-
ALSO READ
Short term outlook for markets remain negative, says Devang Shah
Stock tips from Devang Shah of Sharekhan; Buy RIL, Crompton Greaves
Short term outlook remains positive; Buy TCS, HDFC: Devang Shah
Stock tips from Devang Shah of Sharekhan; Buy HPCL, BPCL, Coal India
Short term outlook for markets remain positive, says Devang Shah
-
NIFTY
CMP- Rs 7210.75 (19.01.16)
Market closed weekly in positive territory. It consolidated in range for last entire week with high volatility. It so far failed to extend on down side for wave-V on daily chart as expecting. All the other indices such as Bankex, midcap, small cap etc also closed weekly in positive territory. Few of the evidences are started to show clue for short term reversal at the end of weekly trading session. It showing sign of end of correction at recent lows of 6869 levels on nifty but I would like to wait for one or two more trading session to get level wise (Price wise) confirmation to finally conclude short term trend reversal.
Short term out look for the market remains negative till nifty trades below Rs 7250 levels & expecting targets in the range of 6850-6800 levels in short term. Broader market ( Midcap, small cap Indices) & Bank nifty created negative divergence in short term at the end of weekly trading session., its not a good sign for short term, if market has completed correction. These indices has to also participate in rally if its end of correction. One should also watch out these indices behaviour apart from main index (nifty/Sensex) behaviour to finally conclude short term trend reversal. Medium term out look for the market still remains negative till nifty trades below Rs 7600 levels. Rs 7000/7300 levels on nifty are crucial support & Resistance levels respectively for short term based on derivative option open interest data for this expiry. Market will remain volatile ahead of expiry next week & also followed by Union budget at the end of this month. Momentum indicators daily KST & daily MACD came in to BUY may create volatility in short term. Close above short term reversal levels will lead to sharp rally till 7420-7500 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 1230.75
TARGET: Rs 1270/1280
Stop Loss: Rs 1203
M&M closed weekly in positive territory. It’s out performing in short term. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels.
BHARTI AIRTEL: BUY
TARGET: Rs 344
STOP LOSS: Rs 344
BHARTI AIRTEL closed weekly in positive territory. It’s out performing in short term. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels.
DHFL: SELL
CMP: Rs 152
TARGET: Rs 147/141
STOP LOSS: Rs 159
DHFL closed weekly in negative territory. It has still wave-V down pending on daily chart. It closed below 20 DMA. Risk reward is favourable to SELL at current levels.
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
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU