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Short-term outlook for the market remains positive: Devang Shah

Short-term outlook for the market remains positive till Nifty trades above 10,534 levels and expecting targets in the range of 11,000-11,300 levels in short term

Devang Shah  |  Mumbai 

Markets, Buy, Sell, Stocks, Shares

NIFTY

CLOSE- 10863.65 (01.03.2019)

The closed in positive territory last week. During the week, it traded in a narrow range of 10,700-10,940 levels -- it made a high of 10,939.70 and a low of 10,729.30. A breakout from this range will lead to a trend with momentum towards short-term targets levels, as mentioned below, until it reverses. Any kind of decline or consolidation is a buying opportunity until short-term reverses.

It looks like an end of wave-II of five corrections near recent lows. Broader (Midcap/Small cap) outperformed during the week and it is a good sign at current levels of the It has to catch up now for further confirmation of the overall trend of the market. It has to participate in this rally now and this divergence between the main indices and the broader market is going to end soon. Risk Reward is favourable to BUY stock specific at current levels of the market.

The for the market remains positive until trades above 10,534 levels and expecting targets in the range of 11,000-11,300 levels in short-term. The medium-term outlook for the market remains positive until trades above 9,951 levels and expecting targets in the range of 12,500-12,800 levels in the medium term.

BANK NIFTY also closed weekly in positive territory. It looks like triangular kind of consolidation in wave-II as per chart attached. 26,500 levels is strong support on bank nifty, till it holds one can expect higher levels (target1-28,700/28,800 & target2-29,500 levels) in 23,600 levels is strong support for medium-term perspectives until it holds, one can expect higher levels targets in the range of 30,000-32,000 levels on medium-term perspectives

10,500/10,700 & 11,000/11,200 levels is strong support and resistance levels, respectively, based on option open interest data for expiry perspectives for current month series. Such short-term correction or consolidation is a stock specific buying opportunity for medium to long term investment perspectives till medium term reverses.

Momentum indicators Daily KST & DAILY MACD both came to BUY supporting the short-term trend. One should be stock specific and follow the trend with trail stop loss levels until it reverses. Risk Reward is favourable to BUY at current levels of the market. Close below reversal levels will lead to sharp correction till 10,300 levels on Nifty and 34,400 levels on Sensex in

Stock Picks:

– BUY

CLOSE – Rs 991

TARGET – Rs 1,070/1,110

closed weekly in positive territory. It looks like the end of the medium-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 950 for the target of 1,070/1,100 levels in the short-term.

– BUY

CLOSE – Rs 60.80

TARGET – Rs 64.5/68

closed weekly in positive territory. It looks like the end of the medium-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 57 for the target of Rs 64.5/68 levels in short term.

– BUY

CLOSE – Rs 183.70

TARGET – Rs 189/194

closed weekly in positive territory. It's outperforming in short term. 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 176 for the target of Rs 189/194 levels in short term.

– BUY

CLOSE – Rs 564

TARGET – Rs 580/600

closed weekly in positive territory. It looks like the end of the medium-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 550 for the target of Rs 580/600 levels in short term.

– BUY

CLOSE – Rs 183.15

TARGET – Rs 187/190

POWER GRID closed weekly in positive territory. It looks like the end of the medium-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 178.80 for the target of 187/190 levels in short term.


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: Tue, March 05 2019. 06:20 IST
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