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Nifty outlook and six trading ideas by Devang Shah for today's trade

Market is still holding Dow Theory support on weekly charts

Devang Shah  |  Mumbai 

technicals

NIFTY       
CLOSE- 9974.40 (01.09.17)

Market closed third consecutive week in a positive territory. It made a high of 9983.45 levels during the week and was able to close near high at the end of weekly trading session. It managed to hold lower end support levels and breaking consolidation range of last couple of weeks on upside as expected earlier. It appears one more leg on upside is still pending in the short-term till it reverses. Any kind of decline or consolidation is stock-specific buying opportunity for short to medium term perspectives.

Short-term outlook for the market remains positive till Nifty trades above 9,685 levels and is expecting target of 10,300-10,500 levels in the 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 the medium term.

Market is still holding Dow Theory support on weekly charts. As mentioned many times in my updates about relevance of such supports in these kind of extended At least for immediate short-term also, recent lows of 9,685 on Nifty and 31,128 on Sensex are strong support for trading perspectives.

9,500/9,700- 10,000 levels in strong support and Resistance levels respectively on Nifty based on derivative option open interest data this month series. Sustain above 10,000 levels will lead to sharp rise towards higher levels targets in the short term. Failed to sustain above 10,000 levels will lead to range bound trend between 9,500/9,700-10,000 levels on Nifty for short term. My preferred view is likely to break this range of upside & expecting higher levels targets as mentioned above in short term.

also closed 3rd consecutive week in a positive territory. It also managed to hold lower end support/Reversal of near 23,882 levels. One can expect short term targets in the range of 25,300-25,500 levels till this lower end support holds. It has also one more leg on upside is still pending towards short term targets levels till it reverses. It has strong support around 20,649 levels, till it holds that, one can expect higher levels targets to 27,000 levels in medium term.

Momentum indicators Daily KST & daily MACD both are in BUY Supporting short term trend. one should BUY stock specific & follow the trend with trail stop loss levels till it reverses from trading perspectives. Close below short term reversal levels will lead to possible sharp price wise correction till 9,480 levels on Nifty & 30,680 levels on Sensex in the short term. 

Stock Picks:

– BUY
 
CLOSE – Rs 1139.70
TARGET – Rs 1170/1200

closed the weekly in a positive territory. It looks like end of short term consolidation. It managed to hold 200-DMA. Risk reward is favorable to buy at current levels. Its Daily Momentum indicators are in BUY. One can buy with a stop loss of Rs 1100 for the target of Rs 1170/1200 levels in the short term.

GODREJ INDUSTRIES: BUY

CLOSE: Rs 625
TARGET: Rs 650/680

closed the week in a positive territory. It looks like end of short-term correction. Its momentum indicators are in BUY. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 590 for the target of Rs 650/680 levels in short-term.

LIC HOUSING: BUY
 
CLOSE: Rs 681
TARGET: Rs 700/720

LIC HSG closed the week in a positive territory. It looks like the end of short term correction. Risk reward is favorable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with stop loss of Rs 650 for the target of Rs 700/720 levels in short term.

IOC- BUY
 
CLOSE – Rs 448.20
TARGET – Rs 465/480

IOC closed weekly in positive territory.It is outperforming in short term. Its weekly momentum indicators are in BUY.Risk reward is favorable to buy at current levels. One can buy with stop loss of 425 for the target of 465/480 levels in short term.

GSFC- BUY
 
CLOSE: Rs 144.45
TARGET: Rs 150-152

GSFC closed the week in a positive territory. It is outperforming in short term. It has wave-V up pending on daily charts. Its daily momentum indicators are in BUY. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 140 for the target of Rs 150-152 levels in short term.

INDIABULLS REAL ESTATE- BUY

CLOSE: Rs 246.50
TARGET: Rs 260-270

INDIABULLS REAL ESTATE closed the week in a positive territory. It looks like the end of short term consolidation. It has wave-V up pending on daily charts. Its daily momentum indicators are in BUY. Risk-reward is favorable to buy at current levels. One can buy with a stop loss of Rs 233 for the target of Rs 260-270 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: Mon, September 04 2017. 08:23 IST
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