Nifty outlook and four stocks picks by Devang Shah for today's trade

NIFTY

CLOSE- 9285.30 (05.05.17)

Nifty closed the week in a negative territory. It consolidated in narrow range for the entire week. It made a high of 9377.10 levels during week. It witnessed profit booking at the end of week and closed below 9300 levels at the end of the week. All the other indices closed the week in positive territory.

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 supports holds. It can be beginning of wave-III or extended move is still going on as per short term wave counts on the 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 9075 levels and is expecting target of 9550 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.

Nifty Bank closed the week in positive territory. It is outperforming in short term. It’s also showing sign of extension in short term. 21380 is strong support for the Bank Nifty in short-term till it holds. One can expect further higher level targets till 23370-23400 levels in short term. Both possibility of wave counts is indicating bullish possibility in the short term trend.

9000- 9500 is in strong support and Resistance levels respectively based on derivative option open interest data for the 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 went in to SELL BUT & DAILY MACD is still 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 8860 levels on Nifty and 28700 levels on Sensex in short term. 

Stock Picks:

PETRONET LNG- BUY
 

CLOSE: Rs 429.60

Target: Rs 440-455

PETRONET LNG closed the week in a positive territory. It looks like end of short-term correction. 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 415 for the target of Rs 440 455 levels in short term.

PNB- BUY
 

CLOSE: Rs 174.30

Target: Rs 185-194

PNB 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 162 for the target of Rs 185-194 levels in short-term.

ADANI PORTS - BUY
 

CLOSE: Rs 344.95

Target: Rs 360-368

ADANI PORTS closed the week in positive territory. It is outperforming in short-term. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 323 for the target of Rs 360-368 in short-term.

PIDILITE INDUSTRIES - BUY
 

CLOSE: Rs 740.20

Target: Rs 770-790

PIDILITE INDUSTRIES closed the week in positive territory. It’s outperforming in short term. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with a stoploss of Rs 716 for the target of Rs 770-790 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.