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Nifty outlook and top trading ideas by Devang Shah for today

The short-term outlook for the market remains positive till Nifty trades above 10,940 levels and it is expected to move in the range of 11,800-12,000 levels.

Devang Shah  |  Mumbai 

Tata Investment Corp board approves Rs 4.5-billion share buyback

NIFTY

CLOSE- 11407.15 (17.05. 2019)

Market settled in the positive territory last week. It managed to hold on to the crucial support of 11,000 levels on Nifty, near its short-term reversal levels as mentioned below. It made a low of 11,108.30 so far in this correction. It’s still expected to trade in the range between 11,000-11,550 levels for short term till we get decisive breakout at either of side ahead of major election results this week. Any kind of decline or consolidation is buying opportunity in specific stocks till short term reverses.

Short-term outlook for the market remains positive till Nifty trades above 10,940 levels and it is expected to move in the range of 11,800-12,000 levels. Medium term outlook for the market remains positive till the index trades above 9,951 levels and the expected trading range is 12,800-13,200 levels.

Mid-and-small-cap indices ended the week in the negative territory. It’s still underperforming on short-term basis as compared to the main indices (NIFTY/and BANK NIFTY).

It has still managed to hold its September 2018 and February 2019 lows in this correction and closed around these levels. It has to catch up now for further confirmation of overall trend of the market. One should closely watch out broader market behavior in the coming weeks at current levels of market ahead of election results next week. It still looks like high possibility of end of this divergence at recent bottom and from now onwards, we will get broader market rally for higher level targets in short-to-medium term. Risk reward is favorable to buy individual stocks at current levels of market.

closed in positive territory in the week gone by. It made a low of 28,571 levels so far in this correction. It’s still trading in range between 28,500-29,400 levels for short term, till we get decisive breakout at either of side ahead of major election results next week. 27,000 level is strong support on Bank Nifty, till it holds that level, one can expect higher targets around 31,000-32,000 levels in short term. Any kind of decline or consolidation is buying opportunity till short term reverses.

23,600 is the strong support for medium-term perspective; till it holds this level, one can expect higher targets in the range of 34,000 levels on medium-term perspective.

11,000 and 12,000 levels are strong support and resistance levels, respectively based on option open interest (OI) data for current month series. Any kind of such short-term correction or consolidation is stock-specific buying opportunity for medium to long term perspective, till medium-term reverses. Market to remain volatile till the outcome of the general elections is known.

Momentum indicators Daily KST & DAILY MACD both are in SELL indicating volatility for short term. One should be stock-specific and follow the trend with trail stop loss levels till it reverses. Risk reward is favorable to BUY at current levels of market. Close below short-term reversal levels will lead to sharp correction till 10,800/10,400 levels on Nifty in the short term.

Stock Picks:

– BUY

CLOSE – Rs 91.40

TARGET – Rs 96/100

closed the week in the positive territory. It looks like an end of short term correction. It is outperforming in short term. Its daily momentum indicators are in BUY. It managed to close above 20-DMA. Risk reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 85.65 for the target of 96/100 levels in short term.

L&T – BUY

CLOSE – Rs 1,361.90

TARGET – Rs 1,400/1,420

L&T closed weekly in positive territory. It looks like end of short-term correction. Its daily momentum indicators are in BUY. It closed above 20 DMA. Risk Reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 1,300 for the target of Rs 1,400/1,420 levels in short term.

– BUY

CLOSE – Rs 800

TARGET – Rs 862

closed daily in positive territory. It looks like end of short term correction. It is outperforming in short term. Its daily momentum indicators are in BUY. It closed above 20-DMA. Risk reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 765 for the target of Rs 862 levels in short term.

HERO MOTOR – BUY

CLOSE – Rs 2,632

TARGET – Rs 2,720/2,820

On charts, the stock looks like end of short-term correction. It has broken out of its daily Triangular Pattern. Its Daily Momentum indicators are in BUY. It closed above 20 DMA. Risk reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 2,485 for the target of Rs 2,720/2,820 levels in short term.

– BUY

CLOSE – Rs 714.70

TARGET – Rs 750/790

closed daily in positive territory. It looks like end of short-term correction. Its Daily Momentum indicators are in BUY. Risk reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 682 for the target of Rs 750/790 levels in short term.

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Devang Shah: The author of www.trendtechno.com (Trade with Trend) and an independent market analyst.

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

First Published: Mon, May 20 2019. 07:43 IST
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