Expect target of 10,300 levels for Nifty in medium term: Devang Shah

Recommends buying ITC, Vedanta, Britannia and HDFC

NIFTY: CLOSE-9,574.75 (26.06.17)
 
Market failed to sustain at higher levels & once again came near short term support/reversal levels at the end of weekly trading session. It made a high of 9,698.85 levels on nifty & 31,522.87 levels during week. It closed weekly in positive territory. It still looks like time wise correction in the form of bullish consolidation on main Index (Nifty and Sensex) till short term reverses. One should strictly follow Short term trend till it reverses and use such kind of decline or consolidation to BUY stock specific from medium to long term perspectives.
 
Short-term outlook for the market remains positive till Nifty trades above 9,500 levels and is expecting target of 9,850 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,327 levels and is expecting targets in the range of 10,300-10,700 levels in medium term.

 

Nifty Bank also closed weekly in positive territory. It has strong support around 23,000 levels as per chart attached till it holds one can expect higher levels targets till 27,000 levels in short to medium term.
 
9,500- 9,700 levels in strong support & Resistance levels respectively on nifty based on derivative option open interest data for expiry perspectives next week. Close below short term reversal levels will only lead to price wise correction in market in short term. Therefore, Risk reward is favorable to BUY at current levels till short term reverses.
 
We have seen sharp selling pressure particularly in mid-cap & small cap index & stocks in last 2 trading session last week. It still looks like medium term consolidation from wave count perspectives on these Index. And its indicating market is going to go to much higher levels beyond anticipation in medium to long term. One should buy quality stocks from these segments in this correction.

 
Momentum indicators Daily KST & daily MACD both are in SELL indicating weakness but one should wait for price reversal to conclude short term reversal till that 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 correction till 9,270/9,000 levels on Nifty & 29,800/29,200 levels on Sensex in short term.
 
Stock Picks:
 
ITC – BUY
CLOSE – Rs 310.90
TARGET – Rs 320-325
 
ITC closed the week in a positive territory. It’s looks like end of short term consolation in wave-IV & it has still wave-V Up pending. Its daily momentum indicators are in BUY. It also closed above 20 DMA. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 299  for the target of 320-325  levels in short term.

 
HDFC LTD - BUY
CLOSE – Rs 1,650
TARGET – Rs 1,685-1,690
 
HDFC LTD closed daily in positive territory. It still looks like wave-IV  consolidation on daily chart & wave-V up is still pending for higher levels targets in short term. It closed above 20 DMA. Risk reward is favorable to buy at current levels. One can buy with stop loss of 1605  for the target of 1685-1690 in short term.
 
BRITANNIA - BUY
CLOSE – Rs 3,640
TARGET – Rs 3,840-3,850
 
BRITANIA closed weekly in positive territory. It has still wave-V up pending on daily chart. Its daily momentum indicators are in buy. Risk reward is favorable to buy at current levels. One can buy with stop loss of 3,525 for the target of 3,800-3,850 in short term.

 
VEDANTA - BUY
CLOSE – Rs 237
TARGET – Rs 245-250
 
VEDANTA closed weekly in positive territory. It looks like end of medium term correction. Its still hold support of 200 DMA. Risk reward is favorable to buy at current levels. One can buy with stop loss of 226 for the target of 245-250 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