Short-term outlook remains positive; buy Wipro, PNB, ACC: Devang Shah

7,424 levels on Nifty & 24,450 levels on sensex are strong support for short term

NIFTY
CLOSE- 7510.20 (11.03.2016)

Market consolidated in thin range for the entire week & closed 2nd consecutive week in positive territory. It was traded in thin range between 7550-7420 levels for entire week. It looks like triangular consolidation of wave-IV as per hourly charts on both sensex & Nifty. One can expect market to trend towards higher levels targets in short term. 7424 levels on Nifty & 24,450 levels on sensex are strong support for short term.

Short term out look for the market remains positive till Nifty trades above 7220 levels & expecting targets in the range of 7600-7750 levels in short term. We are few points away from medium term reversal, Sustain above 7600 levels on nifty & 25000 levels on sensex will officially confirm medium term reversal.

All the other indices also closed weekly in positive territory. BANK NIFTY also looks like wave-IV consolidation as per hourly chart. One can also expect higher levels targets till 15600-15950 levels in short term. 14962 looks strong support for Bank nifty for short term.

Momentum indicators daily KST & daily MACD both are in BUY. Close below short term reversal levels will lead to sharp correction till 7050-6950 levels in short term. One should be stock specific & follow the trend till it reverses.

Stock Picks:

WIPRO - BUY
Close - Rs 539
Target - Rs 548/558

Wipro closed weekly in negative territory. It closed above 20 DMA. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL- Rs 533 for the target of 548/558 in short term.

ACC - BUY
Close - Rs 1224
Target - Rs 1259/1279

ACC closed weekly in negative territory. It closed above 20 DMA. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL- Rs 1218 for the target of Rs 1259/1279 in short term.

PNB - BUY
Close - Rs 82.15
Target - Rs 86/90

PNB closed weekly in Positve territory. It closed above 20 DMA. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL- Rs 80.45 for the target of Rs 86/90 in short term.

The author is Portfolio Manager- PRO TECH-PMS at Sharekhan

Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst