RIL stock likely to gather momentum, may touch Rs 1,120 in short term: Shubham Agarwal, Motilal Oswal Securities

In a chat with ET Now, Shubham Agarwal, VP – Head Technical Research, Motilal Oswal Securities, shares his technical bets for today.

ET Now: What are your top technical recommendations for today?

Shubham Agarwal: First recommendation from our side is a ‘buy’ on Reliance Industries. Investors have been waiting for past seven years to see buy recommendations on this stock. .

Even I do not remember initiating a call on Reliance Industries for the past five years. But now, the development is such that makes us believe that there are tradable patterns and positions can be created on the counter.

Therefore, the consolidation seems to have matured. A breakout happened on Wednesday and we saw a follow-up buying coming in Thursday’s session.

We believe that this buying in the near term will gather movement. That is the reason, we are recommending the stock for the target of Rs 1,120. One can look to buy Reliance, placing a stop loss at Rs 898.

The second recommendation is a ‘buy’ on Engineers India, If you look at it from the technical front, the stocks was in the downtrend between 2010 and 2014.

It was in a downward sloping channel that was formed on technical charts. Post the downtrend, we saw strong impulse. The recent correction that we have seen is very temporary in nature. There could be a reversal on the long-term charts.

This is the reason that we are recommending a ‘buy’ on the stock for the target of Rs 260 and a stop loss for the same can be kept at Rs 205. However, with a medium term perspective, we believe that the stock has potential to even move to the level of Rs 350.