Here is a list of top two trading ideas and strategies from Devang Shah of Sharekhan for the coming week:
CLOSE- 7,749.70 (20.05.2016)
Market closed weekly in negative territory. It failed to sustain at higher levels as expected last week & further closed near lower end of range ay the end of weekly trading session. One should watch out market behaviour around these levels. It made a low of 7,735.75 levels. This consolidation is still looks like either running triangle or symmetric triangle possibility as mentioned earlier. All the other indices such as BANKEX, MIDCAP and SMALL CAP etc closed weekly in negative territory at the end of trading session.
BANK NIFTY is still out performing at current levels of market. It’s also trading in range. Whether it has completed wave-C or it will extend further is to watch out in short term. 16,450 is crucial support to watch out for Bank Nifty in short term. Break of it will lead to sharp fall in short term.
Short term outlook for the market remains negative till Nifty trades below 7,940 & expecting targets in the range of 7,680-7,630 levels in short term. I am revising my medium term reversal levels this week. It remains positive till Nifty trades above 7,517 levels & expecting targets in the range of 8,336-8,560-8,650-9,120 levels in medium term.
Market will remain volatile ahead of expiry next week. 7,700 looks strong support & 7,900/8,000 levels strong resistance for expiry perspectives based on derivative option open interest data for this month.
Momentum indicators daily KST & daily MACD both are in sell supporting short term trend. Break of today’s low i.e-7,735.75 levels will lead to possibility of correction to extend towards short term targets levels as mentioned above. One should be stock specific & follow the trend till it reverses.
CLOSE- Rs 956.15
TGT- Rs 974/ Rs 980
ASIAN PAINTS closed weekly in negative territory. It’s out performing in short term. It’s managed to hold crucial support of 40 HMA. It still has wave-V up pending on daily chart. Risk reward is favourable to BUY at current levels. One can BUY with SL- Rs 944 for the target of Rs 974/Rs 980 in short term.
TATA MOTORS - SELL
CLOSE- Rs 384.55
TGT- Rs 375/Rs 368
TATA MOTORS closed weekly in negative territory. Its looks like triangular consolidation in short term. Its daily momentum indicators are in sell. Risk reward is favourable to SELL at current levels. One can SELL with SL- Rs 389 for the target of Rs 375/Rs 368 levels in short term.
The author is Portfolio Manager- PRO TECH-PMS at Sharekhan
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.