Nifty outlook and key trading ideas by Devang Shah

Short-term outlook for the market remains positive till Nifty trades above 10,270 levels, says Devang Shah

NIFTY      

CLOSE- 10493 (22.12.17)

Market consolidated in a range after state election results. As expected it head towards higher levels in spite of high volatility at the beginning of week ahead of election results. It closed third consecutive week in a positive territory. It closed at an all-time high levels at the end of weekly trading session. One should expect market to trend towards higher levels targets till it reverses. Traders should stay stock specific & book profit regularly in this last phase of extended rally.

Short-term outlook for the market remains positive till Nifty trades above 10,270 levels and expecting target of 10,700-10,850 levels in short-term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and expecting targets in the range of 12,000-12,200 levels in medium term.

Bank Nifty also closed the week in a positive territory. It consolidated in range after state election Results. It is also showing signs of extension on upside after high volatility in short term. Short term outlook for Bank Nifty remains positive till it trades above 25,200 levels & expecting target1-26200 levels & target2-26400 levels in short term. Any kind of decline or consolidation is buying opportunity for bank nifty till it reverses in short term.

I feel this is last phase of extended wave-(3) rally of Bull market & typically market will finally top Out in January for wave-(4) price wise correction as per Time cycle. Trader should be stock specific & closely watch out market behavior at higher levels.

10,000-10,500 is strong support & resistance levels respectively based on option open interest data for expiry perspectives next week. Any kind of short term correction or consolidation is 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. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will finally confirm price wise correction till 9880/9700 levels on nifty & 32300-31000 levels on Sensex in short term.

Stock Picks: 

BHARTI AIRTEL- BUY

CLOSE – Rs 531

TARGET – Rs 560-580

BHARATI AIRTEL closed the week in a positive territory. It is consolidating in narrow range for the week. Its momentum indicators are in BUY. Risk reward is favorable to buy at current levels. One can buy with stop loss of 500 for the target of Rs 560-580 levels in short term.

DCB BANK-BUY

CLOSE – Rs- 194.70

TARGET – Rs 203-213

DCB BANK closed weekly in positive territory. Its showing sing of extension short term. It managed to hold support of 40-DMA. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 187 for the target of Rs 203-213 in short-term. 

M&M- BUY

CLOSE – Rs- 747

TARGET – Rs 765-785

M&M closed the weekly in a positive territory. Its breaking out of very long term triangular kind of consolidation pattern. 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 710 for the target of Rs 765-785 in short-term. 

OFSS- BUY

CLOSE – Rs- 3970

TARGET – Rs 4170

OFSS closed the weekly in a positive territory. Its showing sign of extending further after completion of medium term correction. Risk reward is favorable to buy at current levels. Its momentum indicators are in BUY. One can buy with a stop loss of Rs 3880 for the target of Rs 4170 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.