 "Medium term outlook for the market remains negative: Devang Shah")
NIFTY
CLOSE- 8086.80 (02.12.16)
Nifty closed weekly in negative territory. It retraced around 38.2% of recent correction near recent high in this pull back rally. It made a high of 8250.80 levels on nifty. It looks like w-x-y-x-z pull back rally to be over till this high surpasses. We have seen 5 wave declines on nifty hourly charts from these highs, indicating beginning of next round of correction for further lower levels targets in short to medium term as mentioned below till short term reverses.
Bank Nifty also closed weekly in negative territory. It retraced around 23.6% in this pull back rally near recent high. It made a high of 18761 levels. It also looks like beginning of next round of correction towards further lower levels targets of around 16800 levels in short to medium term. Short term outlook for Bank Nifty remains negative till it trades below 19200 levels.
Short term outlook for the market still remains negative till Nifty trades below 8251 levels & expecting targets in the range 7700-7680 levels in short term. Medium term outlook for the market remains negative till Nifty trades below 8737 levels & expecting targets in the range of 7600-7300-7000 levels in medium term.
Markets remain volatile ahead of major events next week particularly of RBI Monetary policy meet & FED meet. 8000 & 8300 looks strong support & resistance levels respectively for short term based on derivative option open interest data. Break of 8000 levels on nifty will lead to sharp fall towards lower levels targets in short term.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatility in short term ahead of major events next week. One should use any kind of consolidation or rise to sell stock specific till short term reverses. Sustain above short term reversal levels will only confirm extension of pull back rally further rally towards 8330-8430 levels in near term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.
Stock Picks:
TATA MOTOR- SELL
CLOSE- Rs 434
Target- Rs 380
TATA MOTOR closed weekly in negative territory. Its looks like extension of correction further after short term consolidation. Its weekly momentum indicators are in sell. One can SELL with SL-468 for the target of 380 in short term.
INDUSIND BANK-SELL
CLOSE-Rs 1,066
Target-Rs 1,030/1,000
INDUSIND BANK closed weekly in negative territory. Its looks like end of short pull back rally. It closed below 20 DMA. Risk reward is favourable to SELL at current levels. One can SELL with SL-1103 for the target of 1030/1000 in short term.
SBI –SELL
CLOSE-Rs 255
Target-Rs 235/225
SBI closed weekly in negative territory. It looks like end of short term pull back rally. Risk reward is favourable to SELL at current levels. One can SELL with SL-270 for the target of 235/225 in short term.
TATA COMMUNICATIONS –SELL
CLOSE-628
Target-590/560
TATA COMMUNICATIONS closed weekly in negative territory. It looks like end of short term pull back rally. Its weekly momentum indicators are in SELL. Risk reward is favourable to SELL at current levels. One can SELL with SL-667 for the target of 590/560 in short term.
Devang Shah: The author of www.trendtechno.com (Trade with Trend)
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.
CLOSE- 8086.80 (02.12.16)
Nifty closed weekly in negative territory. It retraced around 38.2% of recent correction near recent high in this pull back rally. It made a high of 8250.80 levels on nifty. It looks like w-x-y-x-z pull back rally to be over till this high surpasses. We have seen 5 wave declines on nifty hourly charts from these highs, indicating beginning of next round of correction for further lower levels targets in short to medium term as mentioned below till short term reverses.
Bank Nifty also closed weekly in negative territory. It retraced around 23.6% in this pull back rally near recent high. It made a high of 18761 levels. It also looks like beginning of next round of correction towards further lower levels targets of around 16800 levels in short to medium term. Short term outlook for Bank Nifty remains negative till it trades below 19200 levels.
More From This Section
Broader market such as midcap, small cap closed weekly marginally in positive territory but Nifty midcap closed weekly in positive territory. It also looks like 5 wave decline fall on hourly charts in these indices from recent high indicating end of pull back rally at recent high.
Short term outlook for the market still remains negative till Nifty trades below 8251 levels & expecting targets in the range 7700-7680 levels in short term. Medium term outlook for the market remains negative till Nifty trades below 8737 levels & expecting targets in the range of 7600-7300-7000 levels in medium term.
Markets remain volatile ahead of major events next week particularly of RBI Monetary policy meet & FED meet. 8000 & 8300 looks strong support & resistance levels respectively for short term based on derivative option open interest data. Break of 8000 levels on nifty will lead to sharp fall towards lower levels targets in short term.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatility in short term ahead of major events next week. One should use any kind of consolidation or rise to sell stock specific till short term reverses. Sustain above short term reversal levels will only confirm extension of pull back rally further rally towards 8330-8430 levels in near term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.
Stock Picks:
TATA MOTOR- SELL
CLOSE- Rs 434
Target- Rs 380
TATA MOTOR closed weekly in negative territory. Its looks like extension of correction further after short term consolidation. Its weekly momentum indicators are in sell. One can SELL with SL-468 for the target of 380 in short term.
INDUSIND BANK-SELL
CLOSE-Rs 1,066
Target-Rs 1,030/1,000
INDUSIND BANK closed weekly in negative territory. Its looks like end of short pull back rally. It closed below 20 DMA. Risk reward is favourable to SELL at current levels. One can SELL with SL-1103 for the target of 1030/1000 in short term.
SBI –SELL
CLOSE-Rs 255
Target-Rs 235/225
SBI closed weekly in negative territory. It looks like end of short term pull back rally. Risk reward is favourable to SELL at current levels. One can SELL with SL-270 for the target of 235/225 in short term.
TATA COMMUNICATIONS –SELL
CLOSE-628
Target-590/560
TATA COMMUNICATIONS closed weekly in negative territory. It looks like end of short term pull back rally. Its weekly momentum indicators are in SELL. Risk reward is favourable to SELL at current levels. One can SELL with SL-667 for the target of 590/560 in short term.
Devang Shah: The author of www.trendtechno.com (Trade with Trend)
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.