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

NIFTY      

CLOSE- 10805.45  (14.12.2018)

The market closed weekly in positive territory after high volatility ahead of state election results during the week. It managed to hold short-term support levels as mentioned last week after knee-jerk reaction below its intraday at the beginning of the week. It made a low of 10333 levels on nifty & 34426 levels on Sensex during the week. One can expect the market to trend towards higher levels targets as mentioned below in short to medium term till it reverses. 

It looks like the beginning of wave-iii of 5 from shortwave count perspectives. We have seen broader market participation this week, its good sign at current levels of the market for medium to the long-term trend of the market as mentioned last week. Risk reward is favourable to BUY stock specific at current levels of the market.

The short-term outlook for the market remains positive till Nifty trades above 10333 levels and expecting targets in the range of 11000-11300 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 positive territory. It managed to hold short-term support levels as mentioned last week after knee-jerk reaction below its intraday at the beginning of the week. It made a low of 25700 levels during the week. One can expect higher levels targets till 28500 levels in short-term till this support level holds. 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.

10500 & 11000 levels is strong support & resistance levels respectively based on option open interest data for current month series. 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.

Momentum indicators Daily KST & DAILY MACD came in to BUY supporting short-term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close or sustain below short-term reversal levels will lead to correction till 10400/10200 levels on nifty & 34672/34000 levels on Sensex in short term.

Stock Picks: 

AXIS BANK – BUY

CLOSE – Rs 617.25

TARGET – Rs 635/655

AXIS BANK closed the week in a positive territory. It managed to hold 40 DMA. 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 600 for the target of 635/655 levels in short term.

UPL – BUY

CLOSE – Rs 763

TARGET – Rs 795/820

UPL closed the week in a positive territory. It’s outperforming in short term. It managed to hold 40DMA. 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 730 for the target of 795/820 levels in short term.

L&T – BUY

CLOSE – Rs 1413.85

TARGET – Rs 1465/1485

L&T closed the week in a positive territory. It’s outperforming in short term. It managed to hold 40DMA. 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 1365 for the target of 1465/1485 levels in short term.

CUMMINS – BUY

CLOSE – Rs 811.50

TARGET – Rs 835/860

CUMMINS closed the week in a positive territory. It’s outperforming in short term. It managed to hold 40DMA. 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 780 for the target of 835/860 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.