Short-term outlook for the market remains positive: Buy Godrej Industries

NIFTY      

CLOSE- 10794.95  (11.01.2019)

The market closed weekly in positive territory. Its further consolidated in a narrow range for the entire week. It’s still trading in a broad range of 10500-11000 levels from one month. One should watch out market behavior near these crucial levels. Able to break this range on the upside will finally confirm the trend towards higher levels targets as mentioned below in short term. 

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 in the recent rally. It closed weekly in positive territory. Its good sign at current levels of the market for medium to long term trend of the market as mentioned last week. Risk reward is favorable to BUY stock specific at current levels of the market.

The short-term outlook for the market remains positive till Nifty trades above 10534 levels and expecting targets in the range of 11000-11300 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.

It may further remain in a broad range between 10000-11000 levels on nifty for some more time in the short term before giving a breakout on the upside. One should closely watch out the upper end of the range at the current level of the market for further confirmation of the same.

BANK NIFTY also closed weekly in positive territory. It also traded in a narrow range for the week. It consolidating in a narrow range of 26400-27500 levels for short term. Able to break this range on the upside will finally confirm the trend towards higher levels targets. 26400 is strong support for short term till it holds one can expect higher levels targets till 28500 levels for 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 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.

Momentum indicators Daily KST is in BUY & DAILY MACD both are in sell indicating a 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 10400/10200 levels on nifty & 34672/34000 levels on Sensex in short term.

Stock Picks: 
 

CUMMINS – BUY

CLOSE – Rs 842

TARGET – Rs 880-910

CUMMINS closed in positive territory. It’s outperforming in short term. It managed to hold crucial support of 20 DMA. Its weekly momentum indicators are in BUY. One can buy with a stop loss of Rs 792 for the target of 880/910 levels in short term.

CONCOR – BUY

CLOSE – Rs 677

TARGET – Rs 698/720

CONCOR closed weekly in negative territory. It is outperforming in short term. It managed to hold 20DMA. 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 655 for the target of 698/720 levels in short term.

GODREJ IND – BUY

CLOSE – Rs 535

TARGET – Rs 565-580

GODREJ IND closed the weekly in negative territory. It’s trading in a narrow range in short term. Risk reward is favorable to buy at current levels. Its weekly momentum indicators are in BUY. One can buy with a stop loss of Rs 510 levels for the target of 565-580 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.