Stock tips from Devang Shah of Sharekhan

NIFTY

CLOSE-7899.30

Market closed the second consecutive week in positive territory. It has achieved my short term target near recent high as expected last week. It made a high of 7,878.75 levels. All the other indices such Bankex, midcap, small cap etc closed the week in positive territory. It looks like an extension case for higher level targets in short term. One should use any kind of decline or consolidation to buy stocks and remain stock specific till short term trend reverses.

Short term out looks for the market remains positive till Nifty trades above 7,717 levels. We expect targets in the range of 8,120-8,336 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 6,825 levels & we expect targets in the range of 8,560-8,640-9,120 levels in medium term.

BANK NIFTY is also outperforming in the short term. It has already started wave-iii up. One can expect higher levels targets in the range of 17,600-18,000-18,800 levels short to medium term on bank nifty.

7,800 & 8,000/8,100 levels looks strong support & resistance respectively based on derivative option open interest data for this month’s expiry. Market will remain volatile ahead of expiry next week.

Momentum indicators daily KST & daily MACD both are in BUY supporting short term view. Sustain below short term reversal levels will lead to sharp correction at 7,500/7,400 levels in short term. One should be stock specific & follow the trend with stop loss levels till it reverses.

Stock Picks:

M&M: BUY

CMP: Rs 1,323

TARGET: Rs 1354/1380
 

M&M closed weekly in negative territory. It’s out performing in short term. It started wave-V up on daily chart after short term consolidation. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 1,302 for the target of Rs  1,354/1,380 in short term.

MARUTI SUZUKI: BUY

CMP: Rs 3,816

TARGET: Rs 4,000
 

Maruti closed weekly in positive territory. Its momentum indicators are in BUY. It started wave-III Up on daily chart. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 3,727 for the target of Rs 4,000 in short term.

SBI: BUY

CMP: Rs 200

TARGET: Rs 208/213
 

SBI closed weekly in positive territory. It started wave-C or wave-III up after short term consolidation. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 193.80 for the target of Rs 208/213 in short term.

SAIL: BUY

CMP: Rs 46

TARGET: Rs 48.50/51
 

SAIL closed weekly in positive territory. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of 44.75 for the target of Rs 48.50/51 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.