Nifty outlook and top trading ideas by Devang Shah for today

The short-term outlook for the market remains positive till Nifty trades above 10,929 levels, says Devang Shah

NIFTY      

CLOSE- 11557.10 (24.08.2018)

The market closed the 5th consecutive week in positive territory. It has achieved my short term targets levels near recent high as expected. It made a high of 11,620.70 levels on Nifty & 38,487.63 levels on Sensex during the week. It looks like extension case further as per short-term wave count chart. Any kind of short-term consolidation or correction is stock specific buying opportunity till short-term reverses.

The broader market such as midcap & small cap indices remained outperformer & closed weekly in positive territory. It is slow & steady extending on the upside as expected. Broader market will catch up with main indices with faster face in the rally ahead. One should still find out an opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long-term perspectives. As expected, BSE500 is the 4th indices to make new all-time high this week & join the bull market party with Sensex/Nifty & Bank Nifty. I feel rest of the indices such as Midcap & Small cap indices is also going to surpass All time high soon in coming months & this rally will have time wise consolidation rather than price wise correction in short term.

The short-term outlook for the market remains positive till Nifty trades above 10,929 levels and expecting targets in the range of 11,750- 11,800 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9,951 levels and expecting targets in the range of 12,500-12,800 levels in the medium term.

BANK NIFTY closed weekly in negative territory. It consolidated in a narrow range during the week. It made a high 28,386 levels so far in the rally. 26,926 levels is strong support for bank nifty for short term, till it holds one can expect higher levels targets in the range of 28,800-29,800 levels in short term. 26,000 levels is crucial support for bank nifty from medium-term perspectives until it holds one can higher levels targets till 32,800-33,000 levels on Bank Nifty as per monthly chart attached here. 

11,400/11,500 & 11,600/11,700 levels is strong support & resistance levels respectively based on option open interest data for expiry perspectives next week. Any kind of such 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 went in to sell indicating volatility in short-term ahead of expiry next week. 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 sharp correction till 10,500-10,400 levels on Nifty & 34,900-34,300 levels on Sensex in short term.

Stock Picks: 

DHFL - BUY

CLOSE –  Rs 655.50

TARGET – Rs 700-740

DHFL closed the weekly in negative territory. Its consolidated in a narrow range during the week. Its daily momentum indicators are in BUY. It is trading above 20DMA. One can BUY with a stop loss of Rs-626 for the target of Rs 700-740 levels in short-term. 

POWER GRID - BUY

CLOSE –  Rs 190.20

TARGET – Rs 198-205

POWER GRID closed the weekly in positive territory. It looks like the end of short-term correction. It managed to hold 20 DMA. 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-185 for the target of Rs-198-205 levels in short-term. 

L&T - BUY

CLOSE –  Rs 1342.60

TARGET – Rs 1380-1400

L&T closed the weekly in positive territory. It looks like the end of short-term correction. Its daily momentum indicators are in BUY. It closed above 20DMA. One can BUY with a stop loss of Rs-1280 for the target of Rs-1380-1400 levels in short-term.

LUPIN - BUY

CLOSE –  Rs 906

TARGET – Rs 940-980

LUPIN closed the weekly in positive territory. Its daily momentum indicators are in BUY. Its trading above 20DMA. One can BUY with a stop loss of Rs-850 for the target of Rs 940-980 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;