Stay stock specific in the ongoing correction phase: Devang Shah

NIFTY

CLOSE- 8243.80 (06.01.17)

Nifty closed second consecutive week in positive territory. It extended pull-back rally further as expected and closed around short term reversal levels at the end of weekly trading session. It made a high of 8305.55 levels on Nifty. I would like to wait for one or more trading sessions this week to finally conclude short term trend reversal.

It also looks like end of pull-back rally with right shoulder formation from wave count perspectives, if fails to confirm short term reversal. One should closely watch out market behaviour at these crucial levels of market for beginning of next round of correction. 

Short term outlook for the market still remains negative till Nifty trades below 8,306 levels and expecting targets in the range of 7,700-7,680 in this short term correction. Medium term outlook for the market remains negative till Nifty trades below 8,600 levels and expecting targets in the range of 7,600-7,300-7,000 levels in the medium term.

I am also revising medium term reversal levels keeping in mind overall structure of the market for this correction and reiterating same thing once again that medium to long term investor should buy stock specific in this correction in systematic way. It’s very good opportunity to buy quality stocks in this correction for investment perspectives, as overall long-term view of Indian equity bull market is still intact.

Momentum indicators Daily KST & DAILY MACD both are in BUY. One should watch out price to finally confirm short term trend reversal, till then, one should stay stock specific and follow the trend till it reverses from trading perspectives. Close above short term reversal levels will lead to further rally towards 8,480 levels on Nifty in short term.

Stock Picks:

IOC-BUY

CLOSE- Rs 346.35

Target- Rs 360

IOC closed the week in positive territory. It has wave-V up pending on upside. Its momentum indicators are in SELL. Risk reward is favourable to BUY at current levels. One can BUY with stoploss of Rs 333 for the target of Rs 360 in the short-term.

CONCOR- BUY

CLOSE- Rs 1167.75

Target- Rs 1200/1240
 

CONCOR closed daily in positive territory. It has wave-V up pending on daily chart. Its daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with stoploss of Rs 1122 for the target of Rs 1200-1240 in short term.

BEL-BUY

CLOSE-1411.65

Target-1472/1525

BEL closed weekly in positive territory. It closed above 20-DMA. Its daily momentum indicators are in BUY. One can BUY with stoploss of Rs 1,385 for the target of 1,472-1,525 in short term.

BALRAMPUR CHINI-BUY

CLOSE- Rs 134.60

Target- Rs 144

BALRAMPURCHINI closed weekly in positive territory. It is out performing in short term. Its daily momentum indicators are in BUY. It closed above 20-DMA. One can BUY with stoploss of Rs 125 for the target of Rs 144 in short term.

Devang Shah: The author of www.trendtechno.com (Trade with Trend)

Consultant & Advisors in the world of Financial Market.

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