Short-term target for Nifty to remain between 10,900-11,000: Devang Shah

Short-term outlook for the market remains positive till Nifty trades above 10,417 levels, says Devang Shah

NIFTY      

CLOSE- 10821.85 (22.06.2018)

Market closed 5th concecuitve week in positive territory. It slow but steady extending on upside as expecting. Its trading in channel as per daily chart attached. It has broken out of consolidation on upside at the end of weekly trading as expected. One should expect market to trend till upper end of channel towards higher levels targets as mentioned in short term. Any kind of decline or short term consolidation is stock specific buying opportunity till short term reverses.

BSE 500 index looks completed Bullish Tringular kind of strucutre in wave-4 as per chart attached. Its also trading in channel as per chart attached. And its almost at lower end of channel as per chart attached. One can expect strong break out on BSE 500 from this consoldation in coming trading session. One can expect higher levels targets till 17,000 levels in short to medium term for this index. It also indicating broader market to participate in rally from here on and also sharp revival in quality beaten down stocks of midcap & small cap index.

Short-term outlook for the market remains positive till Nifty trades above 10,417 levels and expecting targets in the range of 10,900-11,000 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and expecting targets in the range of 12,000-12,200 levels in medium term.

Bank Nifty closed weekly in positive territory. Its outperforming in short term. Its also trading in channel as per chart attached. It also broken out of trigular kind of consoldation structure in short term as per daily chart attached. 25900 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets till target1-27,250 & target2 -27,800 levels in short term & further above 29,600-30000 levels in medium term. Any kind of decline is also buying opportunity for Bank Nifty for short to medium term perspectives. 

10,600 & 11,000 levels is strong support & resistance levels range respectively based on option open interest data for expiry perspectives next week. By looking at current structure, I feel market is going to surpass all time high soon on main indices & this rally will have time wise consolidation rather than price wise correction in short term. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.

Momentum indicators Daily KST & DAILY MACD both went in to SELL indicating volatality in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 10,300-10,200 levels on Nifty & 33,600 levels on Sensex in short term.

Stock Picks: 

DHFL- BUY

CLOSE – Rs- 639

TARGET – Rs- 670-690

DHFL closed the weekly in positive territory. Its outperforming in short term. It’s trading above 20 DMA. Its daily momentum indicators are in BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-611 for the target of Rs-670-690 levels in short-term. 

TATA MOTORS - BUY

CLOSE – Rs- 307.35

TARGET – Rs- 320-332

TATA MOTORS closed the weekly in positive territory. It’s consolidating in narrow range. Its daily momentum indicators are in BUY. Its trading above 20 DMA.Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-295 for the target of Rs 320/332 levels in short-term. 

M&M- BUY

CLOSE – Rs- 909

TARGET – Rs 940-960

M&M closed the weekly in positive territory. It able to hold 40 DMA. Its weekly momentum indicators are in BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-875 for the target of Rs 940-960 levels in short-term. 

BATA INDIA- BUY

CLOSE– Rs 834

TARGET– Rs 850-860

BATA closed the weekly in positive territory. Its outperforming in short term. Its daily momentum indicators are in BUY. It has wave-V Up pending on daily chart. One can BUY with a stop loss of Rs-813 for the target of Rs 850-860 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 scrips mentioned above