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

Expecting targets in the range of 10,850-10,900 levels in short term, says Devang Shah

NIFTY      

CLOSE- 10692.30  (27.04.2018)

Market closed 5th consecutive week in positive territory. It's slow but steady extending on upside towards higher levels targets in short term as expected last week. It made a high of 10,719.80 levels so far in this week. It closed near high at the end of the weekly trading session. It's 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 the 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 the end of medium term wave-IV correction & beginning of wave-V upward rally towards higher levels targets in the medium term as preferred wave counts. It looks like the market has completed short term correction near the recent low of 9,951.90 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 the beginning of wave-I of 5 as per chart attached as per preferred wave counts with ruling out a 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.

The short-term outlook for the market remains positive till Nifty trades above 10279 levels and expecting targets in the range of 10850-10900 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 the medium term.

Nifty Bank also closed weekly in positive territory. It has outperformed during this week. It has complete short term correction & started to rally further in short term. It made a low of 24,745 levels during the week. One can expect higher levels targets around 26,600 levels till it holds the crucial support of 24,745 levels in short term & further above 29,600-30,000 levels in medium term.

10,500 & 11,000 levels are strong support & resistance levels range respectively based on option open interest data so far for current month series. The market will remain very volatile ahead of Result season this month. By looking at current structure, I feel the market is going to surpass all time high soon on main indices & this rally will have time wise consolidation rather than price wise correction in short term. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.

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: 

BATA- BUY

CLOSE – Rs 790.50

TARGET – Rs 810/835
 

BATA closed weekly in negative territory. It’s outperforming in short term. Its consolidating in a narrow range for short term. It's trading above 20 DMA. One can BUY with a stop loss of 760 for the target of 810/835 levels in short term.

DCB BANK- BUY

CLOSE – Rs 195.20

TARGET – Rs 205/209
 

DCB BANK  closed weekly in positive territory. It’s outperforming in short term. It's trading above 20 DMA. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs 185 for the target of Rs 205/209 in short-term. 

L&T FINANCE- BUY

CLOSE – Rs 169.65

TARGET – Rs 183/188

L&T FINANCE closed the weekly in positive territory. It's outperforming in short term. Its weekly momentum indicators are in BUY.It closed above 20DMA. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs 157 for the target of Rs 183/188 levels in short-term. 

GODREJ INDUSTRIES- BUY

CLOSE – Rs 594

TARGET – Rs 614/628

GODREJ INDUSTRIES closed the weekly in negative territory. It’s outperforming in short term. Its weekly momentum indicators care BUY.It closed above 20DMA. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-570 for the target of Rs 614/628 levels in short-term. 

FEDERAL BANK- BUY

CLOSE – Rs 98.45

TARGET – Rs 105/108
 

FEDERAL BANK closed the weekly in positive territory. Its weekly momentum indicators care BUY.It closed above 20DMA. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-92 for the target of Rs 105/108 levels in short-term. 

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