Short-term outlook for market looks positive; Buy CEAT, BATA

NIFTY      

CLOSE- 10876.75  (30.11.2018)

The market closed weekly in positive territory. It has broken out of consolidation range on the upside as expected last week. It has achieved my first short-term target of 10900 levels near recent high as expected last week. It has started wave-iii if I of 5 in short term. One can expect the market to trend towards higher levels targets as mentioned below in short to medium term till it reverses. 

Broader market such as midcap & small indices are still underperforming at current levels, its sign of worry but main indices such as Nifty & Sensex etc. are slow & steady extending on the upside. One should closely watch out broader market behaviour in short-term for further confirmation of the medium-term trend. One can’t rule out profit booking from higher levels. Any kind of profit booking or consolidation or decline is buying opportunity for medium to long-term perspectives till medium term 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 10489 levels and expecting targets in the range of 11100-11300 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’s outperforming in short term. It’s also slow & steady extending on the upside.  It has achieved my short-term target of 26800 levels near recent high as expected last week. It has made a high of 27034.50 levels in short term. 25900 levels is strong support on Bank Nifty, till it holds one can expect further extension for higher levels targets till 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.

10500 & 11000 levels is strong support & resistance levels respectively based on option open interest data for expiry perspectives next week. The market is going to remain volatile ahead of many events this month. Momentum indicators Daily KST went in to SELL but DAILY MACD is still in BUY indicating a volatile trend in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.

Stock Picks: 

CEAT – BUY

CLOSE – Rs 1262.80

TARGET – Rs 1360/1450

CEAT closed the weekly in positive territory. Its consolidating in a narrow range in short term. Risk reward is favorable to buy at current levels. Its momentum indicators on weekly charts are in BUY. It’s able to hold support of 20 DMA. One can buy with a stop loss of Rs 1140 for the target of 1360/1450 levels in short term.

BATA – BUY

CLOSE – Rs 1037

TARGET – Rs 1075/1100

BATA closed the weekly in a positive territory. It’s outperforming in short term. It’s able to hold20 DMA. 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 970 for the target of 1075/1100 levels in short term.

PIDILITE – BUY

CLOSE – Rs 1163

TARGET – Rs 1200/1220

PIDILITE closed the weekly in a positive territory. It’s outperforming in short term. It has wave-V up pending on the daily chart. 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 1109 for the target of 1200/1220 levels in short term.

FEDERAL BANK – BUY

CLOSE – Rs 85.25

TARGET – Rs 88/91

FEDERAL BANK closed the weekly in a positive territory. It’s outperforming in short term. It has broken out of short-term consolidation range on the upside. Its daily momentum indicators are in BUY. Risk reward is favorable to buy at current levels. It’s trading above 20 DMA. One can buy with a stop loss of Rs 80 for the target of 88/91 levels in short term.

CUMMINS – BUY

CLOSE – Rs 805

TARGET – Rs 845/875

CUMMINS closed the weekly in a positive territory. It’s outperforming in short term. Its able to hold crucial support of 20 DMA. Its weekly momentum indicators are in BUY. Risk reward is favorable to buy at current levels. One can buy with a stop loss of Rs 740 for the target of 845/875 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.