 "Nifty can hit 9,120 levels in the short-term: Devang Shah")
NIFTY
CLOSE- 8809.65 (02.09.16)
Nifty closed weekly in positive territory, and finally managed to broken out of consolidation range of last 5-6 weeks on upside as expected last week. It made a high of around 8,827 levels. Short-term targets levels range around 8,800-8,850 levels as expected last week. One should watch out market behaviour around these levels. A close above 8,850 will further confirm a rally towards higher levels.
Short-term outlook for the market remains positive. As long as the Nifty trades above 8,543 levels, we expect a target of 9,120 levels in the short-term. Medium-term outlook for the market also remains positive till the Nifty trades above 7,927 levels. We expect it to scale up to 9400 levels in the medium-term.
Midcap & small cap indices & stocks are out performing at current levels of market. Particularly, NSE MIDCAP & BSE SMALL CAP indices are nearing all-time high levels. These indices are at the verge of breakout after 8 years, as written earlier as well. It’s very strong sign at current levels of market indicating midcap & small cap stocks continue to outperform in the rally ahead. One should BUY selected good stocks from these segments to take the advantage of this rally ahead.
I wound recommend to remain invested from medium-to-long term perspective in these markets, and use any kind of decline or consolidation to BUY.
Momentum indicators Daily KST & DAILY MACD both are in BUY showing strength supporting short term view. One should be stock specific & follow trend till it reverses in short term.
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ADANI PORT-BUY
Close-Rs 269
Target-Rs 280/300
ADANI PORT is outperforming in short term. It looks like end of short term consolidation. It managed to hold 40 DMA. Risk reward is favourable to BUY at current levels. One can BUY with SL-Rs 248 for the target of Rs 280/300 levels in short term.
M&M-BUY
CLOSE-Rs 1470
Target-Rs 1520/1550
M&M is outperforming in short term. It’s managed to hold 40 DMA. It looks like end of short term consolidation. Risk reward is favourable to BUY at current levels. One can BUY with SL- Rs 1406 for the target of Rs 1520/1550 in short term.
IRB INFRA-BUY
CLOSE-Rs 230
Target-Rs 240/250
IRB INFRA is outperforming in short term It’s closed above 20 DMA. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL- Rs 220 for the target of Rs 240/250 in short term.
BHARAT FORGE-BUY
CLOSE-Rs 874
Target-Rs 970
BHARAT FORGE is outperforming in short term. It closed weekly in positive territory. It’s still holding 20 DMA. Risk reward is favourable to BUY at current levels. One can BUY with SL- Rs 827 for the target of Rs 970 in short term.
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The author is Portfolio Manager- PRO TECH-PMS at Sharekhan
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.