Short-term outlook for market looks positive; Buy Asian Paints, Tata Global

NIFTY      

CLOSE- 10754  (21.12.2018)

The market closed surprisingly weekly in negative territory. We have seen a sharp decline beyond anticipation from the higher levels at the end of weekly trading session. It has almost achieved my first short-term target of 11000 levels on nifty near recent high as expected last week. It made a high of 10985.15 levels during the week. It witnessed sharp profit booking around from these levels. It closed near crucial support zone at the end of weekly trading session. It is still trading in the broad range of 10300-11000 levels from last 2 months. One can expect the market to trend towards higher levels targets as mentioned below in short to medium term till it reverses. Any kind of decline towards the lower end of the range is stock specific buying opportunity from short to medium term perspectives. 

Short term wave count is still not conclusive or keep on varying but overall medium-term wave counts is indicating an ongoing correction is buying opportunity from medium to long-term perspectives. We have seen the beginning of a broader market (Midcap/Small cap indices) participation this week as well. It closed weekly in positive territory & remained outperformer during the week. Its good sign at current levels of the market for medium to the long-term trend of the market as mentioned last week. Risk reward is favourable to BUY stock specific at current levels of the market.

The short-term outlook for the market remains positive till Nifty trades above 10333 levels and expecting targets in the range of 11170-11450 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9951 levels and expecting targets in the range of 12500-12800 levels in the medium term.

BANK NIFTY closed weekly in positive territory. It also witnessed profit booking from higher levels at the end of weekly trading session.

 It made a high of 27425 levels during the week. 25700 levels is strong support for the short term. One can expect higher levels targets till 28500 levels in short-term till this support level holds. 23600 levels is strong support on bank nifty from medium-term perspectives till it holds one can expect higher levels targets in the range of 30000-32000 levels in the medium term.

10500 & 11000 levels is strong support & resistance levels range respectively based on option open interest data for expiry perspectives next week. Any kind of such short-term correction or consolidation is buying stock specific opportunity for medium to long-term Investment perspectives till medium term reverses.

Momentum indicators Daily KST went in to SELL but DAILY MACD is still in BUY indicating the volatile trend in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close or sustain below short-term reversal levels will lead to correction till 10000-9950 levels on nifty & 33291/32483 levels on Sensex in short term.

Stock Picks: 

ASIAN PAINTS – BUY

CLOSE – Rs 1387.80

TARGET – Rs 1445-1460

ASIAN PAINTS closed the weekly in positive territory. It is outperforming in short term. Risk reward is favorable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 1334 for the target of 1445/1460 levels in short term.

TATA GLOBAL – BUY

CLOSE– Rs 215.30

TARGET– Rs 225

TATA GLOBAL closed the weekly in positive territory. It looks like the end of medium-term correction. It managed to hold 40DMA. Risk reward is favorable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 208 for the target of 225 levels in short term.

PETRONET– BUY

CLOSE– Rs 222.60

TARGET – Rs 235

PETRONET closed the weekly in positive territory. It looks like the end of medium-term correction. It managed to hold 40DMA. Risk reward is favorable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 211 for the target of 235 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 scripts mentioned above.