9,600-10,000 levels are strong support and resistance on Nifty: Devang Shah

Bank Nifty has more room of upside in recent rally from current levels, says Devang Shah

NIFTY       

CLOSE: 9886.35 (14.07.17)

Market extended gains as expected after an end of a short-term time-wise consolidation in the range of 9,500-9,700 levels on Nifty for around 4 weeks. It has achieved my short-term targets levels of 31,850 on Sensex and 9,850 levels on Nifty. It has made a high of 9913.30 on Nifty and 31,109.75 on Sensex so far in this rally. It closed second consecutive week in a positive territory. One can expect market to trend towards much awaited mile stone of 10,000 levels on Nifty and further more as mentioned below in short term. 

One can expect possibly some kind of profit booking from higher levels but till market holds lower end of channel as per short term wave counts & levels of around 9800 levels on Nifty, any kind of decline is also buying opportunity for short-term.

By looking at overall wave counts , I am revising today medium to long term targets as mentioned below. Its sign of CHEERS FOR BULLS for medium to long term perspectives. And Any kind of decline correction is stock specific buying opportunity for 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 10,100-10,400 levels in short term.I am revising Medium term targets levels on Nifty today. Medium term outlook for the market remains positive till Nifty trades above 8,327 levels and is expecting targets in the range of 12,000-12,200 levels in medium term.

Nifty Bank is also showing sign of extension this week after consolidation of last four weeks. It closed weekly in positive territory. Its trending in channel as per daily chart attached. It has strong support around 22,400 levels till it holds this, one can expect targets of around 27,000 levels in short to medium term. 

I feel Bank Nifty has under-performed the main index ( Nifty/Sensex) in last couple of weeks. Therefore, It has more room of upside in recent rally from current levels. One should stay stock specific in the banking sector to get benefit of recent rally at-least in the short-term.

Midcap & Smallcap indices closed the week in positive territory. It started to show strength further after an end of short term consolidation as expected & mentioned earlier. Broader markets, which are under-performing so far in this rally in short term, has started to show revival in the short term. It is very good sign for overall health of market in short term. One can expect Midcap & Smallcap to out-perform from current levels in these rally.

9,600-10,000 levels are strong support and resistance levels respectively on Nifty based on derivative option open interest data so far for this month series. A close below short term reversal levels will only lead to price wise correction in the market in the short term.

Momentum indicators Daily KST & daily MACD both are in BUY supporting short term trend. one should be stock specific and follow the trend with trail stop loss levels till it reverses from trading perspectives. A close below short-term reversal levels will lead to possible sharp correction till 9,270/9,000 levels on Nifty & 29,800/29,200 levels on Sensex in the short-term. 

Stock Picks:

HERO MOTOCORP – BUY

CLOSE – Rs 3,753

TARGET – Rs 3,900-3,950

HERO MOTOCORP closed the week in a positive territory. It’s consolidating in a narrow range in the short term. It has still wave-V up pending based on weekly chart.  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 3636 for the target of Rs 3,900-3,950 levels in the short term.

CESC - BUY

CLOSE – Rs 904

TARGET – Rs 968-1000

CESC closed weekly in positive territory. Its looks like end of medium term correction. It has still wave-V up pending on monthly chart. It’s momentum indicators are in BUY. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 860 for the target of Rs 968-1000 levels in short term.

TATA COMMUNICATIONS - BUY

CLOSE – Rs 669

TARGET – Rs 700-710
 

TATA COM closed the week in a negative territory. It managed to hold crucial support of 200-DMA.Its looks like end of medium term correction. It has still wave-V up pending on monthly chart.Risk reward is favorable to buy at current levels. One can buy with stop loss of 642 for the target of 700-710 levels in the short term.

REC- BUY

CLOSE – Rs 183.70

TARGET – Rs 193
 

REC closed the week in a positive territory. It has wave-V Up pending on daily charts. It still holds support of 20 DMA. Risk-reward is favorable to buy at current levels. One can buy with a stop loss of Rs 178 for the target of Rs 193 levels in short term.

TATA MOTORS - BUY

CLOSE – Rs 451.90

TARGET – Rs 470-485

TATA MOTORS closed the week in a positive territory. It has wave-V Up pending on daily charts. Risk reward is favorable to buy at current levels. One can buy with stop loss of Rs 441 for the target of Rs 470-485 levels in the 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.