Business Standard

Technical calls: Buy HDFC, Sun TV, LIC Housing, Colgate and more

Short-term outlook for the market remains positive till Nifty trades above 9,955 levels and is expecting targets in the range of 10,350-10,400, says Devang Shah

Devang Shah  |  Mumbai 

stock, psu

NIFTY      
CLOSE- 10,167.45  (13.10.2017)

Market has finally concluded short-term reversal and it is extending further in wave-(V) of 3 from wave counts perspective. It also closed second consecutive week in a positive territory. It was looking like an end of wave-3 from wave count perspectives earlier, but market is in no mood for price-wise correction in short-term. We can expect market to trend towards higher targets as mentioned below conservatively in this rally in short-term. Any kind of decline or consolidation is a buying opportunity for short-term trader till trend reverses.

It appears euphoric move will continue further in this final phase of wave-(V) of three before we get any price-wise correction. There appear similar wave counts across all index. All the other indices also closed the week in a positive territory. “let party rock furhter across the board” in this final phase of rally. One should trail it and ride it with trailing stop loss levels as mentioned below till it reverses. Trader should be stock specific and book profit at regular intervals in this phase of rally in the short-term.  

Short-term outlook for the market remains positive till Nifty trades above 9,955 levels and is expecting targets in the range of 10,350-10,400 in short-term. Medium-term outlook for the market remains positive till Nifty trades above 8,968 and is expecting targets in the range of 12,000-12,200 levels in the medium term. 

Dow theory rocks further as mentioned many times in my market outlook about it and its importance particularly to ride the rally in bull market. This time also market made a double bottom around 9,700 levels on Nifty & started to rally further from these levels.

Nifty Bank also finally ended short term consolidation. It closed weekly in positive territory. It managed to found support around 24,000 levels. It also looks like wave-(V) of 3 beginning in bank nifty as well from wave count perspectives as per chart attached. One can expect higher levels targets till 26,600-27,000 levels till 24000 levels holds in short term. 

10,000/10,500 levels looks short term support & resistance levels respectively based on option open interest data for this series so far. Market is going to be volatile this month during the ongoing results season. Any kind of short-term correction or consolidation is a buying opportunity for medium to long term investment perspectives till medium term reverses.

Momentum indicators Daily KST  &  daily MACD both are in BUY supporting short-term trend. Close below short term reversal levels will lead to price-wise short term correction towards 9,680 levels on Nifty and 31,081.83 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: 

– BUY
CLOSE – Rs 1765.30
TARGET – Rs 1830
  
closed the week in a positive territory. It is on the verge of break-out from short-term consolidation. Its daily momentum indicators are in BUY. Risk-reward is favorable to buy at current levels. One can buy with a stoploss of Rs 1,720 for the target of 1,830 in the short-term.
  
- BUY
CLOSE – Rs- 798.85
TARGET – Rs 860-890
  
closed the week in a positive territory. It has started wave-V up. It’s still trading above 20-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 756 for the target of Rs 860-890 in short-term. 

CLOSE – Rs 651.20
TARGET – Rs 675-700

LIC HSG closed the week in negative territory. It looks like the end of short-term 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 635 for the target of  Rs 675 levels in short term.

AUROBINDO PHARMA- BUY
CLOSE – Rs 745.25
TARGET – Rs 775-795

AURO PHARMA closed the week in positive territory. It is out-performing in short term. 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 725 for the target of Rs 775-795  levels in short term.

ADANI ENTERPRISE- BUY
CLOSE – Rs 119.90
TARGET – Rs 132

ADANI ENTERPRISE closed the week in negative territory. It looks like end of medium term correction. Its daily momentum indicators are in buy. Risk reward is favorable to buy at current levels. One can buy with stop loss of Rs 116 for the target of  Rs 132  levels in short term.

COLGATE- BUY
CLOSE – Rs 1091.95
TARGET – Rs 1155

closed the week in a positive territory. It started wave-V up. Its daily momentum indicators are in buy. Risk reward is favorable to buy at current levels. One can buy with stop loss of 1050 for the target of Rs 1155  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, October 16 2017. 08:00 IST
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