Business Standard

Nifty Bank to maintain uptrend till it trades above 22,649: Devang Shah

Short-term outlook for the market remains negative till Nifty trades below 10,095 levels

Devang Shah  |  Mumbai 

markets, stocks, sensex, nifty, bse, nse

      
CLOSE-9788.60 (29.07.17)

Market corrected during the week and achieved short-term target levels on the lower side as expected last week. It made a low of 9,687.55 on and 31,081.83 on Sensex. It managed to find support around these levels. A pull back rally is possible till these support levels holds or any kind of further short-term reversal evidence is visible. One can expect 9,880-9,950 targets in this pull back rally. Break of lower end support levels will lead a sharp fall further towards revised short-term lower levels targets in this correction. Short-term trader should stay stock-specific and strictly follow the trend till it reverses.  

Market closed the second consecutive week in negative territory. It looks like Wave-4 short-term correction from wave count perspectives. By looking in general all Index & many stocks, it looks like weakness across the board & participation ratio on upside is also starting to deteriorate in every rise, stating strong case of weakness for short-term trend till it reverses.

Short-term outlook for the market remains negative till trades below 10,095 levels and is expecting target in the range of 9550-9450 levels in short term.Medium term outlook for the market remains positive till trades above 8968 levels and is expecting targets in the range of 12000-12200 levels in medium term.
 
Bank also achieved short-term target levels as expected earlier. It made a low of 23,609.10 levels so far in this correction. Short-term trend remains down till it trades below 24,765 levels and is expecting targets of around 22,800-23,000 levels in this correction. Overall medium-term trend remains still up till it trades above 22,649 levels. These kind of correction or consolidation  is stock specific buying opportunity for medium to long term investment perspectives.

9700/9500-10000 levels looks short term support & resistance levels respectively  based on option open interest data for this month series so far. Market will remain volatile ahead of RBI policy next week. Break of lower end support of 9700 levels will lead to sharp fall on for further lower levels targets in the short-term.

Momentum indicators Daily KST  &  daily MACD are in SELL showing weakness. Close above short-term reversal levels will only confirm rally towards higher levels targets of 10400-10500 levels on and 33,000-33,200 levels on Sensex in short-term. One should be stock specific and follow the trend with trail stop loss levels till it reverses. 

Stock Picks:

OFSS: BUY
 
CLOSE: Rs 3625
TARGET: Rs 3730-3850

closed the week in a positive territory. It is out performing in short-term. It is at the verge of breakout from consolidation range. Risk-reward is favorable to buy at current levels. Its Daily Momentum indicators are in BUY. One can buy with a stoploss of Rs 3,500 for the target of Rs 3,730-3,850 levels in short-term.

CUMMINS: BUY
 
CLOSE: Rs 925
TARGET: Rs 950-970

closed the week in a positive territory. It is at the verge of breakout from consolidation range. Risk-reward is favorable to buy at current levels. It closed above 20-DMA. One can buy with a stop loss of Rs 890 for the target of Rs 950-970 levels in short term.

TATA GLOBAL: BUY
 
CLOSE: Rs 206.45
TARGET: Rs 218/220

closed the week in a positive territory. It is out performing in the short-term. It has wave-V up pending on daily chart. Its weekly momentum indicators are in BUY. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 200 for the target of Rs 218/220 levels in short-term.

Devang Shah: The author of www.trendtechno.com (Trade with Trend) and an independent market analyst.

Disclaimer: The analyst may / may not have a position in the scrips mentioned above; the views given above are the personal views of the analyst. Consultant & Advisors in the world of Financial Market.

Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.

First Published: Tue, October 03 2017. 08:30 IST
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