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

Recommends buying IOC, BOI, HeroMoto Corp, Adani Ports and CESC

NIFTY: CLOSE-9915.25 (22.07.17)
 
Market consolidated in narrow range for the entire week & closed 3rd consecutive week in positive territory. It made a high of 9,928.20 levels on Nifty & 32,131.920 levels on Sensex so far in this rally. It consolidated during the week before trending towards short term targets levels range & also physiological level of 10,000 on Nifty. One should expect market to trend towards higher levels targets till short term reverses.
 
As market is extending without any major retracement on down side, it looks like, it can stretch further more till 10,300/10,400 levels on Nifty till it holds crucial support of 9,550-9,600 levels on Nifty in this rally (i.e. lower end of channel as per chart attached) before any major correction. But short-term trader should be stock specific & start to book profit in trading positions at higher levels.

 

Short-term outlook for the market remains positive till Nifty trades above 9,448 levels and is expecting target in the range of 10,100-10,400 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 12,000-12,200 levels in medium term.
 
9,800- 10,000 levels in strong support & Resistance levels respectively on Nifty based on derivative option open interest data for expiry perspectives next week. Any kind of decline or short term consolidation is buying opportunity for medium to long term perspectives till medium term reverses.

 
Nifty Bank closed third consecutive week in positive territory. It’s trending in channel as per daily chart attached. It has strong support around 22,400 levels till it holds one can expect targets of around 25,000-25,100 levels in short term. It has strong support around 20,649 levels till it holds one can expect higher levels targets till 27,000 levels in medium term.
 
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 from trading perspectives. Close below short term reversal levels will lead to possible sharp price wise correction till 9,270/9,000 levels on nifty & 29,800/29,200 levels on Sensex in short term.

 
Stock Picks:
 
HERO MOTO CORP – BUY
CLOSE – Rs 3679.65
TARGET – Rs 3900-3950
 
HERO MOTO CORP closed the weekly in a negative territory. It’s still consolidating in narrow range in short term. It has still wave-V up pending based on weekly chart. Risk reward is favourable to buy at current levels. One can buy with a stop loss of Rs 3600 for the target of 3900-3950 levels in short term.
 
CESC - BUY
CLOSE – Rs 899
TARGET – Rs 968-1000
 
CESC closed weekly in positive territory. It looks like end of medium term correction. It has still wave-V up pending on monthly chart. Its momentum indicators are in BUY. Risk reward is favourable to buy at current levels. One can buy with stop loss of 860 for the target of 968-1000 levels in short term.

 
ADANI PORTS - BUY
CLOSE – Rs 381.35
TARGET – Rs 391-395
 
ADANI PORTS closed weekly in negative territory. It’s consolidating in narrow range in short term. Its showing sign of extension in short term. Risk reward is favourable to buy at current levels. One can buy with stop loss of 374 for the target of 391-395 levels in short term.
 
BANK OF INDIA - BUY
CLOSE – Rs 154.80
TARGET – Rs 163
 
BOI closed weekly in positive territory. Its showing sign of extension in short term. It still holds support of 20 DMA. Risk reward is favorable to buy at current levels. One can buy with stop loss of 150 for the target of 163 levels in short term.

 
INDIAN OIL - BUY
CLOSE – Rs 380.40
TARGET – Rs 392
 
IOC closed weekly in positive territory. It managed to hold crucial support of 200 DMA. Risk reward is favourable to buy at current levels. One can buy with stop loss of 369 for the target of 392 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.