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Nifty outlook and key trading ideas for Monday's trade by Devang Shah

Short-term outlook for the market remains positive till Nifty trades below 10,094 levels, says Devang Shah

Devang Shah  |  Mumbai 

markets, stocks, sensex, nifty, bse, nse
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NIFTY      
CLOSE- 10121.80 (01.12.17)

Market witnessed a sharp selling pressure and closed the week in a negative territory at the end of trading session. It made a low of 10,108.55 levels on Nifty and 32,797.78 levels on Sensex so far in this correction. It closed near a very crucial support/ reversal levels at the end of weekly trading session. One should watch out market behavior at these levels for short term. If Nifty holds above these levels, it will confirm further extension of rally on upside in short term or else there will be a sharp price wise correction in short term.

I have shared two alternates both on Nifty and Bank Nifty for short term till these support levels hold. My preferred one is Alternate-1for possibility extension on upside till short term reverses. Break of short term support levels will finally conclude Alternate-2 possibility of End of wave-3 one sided rally & will see sharp price wise correction in short term.

Short-term outlook for the market remains positive till Nifty trades below 10,094 levels and expecting target of 10,600-10,800 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and is expecting targets in the range of 12,000-12,200 levels in medium term.

Bank Nifty closed the week in a negative territory. It made a low of 25,211.30 levels. It also closed near crucial support of 25,200 levels as per chart attached. I also shared two alternates for short term as per chart attached. Able to hold these support levels will only confirm further upside extension possibility till 26,300-26,500 levels for short term. It is my preferred one as of now till short term reverses. Break of 24,900 levels will finally confirm sharp price wise awaiting correction till 23,000-23,600 levels in short term. 

10,000-10,500 range is strong support and resistance levels respectively based on option open interest data so far for December month series. Any kind of short term correction or consolidation is buying opportunity from medium to long term investment perspectives till medium term reverses.

Momentum indicators Daily KST & daily MACD both are in SELL showing weakness for short term trend but one should wait for price wise reversal to finally conclude short term trend reversal till that One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will finally confirm beginning of price wise short term correction towards 9680 levels on nifty & 31081.83 levels on Sensex in short term.

Stock Picks: 

DCB BANK- BUY
 
CLOSE – Rs 181.15
TARGET – Rs 195-210

closed the week in a negative territory. It is consolidating in bullish triangular consolidation. It is trading near crucial support of 200-DMA. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 165 for the target of Rs 195-210 levels in short term.

TATA CHEM-BUY
 
CLOSE – Rs- 712.15
TARGET – Rs 765-800

TATA CHEM closed the week in a negative territory. Its consolidating in range in short term. It managed to hold support of 40-DMA. Risk reward is favourable to buy at current levels. Its weekly momentum indicators are in BUY. One can buy with a stop loss of Rs 666 for the target of Rs 765-800 in short-term. 

DABUR INDIA- BUY
 
CLOSE – Rs- 341.30
TARGET – Rs 355-360

DABUR closed the week in a positive territory. It is consolidating in range for short term. Risk reward is favourable to buy at current levels. Its weekly momentum indicators are in BUY. One can buy with a stop loss of Rs 324 for the target of Rs 355-360 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: Mon, December 04 2017. 08:22 IST
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