Nifty outlook and top trading ideas by Devang Shah for today

The short-term outlook for the market remains positive till Nifty trades above 11,171 levels, says Devang Shah

NIFTY      

CLOSE- 11680.50 (31.08.2018)

The market closed the 6th consecutive week in positive territory. It has extended further & achieved my revised short-term targets levels near recent high as expected last week. It made a high of 11,760.20 levels on Nifty & 38,989.65 levels on Sensex during the week. It looks like the first possibility of some consolidation in the market in the range of 11850- 11,400 levels on nifty in short-term before further trend resumes towards higher levels targets. Sustain above 11,850 levels will lead to a further extension of the rally towards 12,000 levels on nifty in short term. Any kind of short-term consolidation or correction is stock specific buying opportunity till short-term reverses.

The broader market such as midcap & small cap indices remained outperformer & closed weekly in positive territory. It is slow & steady extending on the upside as expected. Broader market will catch up with main indices with faster face in the rally ahead. One should still find out an opportunity to buy quality beaten down stocks of midcap & small cap index from medium to long-term perspectives. this rally will have time wise consolidation rather than price wise correction in short term.

The short-term outlook for the market remains positive till Nifty trades above 11,171 levels and expecting targets in the range of 11,850- 12,000 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9,951 levels and expecting targets in the range of 12,500-12,800 levels in the medium term.

BANK NIFTY closed weekly in positive territory. It consolidated in the narrow range of 27,800-28,400 levels during the week. Break of this range will lead to a sharp trend towards higher levels targets as mentioned below in short term. It made a high 28,408.80 levels so far in the rally. 26926 levels is strong support for bank nifty for short term, till it holds one can expect higher levels targets in the range of 28,900-29,800 levels in short term. 26,000 levels is crucial support for bank nifty from medium-term perspectives until it holds one can higher levels targets till 32,800-33,000 levels on Bank Nifty as per monthly chart attached here. 

11,400/11,500 & 12,000 levels is strong support & resistance levels respectively based on option open interest data for this month. Any kind of such 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 went in to sell indicating volatility in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short-term reversal levels will lead to sharp correction till 10,500-10,400 levels on Nifty & 34,900-34,300 levels on Sensex in short term.

Stock Picks: 

KOTAK BANK - BUY

CLOSE – Rs 1,284.75

TARGET – Rs 1,305-1325

KOTAK BANK closed the weekly in positive territory. It looks like the end of short-term correction. Its daily momentum indicators are in BUY. It is trading above 20DMA. One can BUY with a stop loss of Rs-1238 for the target of Rs 1305-1325 levels in short-term. 

JSPL - BUY

CLOSE – Rs 220.70

TARGET – Rs 230-240

JSPL closed the weekly in positive territory. It looks like the end of short-term correction. It managed to hold 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-203 for the target of Rs-230-240 levels in short-term. 

DCB BANK - BUY

CLOSE – Rs 178.60

TARGET – Rs 186-196

DCB BANK closed the weekly in positive territory. It looks like the end of short-term correction. Its daily momentum indicators are in BUY. It closed above 20DMA. One can buy with a stop loss of Rs-169 for the target of Rs-186-196 levels in short-term.

RAYMOND - BUY

CLOSE – Rs 839

TARGET – Rs 875-925

RAYMOND closed the weekly in positive territory. It looks like the end of short-term correction. Its daily momentum indicators are in BUY. It is trading above 20DMA. One can buy with a stop loss of Rs-802 for the target of Rs 875-925 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