 "Devang Shah of Sharekhan bets on HPCL, L&T, Axis Bank, Coal India")
Here is a list of top four trading ideas from Devang Shah of Sharekhan for the coming week:
NIFTY
CLOSE- 8,238.15 (16.10.2015)
Nifty closed 3rd consecutive week in positive territory. It managed to hold lower end support levels as expected & once again closed near upper end of range at the end of weekly trading session. Short term outlook for the market remains positive till nifty trades above 8147 levels & If its going to be TIME wise extension then, market will Extend till 8,330-8,360 levels in short term in this pull back rally & If its going to be PRICE wise extension then, market will sharply extend till 8450-8550 levels (till upper end of channel) in short term in this pull back rally. One should watch out market momentum & stocks behaviour in coming trading session to conclude the same for short term trend.
BSE MIDCAP also broken out of consolidation pattern as mentioned earlier. It also started wave-V up. Momentum from border market is still strong at current levels of market. Midcap, Small cap & Bankex indices etc also closed weekly in positive territory.
Market is moving UP very stock specific. Therefore, one should watch out market behaviour in coming trading session for confirmation of PRICE wise extension for further higher levels targets in short term based on stocks behaviour. 8,300-8,000 levels looks strong resistance & support levels respectively based on option interest data at current levels of market. & if it’s Time wise extension then, market will spend some more time in the range of 8,300-8,000 levels for short term before further trend established.
Momentum indicators daily KST & daily MACD both are in BUY supporting short term trend. Sustain below short term reversal levels will lead to sharp fall till 7,950-7,690 levels in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.
Stock Picks:
HPCL- BUY
CLOSE- Rs 803.60
TARGET- Rs 849
HPCL closed weekly in positive territory. Its Daily momentum indicators are in SELL. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with a stop loss of Rs 780 for the target of Rs 849 levels in short term.
AXIS BANK- BUY
Close- Rs 504
TARGET-535
AXIS BANK closed weekly in positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with a stop loss of Rs 491 for the target of Rs 535 levels in short term.
L&T- BUY
Close- Rs 1,606
TARGET- Rs 1,680
L&T closed weekly in positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It has started wave-C up on daily charts. One can BUY with a stop loss of Rs 1,563 for the target of Rs 1,680 levels in short term.
COAL INDIA- BUY
Close- Rs 338
TARGET- Rs 353
COAL INDIA closed weekly in positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with a stop loss of Rs 333 for the target of Rs 353 levels in short term.
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.
Devang Shah is a Portfolio Manager- PRO TECH-PMS at Sharekhan
NIFTY
CLOSE- 8,238.15 (16.10.2015)
Nifty closed 3rd consecutive week in positive territory. It managed to hold lower end support levels as expected & once again closed near upper end of range at the end of weekly trading session. Short term outlook for the market remains positive till nifty trades above 8147 levels & If its going to be TIME wise extension then, market will Extend till 8,330-8,360 levels in short term in this pull back rally & If its going to be PRICE wise extension then, market will sharply extend till 8450-8550 levels (till upper end of channel) in short term in this pull back rally. One should watch out market momentum & stocks behaviour in coming trading session to conclude the same for short term trend.
More From This Section
CNX BANKEX also surpassed crucial resistance levels of 17860 levels as mentioned last week & closed above it at the end of trading session. Its good sign at current levels of market.18100-18150 levels is short term resistance for CNX BANKEX in short term, able to sustain above it will confirm PRICE wise extension for CNX BANKEX till 18,600 levels in short term. 17,500 is strong support /reversal levels for short term.
BSE MIDCAP also broken out of consolidation pattern as mentioned earlier. It also started wave-V up. Momentum from border market is still strong at current levels of market. Midcap, Small cap & Bankex indices etc also closed weekly in positive territory.
Market is moving UP very stock specific. Therefore, one should watch out market behaviour in coming trading session for confirmation of PRICE wise extension for further higher levels targets in short term based on stocks behaviour. 8,300-8,000 levels looks strong resistance & support levels respectively based on option interest data at current levels of market. & if it’s Time wise extension then, market will spend some more time in the range of 8,300-8,000 levels for short term before further trend established.
Momentum indicators daily KST & daily MACD both are in BUY supporting short term trend. Sustain below short term reversal levels will lead to sharp fall till 7,950-7,690 levels in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.
Stock Picks:
HPCL- BUY
CLOSE- Rs 803.60
TARGET- Rs 849
HPCL closed weekly in positive territory. Its Daily momentum indicators are in SELL. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with a stop loss of Rs 780 for the target of Rs 849 levels in short term.
AXIS BANK- BUY
Close- Rs 504
TARGET-535
AXIS BANK closed weekly in positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with a stop loss of Rs 491 for the target of Rs 535 levels in short term.
L&T- BUY
Close- Rs 1,606
TARGET- Rs 1,680
L&T closed weekly in positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It has started wave-C up on daily charts. One can BUY with a stop loss of Rs 1,563 for the target of Rs 1,680 levels in short term.
COAL INDIA- BUY
Close- Rs 338
TARGET- Rs 353
COAL INDIA closed weekly in positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with a stop loss of Rs 333 for the target of Rs 353 levels in short term.
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.
Devang Shah is a Portfolio Manager- PRO TECH-PMS at Sharekhan