Short-term outlook for the market remains positive: Buy Axis Bank, JSPL

NIFTY      

CLOSE- 10727.35  (04.01.2018)

The market closed weekly in marginally negative territory. It consolidated in a narrow range for the week. It made a low of around 10677 levels during the week. It’s still trading ina broad range of 10500-11000 levels from one month. One should watch out market behavior near these crucial levels. Able to break this range on the upside will finally confirmthe trend towards higher levels targets as mentioned below in short term. 

Short term wave count is still not conclusive or keep on varying but overall medium-term wave counts is indicating oan ngoing correction is buying opportunity from medium to long-term perspectives. We have seen the beginning of ba roader market (Midcap/Small cap indices) participation this week as well. It closed weekly in positive territory & remained outperformer during the 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 favorable to BUY stock specific at current levels of the market.

The short-term outlook for the market remains positive till Nifty trades above 10534 levels and expecting targets in the range of 11170-11450 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.

It may further remain in the broad range between 10000-11000 levels on nifty for some more time in short-term before giving a breakout on the upside. One should closely watch out the upper end of the range at a current level of the market for further confirmation of the same.

BANK NIFTY also closed weekly in positive territory. It consolidated in a narrow range of 26400-27500 levels for the week. One should watch out its behavior near these crucial levels. Able to break this range on the upside will finally confirm the trend towards higher levels targets. 26400 is strong support for short term till it holds one can expect higher levels targets till 28500 levels for 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.

10500 & 11000/11200 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 both are in sell indicating a volatile trend in short term. 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: 

CUMMINS – BUY

CLOSE – Rs 834

TARGET – Rs 880-910

CUMMINS closed the weekly in negative territory. It’s outperforming in short term. It managed to hold crucial support of 20 DMA. Its weekly momentum indicators are in BUY. One can buy with a stop loss of Rs 792 for the target of 880/910 levels in short term.

CONCOR – BUY

CLOSE – Rs 676

TARGET – Rs 698/715

CONCOR closed the daily in positive territory. It's outperforming in short term. It managed to hold 20DMA. 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 655 for the target of 698/715 levels in short term.

AXIS BANK – BUY

CLOSE – Rs 620

TARGET – Rs 638/650

AXIS BANK closed the weekly in positive territory. It’s trading in a narrow range 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 600 levels for the target of 638/650 levels in short term.

JSPL – BUY

CLOSE – Rs 153.20

TARGET – Rs 165

JSPL closed the weekly in positive territory. It’s trading in a 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 145 levels for the target of 165 levels in short term.

GODREJ IND – BUY

CLOSE – Rs 536

TARGET – Rs 565-580

GODREJ IND closed the weekly in positive territory. It’s trading in a 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 525 levels for the target of 565-580 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.