Nifty expected to trade in 9,300-9,465 zone in short-term, says Devang Shah

All the other indices such as Nifty Bank, Midcap & Smallcap Indices are out-performing in short-term

NIFTY
 

CLOSE- 9150.80 (13.04.17)

Nifty failed to extend further and consolidated in a narrow range for the entire week. It traded in channel as per hourly chart for the entire week. Main indices Sensex/Nifty closed the week in a negative territory. All the other indices such as Nifty Bank, Midcap & Smallcap Indices are still out performing in the short-term. Although main indices are showing loss of momentum on daily chart but one needs to watch out price reversal to finally conclude short term reversal until one expects higher levels targets as mentioned below in the short-term. 

All the other indices such as Nifty Bank, Midcap & Smallcap Indices are out performing in the short-term. It is a good sign at current levels of market supporting short-term view. One needs to also watch out the movement on these indices as a further evidence on any kind of short-term trend reversal.

Short-term outlook for the market remains positive till Nifty trades above 9,020 levels and is expecting targets in the range of 9,300-9,390-9,465 levels in the 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 the medium term.

It still looks like extended wave on daily chart of main indices such as Nifty/Sensex as per chart attached. Although FII data is showing long unwinding positioning in futures market and is also showing selling figure in cash market as profit booking for this week, is slightly showing weakness but one needs to watch out short-term reversal for final confirmation of trend reversal. 

Bank Nifty is still outperforming in short term as per daily chart attached. 20,800 is strong support for the index in short-term. One can expect revised higher levels target of around 22800 as per daily chart attached in short-term till it reverses

9,000/9,300 levels in strong support & resistance levels respectively on nifty based on derivative option open interest data for short term. Any kind of short term correction or consolidation will be a buying opportunity for medium to long-term investor. One can expect higher levels targets in medium to long-term.

Momentum indicators Daily KST & daily MACD both are in SELL indicating weakness but 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 8860 levels on nifty & 28700 levels on Sensex in the short-term. 

Stock Picks:

EXIDE: BUY
 

CLOSE: Rs 227.20

Target: Rs 233-237

EXIDE closed the week in a positive territory. It’s closed above 20-DMA. Its weekly momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs 222 for the target of Rs 233-237 levels in short term.

PIDILITE- BUY
 

CLOSE: Rs 711.85

Target: Rs 728-745

PIDILIE closed the week in a positive territory. It’s outperforming in short-term. It closed above 20-DMA. Risk reward is favourable to BUY at current levels. Its momentum indicators are in BUY. One can BUY with a stop loss of Rs 690 for the target of Rs 728-745 levels in short-term.

PETRONET LNG -BUY
 

CLOSE: Rs 425.10

Target: Rs 435-445

PETRONET LNG closed weekly in positive territory. Its momentum indicators are in BUY. It closed above 20-DMA. It’s outperforming in short term. Risk reward is favourable to BUY at current levels. One can BUY with a SL of Rs 414 for the target of Rs 435-445 in short-term.

GODREJ INDUSTRIES-BUY
 

CLOSE: Rs 527.85

Target: Rs 550

GODREJ INDUSTRIES closed the week in negative territory. It closed above 20-DMA. Its weekly momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL of Rs 515 for the target of Rs 550 in short-term.

BHARATFORGE-BUY
 

CLOSE: Rs 1080

Target: Rs 1200

BHARAT FORGE closed the week in positive territory. It is outperforming in short-term. It’s showing sign of extension in short term. It has consolidated in narrow range for the entire week. Its daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with a SL of Rs 1040 for the target of Rs 1200 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.