NIFTY: CLOSE – 9,665.80 (07.07.17)
Market managed to find support near lower end of range as expected last week & closed weekly in positive territory at the end trading session this week. It made a high of 9,700.70 levels, close to all time high levels this week. It’s facing resistance around 9,700 levels on Nifty. It closed near upper end of range at the end of weekly trading session. Able to close above these levels will further confirm rally towards higher levels targets in short term. I still believe its extended rally till DOW THEORY supports holds as mentioned last week. One should strictly follow Short term trend till it reverses with revised stop loss levels and use such kind of decline or consolidation to BUY stock specific from medium to long term perspectives.
Short-term outlook for the market remains positive till Nifty trades above 9,448 levels and is expecting target of -9,800-9,850 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,327 levels and is expecting targets in the range of 10,300-10,700 levels in medium term.
Although Nifty/Sensex, Nifty Bank closed monthly in negative territory at the end this month, bears can argue of short trend reversal but I want to wait for DOW THEORY supports to break to finally conclude short term reversal.
Nifty Bank is still consolidating in narrow range. It closed weekly in positive territory. Its under-performing in short term. It still managed to hold lower end support of around 22,400 levels, till it holds one can expect higher levels targets till 25,200 levels in short term. One can also expect higher levels targets till 27,200 levels medium term.
9,400- 9,800 levels in strong support & Resistance levels respectively on nifty based on derivative option open interest data so far for this month. Close below short term reversal levels will only lead to price wise correction in market in short term. Therefore, Risk reward is favorable to BUY at current levels till short term reverses.
Midcap and Smallcap indices closed monthly in positive territory. It still looks like medium term Bullish consolidation from wave count perspectives on these Indices. And its indicating market is going to go to much more higher levels beyond anticipation in medium to long term. One should BUY quality stocks from these segments in this correction.
Momentum indicators Daily KST & daily MACD both Came in to BUY supporting short term trend but one should wait for price reversal to conclude short term reversal till that one should be 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 correction till 9270/9000 levels on nifty & 29800/29200 levels on sensex in short term.
TATA MOTORS – BUY
CLOSE – Rs 436.30
TARGET – Rs 448-460
TATA MOTOR closed the weekly in a positive territory. It looks like end of medium correction. 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 426 for the target of 448-460 levels in short term.
ACC - BUY
CLOSE – Rs 1,610.10
TARGET – Rs 1,660
ACC closed weekly in positive territory. Its looks like end of medium term correction. Its momentum indicators are in BUY. Risk reward is favorable to buy at current levels. One can buy with stop loss of 1,570 for the target of 1,660 levels in short term.
HDFC LTD - BUY
CLOSE – Rs 1629.20
TARGET – Rs 1165-1700
ACC closed weekly in negative territory. It managed to hold crucial support of 40DMA. Risk reward is favorable to buy at current levels. One can buy with stop loss of 1600 for the target of 1665-1700 levels in short term.
BALRAMPUR CHINI - BUY
CLOSE – Rs 154.75
TARGET – Rs 162
BALRAMPUR CHINI closed weekly in positive territory. It looks like end of medium term correction. It still holds support of 200 DMA. Risk reward is favorable to buy at current levels. One can buy with stop loss of 148 for the target of 162 levels in short term.
NIIT TECH - BUY
CLOSE – Rs 557.20
TARGET – Rs 580-600
NIIT TECH closed daily in positive territory. Its still hold support of 200 DMA. Risk reward is favorable to buy at current levels. One can buy with stop loss of 540 for the target of 580-600 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