Short-term outlook for market looks positive; Buy Axis Bank, Granules India

NIFTY      

CLOSE- 10553 (02.11.2018)

The market closed weekly in positive territory & as expected we got sharp pullback rally from the recent bottom near from medium-term reversal levels. It made a low of 10004.55 levels on nifty & 33,291.58 levels on Sensex in recent correction. We have seen the impulsive advance structure from this bottom finally indicating end of wave-IV short-term correction. One can expect market to trend towards higher levels targets as mentioned below in short to medium term till it reverses. 

We have seen sharp pullback rally from medium-term support levels. It looks like high possibility of end of wave-IV correction across the board. We can expect higher levels targets in short to medium term. Risk reward is favourable to BUY stock specific at current levels. 

The short-term outlook for the market remains positive till Nifty trades above 9950 levels and expecting targets in the range of 11100-11400 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 also closed weekly in positive territory. It also looks like end of wave-IV short-term correction on bank nifty as per chart attached. 24200 levels is strong support on Bank Nifty, till it holds one can expect higher levels targets till 27000-27500 levels in short term. 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.

10000/10200  & 11000 levels is strong support & resistance levels respectively based on option open interest data for current month series. 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. We have seen broader market participation in recent rally from bottom; it’s a very good sign & also an indication of final end of short-term correction.

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.

Stock Picks: 

AXIS BANK – BUY

CLOSE – Rs 617

TARGET – Rs 650/680

Axis Bank closed the weekly in a positive territory. It looks like end of short-term correction. Risk reward is favorable to buy at current levels. It has wave-V Up pending on the upside. Its momentum indicators on daily charts are in BUY. One can buy with a stop loss of Rs 570 for the target of 650/680 levels in short term.

JAIN IRRIGATION – BUY

CLOSE – Rs 74.90

TARGET – Rs 80/84

Jain Irrigation closed the weekly in a positive territory. It looks like end of medium-term correction. 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 68 for the target of 80/84 levels in short term.

GRANULES INDIA – BUY

CLOSE – Rs 100.6

TARGET – Rs 107/111

Granules India closed the weekly in a positive territory. It’s 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 94 for the target of 107/111 levels in short term.

AMARRAJA BATTERY – BUY

CLOSE – Rs 797

TARGET – Rs 830

AMARRAJA BATTERY closed the weekly in a positive territory. It’s 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 750 for the target of 830 levels in short term.

BEL – BUY

CLOSE – Rs 95.45

TARGET – Rs 100-105

BEL closed the weekly in a positive territory. It looks like end of medium-term correction. 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 89 for the target of 100-105 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.