CLOSE- 11429.50 (10.08.2018)
Market closed 3rd concecutive week in positive terriotry. It has achieved my short term targets levels on nifty near recent high as expected last week. It made a high of 11,495.20 levels on nifty & 38,076.23 levels on sensex so far in this rally. Its slow & steady extending on upsdie with high volatality. One can expect market to extend futher towards higher levels targets as mendtioend below in short to medium term. Any kind of short term consolidation or correction is stock specific buying opportunity till short term reverses.
Midcap & small cap indices closed weekly in negative territory. It looks like impulsive structure on broader market from recent bottom on daily chart indicating end of medium term correction on broader market near recent lows. we will see sharp recovery in these stocks & indices in rally ahead. These divergence now ended & broader market will also join party with main indices Nifty & Sensex. Broader makret will catch up with main indices with faster face in rally ahead. One should still find out 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 10929 levels and expecting targets in the range of 11,500- 11,600 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9,951 levels and expecting targets in the range of 12,400-12,500 levels in medium term.
BANK NIFTY closed weekly in positive territory. It extended rally on upside as expected last week. It made a high of 28,386 levels so far in this rally during the week. It has also made an all time high in this week & became 3rd indices to make all time high after Nifty & Sensex. 26,926 levels is strong support for Bank Nifty for short term, till it holds one can exepct higher levels targets till 29650 levels in short term. 26,000 levels is crucial support for bank nifty from medium term perspectives, till it holds one can higher levels targets till 32,800-33,000 levels on Bank Nifty as per monthly chart attached here. It continue to outperform in rally ahead.
11,000/11,200 & 11,500 levels is strong support & resistance levels respectively based on option open interest data for current month series expiry perspectives. As exepcted market has made new life time high on nifty & sensex so far & By looking at current structure, I feel market is going to surpass all time high soon on rest of the other indices such as BANK NIFTY, BSE 500, Midcap & Small cap indices as well in coming months & 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.
Momentum indicators Daily KST & DAILY MACD both are in BUY supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 10,500-10,400 levels on Nifty & 34,900-34,300 levels on Sensex in short term.
GRANULES - BUY
CLOSE – Rs- 104.30
TARGET – Rs- 112-115
GRANULES closed the weekly in negative territory. It has wave-V up pending on daily chart. Its weekly momentum indicators are in BUY. Its trading above 20DMA. One can BUY with a stop loss of Rs-93.90 for the target of Rs 112-115 levels in short-term.
TCS - BUY
CLOSE – Rs- 1995
TARGET – Rs 2050-2100
TCS closed the weekly in positive territory. Its still trading above 20 DMA. It has wave-V up pending as per weekly chart. Risk Reward is favourable to BUY at current levels. Its daily mometum indicatros are in BUY.One can BUY with a stop loss of Rs-1870 for the target of Rs-2050-2100 levels in short-term.
POWERGRID - BUY
CLOSE – Rs- 189.25
TARGET – Rs 195-199
POWER GRID closed the weekly in negative territory. Its looks like impulsive structure from recent bottom. Risk Reward is favourable to BUY at current levels. Its daily momentum indicators are in BUY. One can BUY with a stop loss of Rs-180.35 for the target of Rs-195-199 levels in short-term.
BEL - BUY
CLOSE – Rs- 121.05
TARGET – Rs 127-133
BEL closed the weekly in positive territory. Its outperforming in short term.Its looks like end of medium term correction. Risk Reward is favourable to BUY at current levels. Its daily momentum indicators are in BUY. One can BUY with a stop loss of Rs-107.40 for the target of Rs-127-133 levels in short-term.
Devang Shah is 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