Amara Raja, Ultratech Cement among 4 stock picks of Devang Shah

NIFTY

CLOSE- 8740.95 (03.02.17)

Nifty closed 2nd consecutive week in a positive territory. It extended the gain on upside as expected last week. It made a high of 8757.60 levels so far during the week. It was a highly volatile week due to the budget event. All the other indices also extended gains as expected and closed weekly in a positive territory.

Short-term outlook for the market remains positive till Nifty trades above 8,537 levels and expecting targets in the range of 8,920-8,968 levels in the short-term correction. Medium term outlook for the market remains positive till Nifty trades above 7,893 levels and expecting target of 10,000 levels on the Nifty in medium term.

Short term outlook for Bank Nifty remains positive till it trades above 19,490 levels and expecting targets of around 20,650 levels in the short-term. Medium term outlook for Bank nifty also remains positive till it trades above 17,600 levels and expecting higher levels targets of around  26,800-27,000 levels in medium term. Broader market is also showing signs of strength, its good sign supporting overall trend.

Momentum indicators daily KST & daily MACD both are in BUY supporting short-term trend. 8,400-9,000 looks strong support and resistance levels respectively & also range for this month based on derivative option open interest data. Close below short term reversal levels will only confirm further possibility of correction in the form of profit-booking possibility till 8,460-8,400 levels. One should stay stock specific at current levels or buy on decline or consolidation till short-term trend reverses.

Stock Picks:

AMARA RAJA BATTERIES- BUY
 

CLOSE- Rs 909

Target- Rs 950

AMARA RAJA BATTERY closed weekly in positive territory. Its momentum indicators are in BUY. It also closed above 40-DMA. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 880 for the targets of Rs 950 in short-term.

CONTAINER CORP- BUY
 

CLOSE- Rs 1213.35

Target- Rs 1275/1340

Container Corp closed weekly in positive territory. It is out-performing in short-term. Its weekly momentum indicators are in BUY. It closed above 40-DMA. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 1180 for the target of Rs 1275/1340 in short term.

ULTRATECH CEMENT-BUY

CLOSE- Rs 3737.50

Target- Rs 3875/3970

Ultratech Cement closed the week in positive territory. It’s out performing in short term. Its Daily momentum indicators are in BUY. It closed above 20-DMA. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 3,625 for the targets of 3,875/3,970 in short term.

M&M-BUY

CLOSE- Rs 1246.25

Target- Rs 1318/1380

M&M closed weekly in positive territory. It’s out performing in short term. Its weekly momentum indicators are in BUY. It closed above 20-DMA. Risk reward is favourable to BUY at current levels. One can BUY with SL-1212 for the target of 1318/1380 in short term.

Devang Shah: The author of www.trendtechno.com (Trade with Trend)

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.