Nifty outlook and five trading calls by Devang Shah for today's trade

NIFTY
 

CLOSE- 9198.30 (09.04.17)

NIFTY extended on upside as expected last week. It made a high of 9273.90, while Sensex hit a high of 30,007.50 so far in this rally. It witnessed profit booking from higher levels ahead of weekend and Nifty closed below 9,200 levels at the end of weekly trading session. The index is extending as expected as per simple Dow Theory as mentioned earlier as per daily chart. It’s advisable to trail with stoploss levels to get benefit of such kind of extended rally. All the other indices closed the week in positive territory. One should expect market to trend towards higher levels till short-term trend reverses.

NIFTY is trending in channel as per daily chart and is still holding bullish trend as per Dow Theory. It is also indicating possibility of strong bullish case in short-term. Broader market is also outperforming in short-term. It has also confirmed extension of rally in short-term. It is a good sign at current levels of market.

Short-term outlook for the market remains positive till Nifty trades above 9,024 levels and is expecting targets in the range of 9,500-9,550 levels in the 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.

BANK NIFTY has also confirmed extension of rally in short term. It has surpassed the recent high. It’s also extending in channel as per daily chart attached in short-term. 20,827 is strong support for Bank Nifty in short term. One can expect revised higher levels target of around 22,700 till upper end of channel as per daily chart attached in short-term.

9,000 is strong support and 9,200-9,500 levels is in strong resistance on Nifty based on derivative option open interest data for expiry perspectives next week. Any kind of short-term correction or consolidation in buying opportunity for medium to long-term investor. One can expect higher levels targets in medium to long-term.

Momentum indicators Daily KST & daily MACD both are in sell indicating weakness but one should be stock specific and follow the trend with trail stoploss levels till it reverses from trading perspectives. Close below short term reversal levels will lead to possible sharp correction till 8,860 levels on Nifty & 28,700 levels on Sensex in short-term. 

Stock Picks

EXIDE- BUY
 

CLOSE- Rs 225.85

Target- Rs 233-237

EXIDE closed the week in a positive territory. It is outperforming in short-term. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 219 for the target of Rs 233-237 levels in short term.

PIDILITE- BUY
 

CLOSE- Rs 708

Target- Rs 728-745

PIDILIE closed the week in a positive territory. It is outperforming in the short-term. It closed above 20-DMA. Risk reward is favourable to BUY at current levels. Its momentum indicators are in BUY. One can BUY with a stop loss of Rs 700 for the target of Rs 728-745 levels in short-term.

TATA CHEMICALS -BUY
 

CLOSE- Rs 604.50

Target- Rs 624

TATA CHEMICALS closed the week in negative territory. Its momentum indicators are in BUY. It closed above 20-DMA. It has still wave-V up pending in short term. Risk reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs 590 for the target of Rs 624 in short term.

PNB-BUY
 

CLOSE- Rs 149.30

Target- Rs 155-165

PNB closed the week in negative territory. It started wave-III UP on daily chart. Its daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-146.50 for the target of 155-165 in short term.

REC-BUY
 

CLOSE- Rs 184.85

Target- Rs 189

PNB closed the week in a positive territory. It is outperforming in the short term. Its daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 177 for the target of Rs 189 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.