs 278 and Rs 284.50.

Jain Irrigation Systems (80.15): Buy with stop loss below Rs 77.80; targets Rs 83.80 and Rs 87.40.

Castrol India  (405.10): Sell with stop loss above Rs 407.80; target Rs 400.50.

Statutory disclosure: The analyst and his associate has none of the above. Their respective families, however, do not hold any shares either jointly or separately in any of the stocks mentioned above.

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First Published on Aug 19, 2016 08:35 am
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