Nifty can hit 9,550 levels: Devang Shah

Nifty outlook and stock picks from Devang Shah for today's session

NIFTY           
CLOSE- 9,313.80 (02.05.17)
 
Market managed to found support particularly on main indices NIFTY/SENSEX at lower end of range near recent lows & closed weekly in positive territory. It looks like possibility of END of TIME WISE short term consolidation in preceding last two weeks. It made a low of 9075 levels on nifty & 29241 levels on Sensex last week. After holding these supports, it started to extend further on upside as expected. All the other indices also closed weekly in positive territory. One should expect market to trend towards higher levels targets till it reverses.
 
Short term wave counts are differing but DOW THEORY is working well to RIDE this kind of extended rally as mentioned many times earlier in my weekly updates. One should Trail this rally till DOW THEORY supports holds. It can be beginning of wave-III or extended move is still going on as per short term wave counts daily chart  but conclusively overall trend is still UP till it reverses in short term.

 

Short-term outlook for the market remains positive till Nifty trades above 9,075 levels and is expecting target of 9,550 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.
 
BANK NIFTY closed weekly in positive territory. It’s outperforming in short term. It’s also showing sign of extension in short term. 21,380 is strong support for bank nifty in short term till it holds one can expect further higher level targets till 23,370-23,400 levels in short term. Both possibility of wave counts indicating bullish possibility in short term trend.

 
9000- 9500 levels in strong support & Resistance levels respectively on nifty based on derivative option open interest data for current month series. Any kind of short term correction or consolidation is 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 BUY supporting short term view. 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 8,860 levels on Nifty & 28,700 levels on Sensex in short term.

 
Stock Picks:
 
VEDANTA -BUY
CLOSE - Rs 241.90
TARGET – Rs 258
 
VEDANTA closed the week in a positive territory. It looks like end of short term correction. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs-230 for the target of 258 levels in short term.
 
M&M- BUY
CLOSE- Rs 1,342.35
TARGET – Rs 1,390-1450
 
M&M 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 1290 for the target of Rs 1390-1450 levels in short-term.

 
ADANI PORTS -BUY
CLOSE- Rs 330
TARGET – Rs 345-360
 
ADANI PORTS closed daily in positive territory. It closed above 40 DMA. Risk reward is favourable to BUY at current levels. One can BUY with SL-315 for the target of 345-360 in short term.
 
TATA MOTORS - BUY
CLOSE – Rs 451
TARGET- Rs 475
 
TATA MOTORS closed weekly in negative territory. Its looks like end of short term correction.  Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-437 for the target of 475 in short term.

 
NIIT TECH - BUY
CLOSE-Rs 466
TARGET – Rs 480-510
 
NIIT TECH closed weekly in negative territory. It has broken out of short term consolidation on upside. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-432 for the target of 482-510 in short term.
 
Disclaimer: Devang Shah is 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.