Technical view: Nifty can hit 10,700 in the short-term

Market outlook by Devang Shah

NIFTY      

CLOSE- 10333.25 (15.12.17)

Market managed to find support at lower levels & sharply bounced back & closed 2nd consecutive week in positive territory. The recent correction turned out to be “ abc ”  as written on my last weekly update & now  expecting one more last leg on upside in short term till it reverses from wave count perspectives. One should expect market to trend towards higher levels targets till it reverses. Trader should be stock specific & book profit regularly in this last phase of extended rally as per chart attached.

Market has broken crucial support on Nifty & made a low of around 10033 levels on Nifty & 32,565.16 levels in recent correction. It made a “BEAR TRAP” at lower levels. It sharply bounced back from lower levels & further extending on upside which possibility already mentioned earlier in my weekly update as my preferred alternate which is now finally playing out from wave count perspectives.

Short-term outlook for the market remains positive till Nifty trades above 10140 levels and expecting target of 10700-10850 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 12000-12200 levels in medium term.

Nifty Bank outlook

NIFTY Bank closed weekly in positive territory. Its also showing sign of extension after high voltality in short term. Short term out look for BANK NIFTY remains positive till it trades above 24860 levels & expecting target1-26400 levels & target2-27000 levels in short term. Any kind of decline or consolidation is buying opportunity for bank nifty till it reverses in short term.

I feel this is last phase of extended wave-(3) rally of Bull market & typically market will finally TOP Out in January for wave-(4) price wise correction as per Time cycle. Trader should be stock specific & closely watch out market behavior at higher levels.

10000-10500 levels is strong support & resistance levels respectively based on option open interest data so far for December month series. Any kind of 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 came in to BUY supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will finally confirm price wise correction till 9880/9700 levels on nifty & 32300-31000 levels on sensex in short term.

STOCK PICKS

RIL- BUY

CLOSE – Rs 921.75

TARGET – Rs 954-975

RIL closed weekly in positive territory. Its consolidating in bullish triangular consolidation. Its managed  to hold  crucial support of 40 DMA. Risk reward is favorable to buy at current levels. One can buy with stop loss of 895 for the target of  954-975 levels in short term.

TATA CHEM-BUY

CLOSE – Rs- 718

TARGET – Rs 765-800

TATA CHEM closed weekly  in negative territory. Its consolidating in range in short term. It managed to hold support of  40-DMA. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 672 for the target of Rs 765-800  in short-term. 

COLGATE- BUY

CLOSE – Rs- 1071.15

TARGET – Rs 1100-1150

COLGATE closed the weekly in a positive territory. Its looks like end of short term correction.Risk reward is favorable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 1022 for the target of Rs 1100-1150  in short-term. 

NTPC- BUY

CLOSE – Rs- 177.25

TARGET – Rs 192-198

NTPC closed the weekly in a negative territory. Its looks like end of short term correction.Risk reward is favorable to buy at current levels. It managed to hold crucial support of 20WSMA. One can buy with a stop loss of Rs 173 for the target of Rs 192-198 levels  in short-term. 

BHARAT FIN- BUY

CLOSE – Rs- 1004

TARGET – Rs 1050-1070

BHARAT FIN closed the weekly in a positive territory. Its consolidating in range in short term.Risk reward is favorable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 980 for the target of Rs 1050-1070 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; the views given above are the personal views of the analyst.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.