Stock tips from Devang Shah of Sharekhan

NIFTY
CLOSE- 8328.35 (01.07.2016)

Market closed weekly in positive territory after decline of consecutive last 3 weeks. It ended short term correction & made a panic low of 7927.05 levels on BRE-EXIT day. All the other indices such as BANKEX, MIDCAP, and SMALL CAP etc also closed weekly in positive territory.

Nifty is trading in parallel channel on daily Chart. It has managed to find support near lower end of channel  near recent lows. One can expect it to trade towards upper end of channel towards short term targets levels. It can be either Extension in wave-C or wave-III up from wave count perspectives but conclusively both are Bullish wave count.

Short term out look for the market remains positive till nifty trades above 8080 levels & expecting targets in the range of 8500-8550 levels in short term. Medium term out look for the market remains positive till nifty trades above till nifty trades above 7715 levels & expecting targets in the range of 8640-8844-9120 levels in medium term.

BANK NIFTY also completed short term correction. It also managed to find support near lower end of range near recent lows.  One can now expect it trade towards upper end of channel towards higher levels target of 18550-18600 levels in short term. 17300 is strong support for short term.

Broader market is also out performing at current levels of market, its good sign supporting overall trend.

As mentioned many times in my updates that its stock Picker markets. One needs to strongly research to identify Driver Stocks of recent overall up trend to get the benefit of the trend. Investors are winners & traders are losers in this kind of volatile markets esp. in short term. Those who are holding out performing stocks of recent rally from medium term perspectives, getting benefit in spite of short term jitters.

Momentum indicators Daily KST & Daily MACD both came to BUY today supporting short term trend. One should use any kind of decline or consolidation to BUY till short term reverses. One should be stock specific & follow the trend till it reverses.

Stock Picks:


KOTAK BANK- BUY
CLOSE-752
TGT-778/810

KOTAK BANK closed weekly in Positive territory. It’s out performing in short term. Its daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-735 for the target of 778/810 levels in short term.

VEDL- BUY
CLOSE-135
TGT-150

VEDL closed weekly in Positive territory. It’s outperforming in short term. Its daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with      SL-122 for the target of 150 levels in short term.

BOSCH- BUY
CLOSE-22500
TGT-23900

BOSCH closed weekly in positive territory. It’s out performing in short term. Its daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-21900 for the target of 23900 levels 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.