Short-term outlook for the market remains positive: Devang Shah

10,400-10,500 & 10,700 levels are strong support & resistance levels range respectively, says Devang Shah

NIFTY     
CLOSE- 10564.05 (20.04.2018)
 
Market closed 4th consecutive week positive territory. It slow but steady extending on upside towards short term targets levels range as expected last week. Its consolidated in narrow range during week. It made a high of 10,580.30 levels during week. It closed near high at the end of weekly trading session. Its trading in channel as per daily chart. All the other indices such as midcap, small cap etc also extended gain & closed weekly in positive territory. One can expect market to extend further towards higher levels targets as expected below in short term. Any kind of decline or short term consolidation is stock specific buying opportunity till short term reverses.

 
As mentioned last week, about end of medium term wave-IV correction & beginning of wave-V upward rally towards higher levels targets in medium term as preferred wave counts. It looks like market has completed short term correction near recent low of 9951.90 levels on nifty & 32,483.84 levels on Sensex. It has almost retraced almost 38.2% near recent lows in these short term correction as per chart attached. It looks like beginning of wave-I of 5 as per chart attached as per preferred wave counts with ruling out possibility to break recent lows as mentioned above till short term reverses. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.

 

Short-term outlook for the market remains positive till Nifty trades above 10,111 levels and expecting targets in the range of 10,700-10,800 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and expecting targets in the range of 12,000-12,200 levels in medium term.
 
Nifty Bank also closed weekly in negative territory. It has relatively underperformed during week. Its consolidating in thin range of 25,500-25,000 levels during week. It’s also trading in channel as per chart attached. It has strong support around 24,115.80 levels. One can expect higher levels targets around 25,800 levels till it holds in short term & further above 29,600-30,000 levels in medium term.

 
10,400-10,500 & 10,700 levels is strong support & resistance levels range respectively based on option open interest data so far for expiry perspectives next week. Market will remain very volatile ahead of Result season this month.
 
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. Close below short term reversal levels will lead to sharp correction till 9,950-9,800 levels on Nifty & 32,400-31,800 levels on Sensex in short term.
 
Stock Picks:
 
DHFL- BUY

CLOSE – Rs 584
TARGET – Rs 610/635
 
DHFL closed weekly in positive territory. It’s outperforming in short term. Its daily momentum indicators are in BUY. One can BUY with stop loss of 548 for the target of 610/635 levels in short term.
 
NTPC- BUY
CLOSE – Rs- 174.50
TARGET – Rs 180/185
 
NTPC closed weekly in positive territory. It’s outperforming in short term. Its daily momentum indicators care BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs 170 for the target of Rs 175/178 in short-term.

 
KOTAK BANK- BUY
CLOSE – Rs-1159
TARGET – Rs-1194
 
KOTAK BANK closed the weekly in positive territory. Its outperforming in short term. Its daily momentum indicators are in BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs 1100 for the target of Rs 1194 levels in short-term.
 
TATA CHEMICALS- BUY
CLOSE – Rs 734
TARGET – Rs 760-765
 
TATA CHEMICALS closed the weekly in positive territory. It’s outperforming in short term. Its daily momentum indicators care BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-710 for the target of Rs 760-765 levels in short-term.

 
Disclaimer: The analyst may / may not have a position in the scrips mentioned above