Nifty outlook and four trading ideas by Devang Shah

Nifty is expecting targets in the range of 10,300-10,700 levels in the medium-term

NIFTY
 

CLOSE- 9173.75 (31.03.17)

Nifty closed the week in a positive territory. It traded in a narrow range for the entire week, and has consolidated in this range after achieving short term targets levels as expected so far in this rally. It witnessed profit-booking from higher levels after achieving short-term target levels. It made a high of 9218.40 levels on Nifty and 29,824.62 levels in Sensex. It managed to hold above 9,000 levels on Nifty. There is a strong possibility of extension case towards upper-end of channel as per daily chart in short-term. All the other indices also closed the week in a positive territory. One should expect market to trend towards revised short-term targets levels as mentioned below in short-term. 

Market is trending in channel as per daily chart and is still holding bullish trend as per Dow theory, which also indicates 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, its good sign at current levels of market.

Short-term outlook for the market remains positive till Nifty trades above 8,860 levels and is expecting targets in the range of 9500-9,550 levels (0.618% of wave-I) in 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 the short-term. It has surpassed the recent high. It is also extending in channel as per daily chart attached in short-term. 20,494 is strong support for Bank Nifty in the short-term. One can expect revised higher levels target of around 22,700 till upper end of channel as per daily chart is attached in short-term.

9000 is strong support & 9200/9500 levels in strong Resistance levels on Nifty based on derivative option open interest data for the expiry perspectives next week. Any kind of short-term correction or consolidation is buying opportunity for medium to long term investor. One can expect higher level 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 8,700-8,680 levels on Nifty & 28,102 levels on Sensex in short term. 

Stock Picks:

MARUTI -BUY
 

CLOSE-6024

Target-6150-6200

MARUTI closed the week in a positive territory. It looks like extension in wave-V in short term. It managed to hold above 40-DMA. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 5,930 for the target of 6,150-6,200 levels in short term.

PIDILITE- BUY
 

CLOSE-698.80

Target-728-745

PIDILIE closed the week in a positive territory. It’s outperforming in short-term. It closed above 20-DMA. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 680 for the target of Rs 728-745 levels in short-term.

GODREJ IND-BUY
 

CLOSE-504.50

Target-525-534

GODREJ INDUSTRIES closed weekly in negative territory. It’s consolidating in narrow range. Its momentum indicators are in BUY. It closed above 40 DMA. It has still wave-V up pending in short term. Risk reward is favourable to BUY at current levels. One can BUY with SL-484 for the target of 525-534 in short term.

PNB-BUY
 

CLOSE-150.70

Target-165

PNB closed weekly in positive 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 165 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.