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Short-term target for Nifty expected between 10,900-11,000: Devang Shah

Nifty outlook and top stock ideas by Devang Shah

Devang Shah  |  Mumbai 

Photo: Shutterstock.com
Photo: Shutterstock.com

CLOSE- 10714.30 (29.06.2018)

Market closed weekly in negative terriotry. It failed to give breakout on upside from the range as expected last week. We have seen sharp sell off during the week ahead of expiry. It finally managed to hold lower end of range & sharply reversed at the end of weekly trading session. It made a low of 10,557.70 levels on & 34,937.15 levels on sensex during week. Its still trading in broad range of 10,400-10,900 levels on in near term. One should expect trending mometum across the board in market, once it breaks out of these range as per chart attached. Any kind of decline or short term consolidation is stock specific buying opportunity till short term reverses.

It still looks like wave-II of (5) consoldation phase on main indices Nifty/Sensex. There is strong divergence between Nifty/Sensex main indices & Broader Market in short term from last couple of months. And we have seen sharp sell off particularly in broader market in near term. I feel this divergence is going to end soon, once we break out of this short term range on main indices. And we will see strong rebound in broader market. This correction is opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives.

Short-term outlook for the market remains positive till Nifty trades above 10,417 levels and expecting targets in the range of 10,900-11,000 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 12,000-12,200 levels in medium term.

BANK NIFTY closed weekly in negative territory. Its consolidating in narrow range between 27,000-25,550 levels in near term. 25550 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets till 27,700 levels in short term & further above 29,600-30,000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.

10,500 & 11,000 levels is strong support & resistance levels based on option open interest data for currnet month series expiry perspectives. By looking at current structure, I feel market is going to surpass all time high soon on main indices & this rally will have time wise consolidation rather than price wise correction in short term. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.

Stock Picks:

DHFL- BUY

CLOSE - Rs 636.45

– Rs 670-690

closed the weekly in negative territory. Its outperforming in short term. Its consolidated in narrow range during the week. Its daily momentum indicators are in BUY. Risk reward is favorable to BUY at current levels. One can BUY with a of Rs-613 for the of Rs-670-690 levels in short-term.

GRANULES INDIA- BUY

CLOSE – Rs 80.70

– Rs 87-92

closed the weekly in negative territory. It’s looks like endof short term correction. It looks like falling wedge kind of short term bottoming pattern.Its weekly momentum indicators are in BUY. Risk reward is favorable to BUY at current levels. One can BUY with a of Rs-76 for the target of Rs 87-92 levels in short-term.

- BUY

CLOSE – Rs-1271.75

TARGET – Rs 1320-1350

closed the weekly in positive territory. It looks like end of short term correction. Risk reward is favorable to BUY at current levels. One can BUY with a of Rs-1205 for the target of Rs 1320-1350 levels in short-term.

GODREJ INDUSTRIES- BUY

CLOSE – Rs 628

TARGET – Rs 648-660

closed the weekly in positive territory. Its outperforming in short term. Its daily momentum indicators are in BUY. It has broken out of short term consolidation on upside. It managed to hold crucial support of 40 DMA. One can BUY with a stop loss of Rs-601 for the target of Rs 648-660 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

First Published: Mon, July 02 2018. 06:25 IST
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