Short-term outlook for market looks positive; Buy Maruti, Bharat Forge

NIFTY      

CLOSE- 10682.20 (16.11.2018)

The market closed 3rd consecutive week in positive territory. It consolidated in a narrow range throughout the week. Its traded in a narrow range of 10440-10695 levels during the week and closed near high at the end of trading session. It still looks like an extension in impulsive advance structure 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 3rd consecutive week in positive territory. It's slow &  steady extending on upside.25400 levels is strong support on bank nifty, till it holds one can expect higher levels targets till 26700-27000 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  & 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. Broader market participation is important to watch out for supportive of medium-term view.

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.

Stock Picks: 

KOTAK BANK – BUY

CLOSE – Rs 1,171

TARGET – Rs 1190/1210

Kotak Bank closed the weekly in a positive territory. It looks like the end of short-term correction. 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 1123 for the target of 1190/1210 levels in short term.

MARUTI – BUY

CLOSE – Rs 7,331

TARGET – Rs 7590/7790

Maruti closed the weekly in a positive territory. It looks like end of medium-term correction. 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 7,000 for the target of 7590/ 7790levels in short term.

BHARAT FORGE – BUY

CLOSE – Rs 590

TARGET – Rs 610/630

Bharat Forge closed the weekly in a positive territory. It’s consolidating in a narrow range for 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 566 for the target of 610/630 levels in short term.

L&T FIN – BUY

CLOSE – Rs 132.95

TARGET – Rs 143/148

L&T FIN closed the weekly in a negative territory. It looks like the end of medium-term correction. Risk reward is favorable to buy at current levels. It 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.