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

The short-term outlook for the market remains positive till Nifty trades above 10,534 levels and expecting targets in the range of 11,000-11,100 levels in short term, says Devang Shah.

NIFTY      

CLOSE- 10,791.65 (22.02.2019)

The market managed to hold lower end support/Reversal levels as mentioned below last week & closed weekly in positive territory. It made a low of 10,585.65 levels on nifty & 35,287.16 levels during the week. It looks like the end of wave-II of 5 corrections. One can expect the market to extend towards higher levels targets as mentioned below till it reverses. Any kind of decline or consolidation is buying opportunity till short term reverses.

It looks like the end of wave- II of 5 corrections near recent lows. One should closely watch out broader market behaviour at current levels of the market. It has to catch up now for further confirmation of the overall trend of the market. Broader market (Midcap/Smallcap) is still underperforming at current levels of the market. It has to participate in this rally now & this divergence between main indices & broader market is going to end soon. Risk Reward is favourable to BUY stock specific at current levels of the market.

The short-term outlook for the market remains positive till Nifty trades above 10,534 levels and expecting targets in the range of 11,000-11,100 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9,951 level and expecting targets in the range of 12,500-12,800 levels in the medium term.

BANK NIFTY also closed weekly in positive territory. Its looks like triangular kind of consolidation in wave-II as per chart attached. 26,500 level is strong support on bank nifty, till it holds one can expect higher levels target1-28,700/28,800 & target2-29,500 level in short term. 23,600 level is strong support for medium-term perspectives, till it holds, One can expect higher levels targets in the range of 30000-32000 levels on medium-term perspectives 10,700 & 11,000 levels is strong support & resistance levels respectively based on option open interest data for expiry perspectives next week. 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 & DAILY MACD both are in SELL but one should wait for price reversal to finally conclude short term reversal. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Risk Reward is favourable to BUY at current levels of the market. Close below short term reversal levels will lead to sharp correction till 10,300 levels on nifty & 34,400 levels on Sensex in short term.

Stock Picks:

BEL – BUY

CLOSE – Rs 78.50

TARGET – Rs 84/88

BEL closed weekly in positive territory. It looks like the end of medium term correction. 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 72 for the target of 84/88 levels in short term.

CUMMINS – BUY

CLOSE – Rs 695

TARGET – Rs 725/740

CUMMINS closed weekly in positive territory. It looks like the end of medium term correction. 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 660 for the target of 725/740 levels in short term.

POWERGRID – BUY

CLOSE – Rs 181.55

TARGET – Rs 186/188

POWERGRID closed weekly in positive territory. It looks like the end of medium term correction. 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 173 for the target of 186/188 levels in short term.

RAYMOND – BUY

CLOSE – Rs 733

TARGET – Rs 760/780

RAYMOND closed weekly in positive territory. It looks like the end of medium-term correction. 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 680 for the target of 760/780 levels in short term.

Devang Shah: The author of www.trendtechno.com (Trade with Trend) and an independent market analyst.

Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.