Expect Nifty to touch 10,400 levels in the short-term: Devang Shah

NIFTY       

CLOSE-10066.40 (04.08.17)

Market achieved most awaited 10,000-mark on Nifty. It has achieved my first short-term target near recent high. It made a high of 10,137.90 levels on Nifty and 32,686.48 levels on Sensex so far in this rally. It closed 5th consecutive week in a positive territory. It also managed to close above 10,000 levels on Nifty at the end of weekly trading session. It still looks like possibility of extension case further based on overall wave counts in short term. 9900-9800 levels on nifty is strong support for short term from trading perspectives. We may see some kind of profit booking or consolidation around these levels in the short-term, but any kind of decline is still buying opportunity for short to medium-term. One should  still expect higher levels targets till short term reverses before any kind of major price-wise correction.

Short-term outlook for the market remains positive till Nifty trades above 9,709 levels and is expecting target of 10,400 levels in the short-term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and is expecting targets in the range of 12,000-12,200 levels in medium term.

Bank Nifty has also achieved my short-term target of around 25,100 levels near recent high as expected earlier. It also closed 5th consecutive week in a positive territory. It made a high of 25,260 levels so far in this rally. It still looks like possibility of extension case based on wave counts in the short-term. 23,900-24,200 levels is strong support zone in the short term. One can expect higher targets till 27,000 levels in the short to medium term. We may see some kind of profit-booking or consolidation around these levels in the short term but any kind of decline is still buying opportunity for short to medium term till it reverses. 20,934 is strong support and reversal levels on Bank Nifty from medium to long term perspectives.

Broader markets, particularly midcap & small cap Indices are still under-performing after surpassing last months’ high. It has to catch up in this rally on upside. One should watch out for its behavior in the short-term as additional confirmation for short term trend.

10,000- 10,400 levels are strong support and resistance levels respectively so far on Nifty based on derivative option open interest data for current month series. I am revising medium term reversal levels today. Risk Reward is favorable to BUY from medium to long term perspectives. Any kind of decline or short term consolidation is buying opportunity for medium to long term perspectives till medium term reverses.

Momentum indicators Daily KST & daily MACD both went in to SELL showing weakness may create volatility in short term. one should be stock specific & follow the trend with trail stop loss levels till it reverses from trading perspectives. Close below short term reversal levels will lead to possible sharp price wise correction till 9480 levels on nifty & 30680 levels on Sensex in the short-term. 

Stock Picks:

ADANI PORT: BUY

CLOSE: Rs 406.90

TARGET: Rs 418-425

ADANI PORT closed the week in a positive territory. It’s showing signs of extension based on daily chart. 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 389 for the target of 418-425 levels in short term.

NALCO: BUY

CLOSE: Rs 69

TARGET: Rs 75-80

NALCO closed the week in negative territory. It has completed short term correction. It managed to find support near 61.8% retracement levels & sharply reversed from these levels. Its weekly momentum indicators are in BUY. Risk-reward is favorable to buy at current levels. One can buy with a stop loss of Rs 66 for the target of Rs 75-80 levels in short term.

YES BANK: BUY

CLOSE: Rs 1809.15

TARGET: Rs 1900

YES BANK closed the week in negative territory. It’s showing signs of extension based on daily chart. Risk-reward is favorable to buy at current levels. One can buy with a stop loss of Rs 1763 for the target of Rs 1900 levels in short term.

NTPC: BUY

CLOSE: Rs 177.25

TARGET: Rs 192

NTPC closed weekly in positive territory. It has started wave-III up on daily charts. Risk-reward is favorable to buy at current levels. One can buy with stop loss of Rs 164 for the target of Rs 192 levels in short term.

ONGC: BUY
 

CLOSE: Rs 166.55

TARGET: Rs 171-175

ONGC closed the week in a  positive territory. It managed to hold crucial support of 20-DMA. Risk-reward is favorable to buy at current levels. One can buy with stop loss of Rs 163.35 for the target of Rs 171-175 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; the views given above are the personal views of the analyst.Consultant & Advisors in the world of Financial Market.

Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.