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Stay stock sepcific in short-term at these crucial levels: Devang Shah

Short-term outlook for the market remains negative till Nifty trades below 10350 levels, Devang Shah

Devang Shah  |  Mumbai 

technicals

NIFTY CLOSE- 10265.65 (08.12.17) Nifty closed the week in a positive territory. It has broken crucial support of 10,094 levels in recent correction during week. It sharply bounced back from levels and closed above it at the end of trading session raising possibility of end of “abc” correction in short term from wave count perspectives and further it has still make open my bullish alternate of last extension of this rally for higher levels targets in short term as mentioned last week. But Rest of the evidences are still not confirming the same. One needs to wait for further confirmation for finally conclude short term reversal. One should be stock specific & closely watch out market behavior at these crucial levels of market. Short-term outlook for the market remains negative till Nifty trades below 10350 levels and expecting target of 9880-9700 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and expecting targets in the range of 12000-12200 levels in medium term. Bank Nifty has also broken crucial support of 24,900 levels in this correction during week but sharply bounced back from these levels & closed weekly in positive territory. It has also still make open my bullish alternate of last extension of this rally for higher levels targets in short term for bank nifty as mentioned last week. Short term out look for bank nifty still remains negative till nifty trades below 25,652 levels & expecting targets of 23900 levels in short term. Close above these levels will finally confirm extension of this rally for higher levels targets till 26,400-26,500 levels in short term. One should watch out its behavior for short term. 10,000-10,500 levels 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 for medium to long term Investment perspectives till medium term reverses. Momentum indicators Daily KST & daily MACD both are in SELL showing weakness supporting short term trend. Close above short term reversal levels will finally confirm extension of wave-(3) UP further for higher levels targets of 10,600-10,800 levels on Nifty and 34,400-34,800 levels on sensex in short term. Market will remain volatile ahead of Fed Policy meet & Gujarat election polls next week. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Stock Picks: DCB BANK- BUY CLOSE – Rs 188.10 TARGET – Rs 198-210 DCB BANK closed weekly in positive territory. Its consolidating in bullish triangular consolidation. Its trading near crucial support of 200 DMA. Risk reward is favorable to buy at current levels.

One can buy with stop loss of 165 for the target of 198-210 levels in short term. TATA CHEM-BUY CLOSE – Rs- 723.40 TARGET – Rs 765-800 TATA CHEM closed the positive in negative territory. Its consolidating in range in short term. It managed to hold support of 40-DMA. Risk reward is favorable to buy at current levels. Its weekly momentum indicators are in BUY. One can buy with a stop loss of Rs Rs 672 for the target of Rs 765-800 in short-term. COLGATE- BUY CLOSE – Rs- 1069.90 TARGET – Rs 1100-1150 closed the week in a positive territory. Its looks like 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 a stop loss of Rs 1022 for the target of Rs 1100-1150 in short-term. NTPC- BUY CLOSE – Rs- 180.50 TARGET – Rs 192-198 closed the week in a positive territory. Its looks like end of short term correction. Risk reward is favorable to buy at current levels. It closed above 20-DMA. One can buy with a stop loss of Rs 174 for the target of Rs 192-198 levels in short-term. IOC- BUY CLOSE – Rs- 405 TARGET – Rs 425-440 closed the week in a positive territory. Its looks like 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 a stop loss of Rs 385 for the target of Rs 425-440 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, December 11 2017. 08:29 IST
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