Short-term outlook for market looks positive; Buy Axis Bank, Federal Bank

NIFTY      

CLOSE- 10526.75  (23.11.2018)

The market closed weekly in negative territory. It witnessed profit booking from higher levels. It looks like the completion of wave-i of I of 5. We may see consolidation or further profit booking in short term. But any kind of decline or consolidation in buying opportunity till short-term reverses. It looks like impulsive advance from the recent bottom. One can expect the market to trend towards higher levels targets as mentioned below in short to medium term till it reverses. 

We have seen sharp pullback rally from medium-term support levels. It looks like high possibility of the end of wave-IV correction across the board. We can expect higher levels targets in short to medium term. Risk reward is favourable to BUY stock specific at current levels. 

The short-term outlook for the market remains positive till Nifty trades above 9950 levels and expecting targets in the range of 10900-11100 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9951 levels and expecting targets in the range of 12500-12800 levels in the medium term.

BANK NIFTY also closed weekly in negative territory. It's slow & steady extending on the upside.25400 levels is strong support on Bank Nifty, till it holds one can expect higher levels targets till 26600-26800 levels in short term. 23600 levels is strong support on Bank Nifty from medium-term perspectives till it holds one can expect higher levels targets in the range of 30000-32000 levels in the medium term.

10400 & 10800 levels is strong support & resistance levels respectively based on option open interest data for expiry perspectives next week. Any kind of such short-term correction or consolidation is buying stock specific opportunity for medium to long-term Investment perspectives till medium term reverses. Broader market participation is important to watch out for supportive of medium-term view. State Election Results will be the key event to decide further trend with the momentum of the market.

Momentum indicators Daily KST went in to SELL but DAILY MACD is still in BUY indicating the volatile trend in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.

Stock Picks: 

AXIS BANK– BUY

CLOSE– Rs 615.40

TARGET– Rs 638/655

AXIS BANK closed the weekly in negative territory. Its consolidating in narrow range in short term. Risk reward is favorable to buy at current levels. Its momentum indicators on daily charts are in BUY. One can buy with a stop loss of Rs 592 for the target of 638/665 levels in short term.

FEDERAL BANK– BUY

CLOSE– Rs 80.50

TARGET– Rs 83.50/85.50

FEDERAL BANK closed the weekly in a positive territory. It’s consolidating in narrow range in short term. Risk reward is favorable to buy at current levels. Its weekly momentum indicators are in BUY. One can buy with a stop loss of Rs 76.85 for the target of 83.50/85.50 levels in short term.

GODREJ IND – BUY

CLOSE– Rs 520.30

TARGET – Rs 535/545

GODREJ IND closed the weekly in a positive territory. It’s outperforming in short term. 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 490 for the target of 535/545 levels in short term.

L&T FIN – BUY

CLOSE–  Rs 133

TARGET – Rs 143/148

L&T FIN closed the weekly in a negative territory. It’s consolidating in narrow range. It looks like end of medium-term correction. Risk reward is favorable to buy at current levels. It’s trading above 20 DMA. One can buy with a stop loss of Rs 122 for the target of 143/148 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 scripts mentioned above.