Nifty can hit 12,000 - 12,200 in the medium term: Devang Shah

Recommends buying Maruti Suzuki, L&T Finance, NIIT Tech, Adani Ports and Ultratech Cement

NIFTY
CLOSE- 10085.40 (15.09.17)
 
Market finally broke out of short term Bullish Triangular consolidation range on upside as expected last week. It closed weekly in positive territory. Nifty managed to break finally above 10000 levels. One should expect market to trend towards higher levels targets as mentioned below in short term. Short term trader should be stock specific & book profit at regular intervals in this rally. All the other indices such as midcap & small cap & Nifty Bank also closed weekly in positive territory.
 
Short-term outlook for the market remains positive till Nifty trades above 9,988 levels and expecting target of 10,300-10,500 levels in 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.

 

Broader markets look started it wave-V of 3 as per monthly chart attached. I feel it will continue to outperform in this rally in short term. It may create euphoric phase & sharp rally  particularity midcap & small cap stocks in short term & Large cap index will catch up it once it breaks out of this narrow range in short term.
 
Nifty Bank also closed weekly in positive territory. It has also broken out of short term consolidation range on upside as expected earlier. 24,450 is strong support for short term till it holds one can higher levels targets in the range of 25,500-26,000 levels in short term & 27,000 levels in medium term as per chart attached.

 
9,900/10,000- 10,200 looks strong support & resistance levels respectively based on option open interest data for short term. Any kind of decline or consolidation is stock specific buying opportunity for medium to long term perspectives.
 
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 from trading perspectives. Close below short term reversal levels will lead to possible sharp price wise correction till 9680/9480 levels on nifty & 31,130/30,680 levels on Sensex in short term.
  

Stock Picks:
  
MARUTI SUZUKI– BUY
CLOSE – Rs 8,088
TARGET – Rs 8,200/8250
  
Maruti closed the weekly in a positive territory. It’s out-performing in short term. It has wave-V up is pending on daily chart. 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 7875 for the target of 8200/8250 levels in short term.
 
 L&T FINANCE- BUY
CLOSE – Rs- 206.90
TARGET – Rs 215/219
  
L&T Fin closed weekly in positive territory. Its showing sing of extension in short term. Its weekly momentum indicators are in BUY. Risk reward is favourable to buy at current levels. One can buy with stop loss of 200 for the target of 215/219 levels in short term.

  
ADANI PORTS- BUY
CLOSE – Rs 404
TARGET – Rs 420/425
  
Adani Ports closed weekly in positive territory. It has broken out of short term consolidation range of upside. It has wave-V UP Pending on upside as per weekly chart. Risk reward is favourable to buy at current levels. One can buy with stop loss of 390 for the target of 420/425 levels in short term.
 
NIIT TECH- BUY
CLOSE – Rs 499.70
TARGET – Rs 515-530
 
NIIT TECH closed weekly in positive territory. It has broken out of short term consolidation range on upside. Its daily momentum indicators are in buy. Risk reward is favourable to buy at current levels. One can buy with stop loss of 487 for the target of 515/530 levels in short term.

 
ULTRATECH CEMENT- BUY
CLOSE – Rs 4204.45
TARGET – Rs 4350-4450
 
Ultratech Cement closed weekly in positive territory. It’s outperforming in short term. Its daily momentum indicators are in buy. Risk reward is favourable to buy at current levels. One can buy with stop loss of 4055 for the target of 4350-4450 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