Stock tips from Devang Shah of Sharekhan; Buy Cipla, L&T, M&M, RIL

Here is a list of top three trading ideas and strategies from Devang Shah of Sharekhan for the coming week

NIFTY

CLOSE- 7856.55 (20.11.2015)

The Nifty ended 3 weekly negative cycle & closed first week in positive territory. It has almost achieved my short term targets levels in this correction as expected earlier. It made a low of 7714.15 levels. All the other indices such as mid cap, small cap & Bankex etc closed weekly in positive territory, but going with weekly positive close & concluding short term reversal at the end of weekly trading session. One can expect Wave-B or Wave-Y UP Pull back rally in market towards short term targets levels as mentioned below till short term reverses.

Short term out look for the market remains positive till nifty trades above 7714 levels & expecting targets in the range of 8000-8116 levels in short term. Medium term outlook for the market still remains negative till nifty trades below 8655 levels.

7700 & 8000 levels so far looks strong support & resistance levels on nifty respectively from current month expiry perspectives based on derivative option open interest data. It may remain in this range ahead of an expiry next week.

Momentum indicators daily KST & Daily MACD both are in SELL may create volatility in short term ahead of expiry next week. Close below short term reversal levels will lead to sharp fall till 7650-7550 levels in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.

Stock Picks:

CIPLA-BUY

CMP- Rs 645.95

TARGET-Rs 660/670
 

CIPLA closed weekly in positive territory. It looks completion of short term correction. Risk Reward is favourable to BUY at current levels. One can BUY with STOP LOSS of Rs 632 for the TARGET of Rs 660/670 in short term.

RIL-BUY

CMP- Rs 945.95

TARGET- Rs 975/989
 

RIL closed weekly in positive territory. It’s outperforming in short term. It closed above 20 DMA. Risk Reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 932 for the target of Rs 975/989 in short term.

M&M-BUY

CMP- Rs 1316

TARGET- Rs 1400
 

M&M closed weekly in positive territory. It’s outperforming in short term. Its momentum indicators are in BUY. Risk Reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 1288 for the target of  Rs 1400 in short term.

L&T-BUY

CMP- Rs 1366.15

TARGET- Rs 1400/1450
 

L&T 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 1345 for the target of  Rs 1400/1450 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

The author is Portfolio Manager- PRO TECH-PMS at Sharekhan