Short term target for Nifty is 8,000-8,116; Buy Axis Bank, Dish TV: Sharekhan

NIFTY
CLOSE - 7,942.70 (27.11.2015)

The Nifty closed 2nd consecutive week in positive territory. It was traded in very thin range during week. But it’s slowly inching upwards as anticipated last week. It made high of 7,959.30 levels. All the other indices such as midcap, small cap, bankex, etc, closed weekly in positive territory. Broader market is out performing at current levels of market. Its good sign for bulls for short term till it shows sign of reversal.

Short term out look for the market remains positive till Nifty trades above 7,823 levels & expecting targets in the range of 8,000-8,116 levels in short term. Medium term outlook for the market still remains negative till Nifty trades below 8,655 levels.

Nifty is trending in channel as per hourly charts. In that case,  one can expect market to trend towards upper end of channel till 8,000-8,020 levels in near term, sustain above it will finally confirm extension of recent pull back rally for further higher levels  targets in short term. 7,868 levels on Nifty is crucial lower end of channel support to watch out for in near term.

It can be also drawn as wedge kind of pattern on Nifty hourly chart in wave-B of pull back rally. It also has upper end resistance around 7,985-8,000 levels on Nifty. One should watch out market behaviour around these levels. Sustain above it will only confirm further higher levels targets in near term.

BANK NIFTY has also closed near upper end of range as per hourly chart, sustain above it will only confirm further rally towards 18,000-18,500 levels for Bank Nifty in short term. One should watch out its behaviour at these crucial resistance levels for short term. It has strong support near lower end of range around 16,970 levels as per chart attached.

Momentum indicators daily KST & Daily MACD both are in BUY supporting short term. Close below short term reversal levels will lead to sharp fall till 7,700-7,539 levels in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.

Stock Picks:

ALLAHABAD BANK - BUY
CLOSE - Rs 76
TARGET - Rs 79/81

ALLAHABAD BANK closed weekly in positive territory. It looks completion of short term correction. It closed above 20 DMA. Risk Reward is favourable to BUY at current levels. One can BUY with SL- Rs 74 for the target of Rs 79/81 in short term.

AXIS BANK - BUY
CLOSE - Rs 470
TARGET - Rs 485/505

AXIS BANK closed weekly in positive territory. It looks completion of short term correction. 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 464 for the target of Rs 485/505 in short term.

TATA COMMUNICATION - BUY
CLOSE - Rs 430
TARGET - Rs 455

TATA COM closed weekly in negative territory. It’s outperforming in short term. Its momentum indicators are in BUY. Risk Reward is favourable to BUY at current levels. It closed above 20 DMA. One can BUY with SL- Rs 426 for the target of Rs 455 in short term.

DISH TV - BUY
CLOSE - Rs 105
TARGET - Rs 112

DISH TV closed weekly in positive territory. Its momentum indicators are in BUY. Risk Reward is favourable to BUY at current levels. It closed above 20 DMA. Risk reward is favourable to buy at current levels. One can BUY with SL- Rs 103 for the target of Rs 112 in short term.


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

Devang Shah is a Portfolio Manager- PRO TECH-PMS at Sharekhan