Nifty outlook and stock recos for today's trade by Devang Shah

Recommends buying Godrej Industries, Ajanta Pharma, Tata Power, Tata Chemicals, Bharat Financial and Sun TV

NIFTY     
CLOSE- 10389.70 (24.11.17)
 
Nifty closed 2nd consecutive week in positive territory. It’s slow but steady heading towards higher levels with some consolidation in short term. It made a high of 10404.50 levels during week & closed nearer to it at the end of weekly trading session. It looks like extension case further towards upper end of channel as anticipating from wave count perspectives  till lower end support holds. One can expect market to rally towards higher levels targets as mentioned below till short term reverses. Trader should BUY stock specific & book profit at regular intervals.
 
Short-term outlook for the market remains positive till Nifty trades below 10,094 levels and expecting target of 10,600-10,800 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and is expecting targets in the range of 12,000-12,200 levels in medium term.

 

Although it looks like very high levels both from technical (Extended Rally)   & fundamental perspectives (Valuation wise) but many stocks are giving fresh breakouts from long consolidation And some of the stocks that completed medium term correction is started to participate in this rally further. Therefore, it’s advisable to be stock specific at current levels with proper risk management approach.
 
I have drawn channel on both Nifty & Sensex weekly charts. It looks like high possibility of extension of this rally till upper end of channel as per weekly chart towards revised short term targets levels as mentioned earlier. In typical such kind of bull market normally wave-3 completes & touches upper end of channel before any kind of major price wise correction. It looks like high possibility to me at current levels of market till short term reverses. It will become strong fast & furious rally in this phase of market.

 
Nifty Bank is relatively outperforming at current levels of market. It broke out of short term consolidation range. It also closed weekly in positive territory. It also looks like extension case from wave count perspectives. It has strong support at 25,200 levels, till it holds one can expect rally towards 26,900-27,000 levels in short term.  It looks like bank nifty to lead in this rally further in short term. One should buy selected stocks form banking sector to take advantage of this rally.
 
10200-10300 levels is strong support & 10,500 levels is strong resistance levels respectively based on option open interest data for expiry perspectives next week. Any kind of short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.

 
Momentum indicators Daily KST & daily MACD both are in BUY supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to price wise short term correction towards 9680 levels on nifty & 31081.83 levels on Sensex in short term.
 
Stock Picks:  
 
GODREJ INDUSTRIES -BUY
CLOSE – Rs- 561
TARGET – Rs 580-595 
 
Godrej Industries closed the week in a positive territory. It looks like end of short term consolidation. Risk reward is favourable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 548 for the target of Rs 580-595 in short-term. 

 
AJANTA PHARMA- BUY
CLOSE – Rs 1328
TARGET – Rs 1370-1400
  
Ajanta Pharma closed the weekly in a positive territory. It has wave-V up pending on daily chart. Risk reward is favourable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 1276 for the target of Rs 1370-1400 in short-term.
  
BHARAT FINANCIAL - BUY
CLOSE – Rs 988
TARGET – Rs 1020-1070
 
Bharat Financial closed the weekly in a positive territory. It has completed short term correction. It managed to hold crucial support of 40-DMA. It has broken out of triangular kind of short term consolidation pattern. Risk reward is favourable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 958 for the target of Rs 1020-1070 in short term.

  
TATA POWER- BUY
CLOSE – Rs 93.55
TARGET – Rs 103-110
  
Tata Power closed weekly in positive territory. It has broken out of short term consolidation. It shows sign of extension in wave-III as per daily chart. Its momentum indicators are in BUY. Risk reward is favourable to buy at current levels. One can buy with stop loss of 88 for the target of 103-110 levels in short term.
  
TATA CHEMICALS - BUY
CLOSE – Rs 742.10
TARGET – Rs 775-800
  
Tata Chemicals closed weekly in positive territory. It’s showing sign of extension I wave-V. It’s trading above crucial support of 20 DMA. Risk reward is favourable to buy at current levels. One can buy with stop loss of 700 for the target of 775-800 levels in short term.

  
SUN TV- BUY
CLOSE – Rs 873.65
TARGET – Rs 910-930
  
Sun TV closed weekly in positive territory. It has completed short term consolidation. It’s trading above crucial support of 20 DMA. Risk reward is favourable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with stop loss of 830 for the target of 910-930 levels in short term. 
 
Devang Shah: The author of www.trendtechno.com (Trade with Trend) and an independent market analyst
 
Disclaimer: The analyst may / may not have a position in the scrips mentioned above