 "One should use correction or consolidation to buy: Devang Shah")
NIFTY
CLOSE- 8779.85 (16.09.16)
Market halted positive momentum & closed weekly in negative territory at the end of weekly trading session. It made a high of around 8968 levels. It witnessed profit booking near from these levels as expected last week. It looks like phase of wave-IV short term correction or consolidation till short term reverses. One should use this correction or consolidation to BUY for wave-(V) higher levels targets in medium term.
BANK NIFTY also closed weekly in negative territory. It also looks like phase of wave-(IV) short term correction or consolidation. 20,650 looks strong resistance for short term & expect targets of around 19000-19100 levels in this short term corrective phase.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. 8500/8600 looks strong support & 8900/9000 Resistance levels respectively based on derivative option open interest data so far in short term. Market may trade in range of 8600-8900 levels in short term before further trend emerge for higher levels targets. Sustain above short term reversal levels will confirm further rally towards 9120-9200 levels in near term. One should be stock specific & follow trend till it reverses in short term. Any kind of decline is an opportunity to BUY stock specific for medium term perspectives.
Stock Picks:
BPCL-BUY
Close- Rs 576
Target- Rs 610/ Rs 640
BPCL is outperforming in short term it’s trading above 40DMA. It’s consolidating in thin range in short term in this wave-IV correction. It has wave-V up pending. Risk reward is favourable to BUY at current levels. One can BUY with stop loss at Rs 550 for the target of Rs 610/ Rs 640 in short term.
LIC HOUSING-BUY
CLOSE- Rs 570
Target- Rs 600/ Rs 630
LICHSG is outperforming in short term it’s trading above 40DMA. Its looks like wave-IV correction. It has wave-V up pending. Risk reward is favourable to BUY at current levels. One can BUY with stop loss at Rs 535 for the target of Rs 600/ Rs 630 in short term
PNB-BUY
CLOSE- Rs 138
Target- Rs 155
PNB is outperforming in short term it’s closed above 20 DMA. It’s momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with stop loss at Rs 129 for the target of Rs 155 in short term.
BALRAMPUR CHINI -BUY
CLOSE- Rs 107
Target- Rs 115/ Rs 120
BALRAMPURCHNINI closed weekly in positive territory. It looks like end medium term correction. Its daily momentum indicators are in buy. Risk reward is favourable to BUY at current levels. One can BUY with stop loss at Rs 100 for the target of Rs 115/ Rs 120 in short term.
The author is Portfolio Manager- PRO TECH-PMS at Sharekhan
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.
CLOSE- 8779.85 (16.09.16)
Market halted positive momentum & closed weekly in negative territory at the end of weekly trading session. It made a high of around 8968 levels. It witnessed profit booking near from these levels as expected last week. It looks like phase of wave-IV short term correction or consolidation till short term reverses. One should use this correction or consolidation to BUY for wave-(V) higher levels targets in medium term.
BANK NIFTY also closed weekly in negative territory. It also looks like phase of wave-(IV) short term correction or consolidation. 20,650 looks strong resistance for short term & expect targets of around 19000-19100 levels in this short term corrective phase.
More From This Section
Short term outlook for the market remains negative till nifty trades below 8970 levels & expecting targets in the range of 8650-8540 levels in this short term correction. Medium term outlook for the market remains positive till nifty trades above 8294 levels & expecting targets in the range of 9400-9700-10000 levels in medium term.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. 8500/8600 looks strong support & 8900/9000 Resistance levels respectively based on derivative option open interest data so far in short term. Market may trade in range of 8600-8900 levels in short term before further trend emerge for higher levels targets. Sustain above short term reversal levels will confirm further rally towards 9120-9200 levels in near term. One should be stock specific & follow trend till it reverses in short term. Any kind of decline is an opportunity to BUY stock specific for medium term perspectives.
Stock Picks:
BPCL-BUY
Close- Rs 576
Target- Rs 610/ Rs 640
BPCL is outperforming in short term it’s trading above 40DMA. It’s consolidating in thin range in short term in this wave-IV correction. It has wave-V up pending. Risk reward is favourable to BUY at current levels. One can BUY with stop loss at Rs 550 for the target of Rs 610/ Rs 640 in short term.
LIC HOUSING-BUY
CLOSE- Rs 570
Target- Rs 600/ Rs 630
LICHSG is outperforming in short term it’s trading above 40DMA. Its looks like wave-IV correction. It has wave-V up pending. Risk reward is favourable to BUY at current levels. One can BUY with stop loss at Rs 535 for the target of Rs 600/ Rs 630 in short term
PNB-BUY
CLOSE- Rs 138
Target- Rs 155
PNB is outperforming in short term it’s closed above 20 DMA. It’s momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with stop loss at Rs 129 for the target of Rs 155 in short term.
BALRAMPUR CHINI -BUY
CLOSE- Rs 107
Target- Rs 115/ Rs 120
BALRAMPURCHNINI closed weekly in positive territory. It looks like end medium term correction. Its daily momentum indicators are in buy. Risk reward is favourable to BUY at current levels. One can BUY with stop loss at Rs 100 for the target of Rs 115/ Rs 120 in short term.
The author is Portfolio Manager- PRO TECH-PMS at Sharekhan
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.