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

NIFTY     
CLOSE- 10323.05 (27.10.17)
 
Market extended further in this euphoric rally across the board as expected. It has achieved almost my short term targets levels range between 10,350-104,00 levels on Nifty & 33,700-33,800 levels on Sensex as expected earlier. It closed weekly in positive territory. It made a high of 10,366.15 levels on Nifty & 33,286.51 levels on Sensex so far in this rally. Trader should be stock specific & keep booking profit at regular intervals in short term. It looks like high possibility to extend this rally further towards revised short term target levels as mentioned below till it reverses. One should buy stock specific till it reverses.

 
I have drawn channel on both Nifty & Sensex weekly charts. It looks like high possibility of extension of this rally till upper end of channel as per weekly chart towards revised short term targets levels as mentioned below. In typical such kind of bull market normally wave-3 completes & touches upper end of channel before any kind of major price wise correction. It looks like high possibility to me at current levels of market till short term reverses. It will become strong fast & furious rally in this phase of market.

 
Short-term outlook for the market remains positive till Nifty trades below 10,067 levels and expecting target of 10,750-10,800 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and is expecting targets in the range of 12,000-12,200 levels in medium term.

 
It still looks like wave-(V) of 3 as per overall wave counts. “Will it extend further?” is completely depending upon behaviour of Bank Nifty in short term. Further extension in Bank Nifty will finally confirm euphoric liquidity driven rally to continue further towards revised higher levels targets as mentioned below in short term. One should look to buy Nifty Bank or selective banks to take the advantage of this rally in case of extension in short term. All the other indices such as Midcap, small cap etc also closed weekly in positive territory.
 
Nifty Bank also closed weekly in positive territory. It made a high of 25,138.90 levels so far in this rally. Extension of rally further on bank nifty will finally confirm rally towards higher levels targets till 26,800-27,000 levels on Nifty Bank in short term. 24,700 is strong support & 25,260 is strong resistance levels respectively on Nifty Bank in short term. Sustain above 25,260 levels will finally confirm extension of rally towards higher levels targets as mentioned above in short term.

 
10,000/10,200 levels is strong support & 10,400/10,500 levels is strong resistance levels respectively based on option open interest data so far for October month series. Market is going to be volatile ahead of result season this month. 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. Close below short term reversal levels will lead to price wise short term correction towards 9,680 levels on Nifty & 31,081.83 levels on Sensex in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.

 
Stock Picks:
 
SUN TV - BUY
CLOSE – Rs- 842.45
TARGET – Rs 890-950 
 
Sun TV closed the week in a positive territory. It has started wave-V up. It’s still trading above 20-DMA. Risk reward is favourable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 796 for the target of Rs 890-950 in short-term. 
 
GODREJ INDUSTRIES - BUY
CLOSE – Rs 583.40
TARGET – Rs 630-660
 
Godrej Industries closed daily in positive territory. It looks like end of short term correction. It has form triangular kind of pattern in this consolidation. It’s trading near 200 DMA in short term. Risk reward is favourable to buy at current levels. One can buy with stop loss of 569 for the target of 630-660 levels in short term.

 
AXIS BANK- BUY
CLOSE – Rs 484.50
TARGET – Rs 500-530
  
Axis Bank closed weekly in positive territory. It looks like end of medium term correction. It has form triangular kind of pattern in this consolidation. Risk reward is favourable to buy at current levels. One can buy with stop loss of 455 for the target of 500-530 levels in short term.
  
AUROBINDO PHARMA- BUY
CLOSE – Rs 760.70
TARGET – Rs 790-820
 
Aurobindo Pharma closed weekly in positive territory. It looks like end of short term correction. It managed to find support near 20 DMA. Risk reward is favourable to buy at current levels. One can buy with stop loss of 725 for the target of 790-820 levels in short term.

 
JAIN IRRIGATION- BUY
CLOSE – Rs 99.95
TARGET – Rs 110-118
 
 Jain Irrigation closed weekly in positive territory. It looks like end of medium term correction. Its daily momentum indicators are in BUY. Risk reward is favourable to buy at current levels. One can buy with stop loss of 95 for the target of 110-118 levels in short term. 
 
ADANI ENTERPRISES - BUY
CLOSE – Rs 129.75
TARGET – Rs 139-145
  
Adani Enterprises closed weekly in positive territory. Its showing sign of extension in short term. Its daily momentum indicators are in BUY. Risk reward is favourable to buy at current levels. One can buy with stop loss of 121 for the target of 139-145 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