 "Short term outlook remains positive: Devang Shah")
NIFTY
CLOSE-8189.70 (09.10.2015)
Nifty closed 2nd consecutive week in positive territory. It has achieved short term targets of 8225 levels as expected last week. It made a high of 8232.20 levels. All the other indices such as Midcap, Small cap & Bankex etc closed weekly in positive territory.
Short term out looks for the market remains positive till nifty trades above 8091 levels. Sustain above 8232 levels will confirm further extension of recent rally till 8360-8400 levels on nifty in near term. One should watch out market behaviour at these crucial levels. Medium term out look for the market still remains negative till nifty trades below 8650 levels.
CNX BANKEX is failing to participate in recent rally after giving strong sign initially, its not good sing at current levels of market. It’s trading in very thin range. It has to participate in rally ahead or else market will TOP out around these levels in wave-X Pull back rally. One should watch out its behaviour at least in short term for taking further clue on short term trend of market.
CNX BANKEX today made a lower low of 17799 levels & created negative divergence with main index nifty & sensex. It failed to surpass earlier high of 17860 levels. It has to surpass these high in short term or else it will be advance warning sign for completion of recent pull back rally with wave-Y of CNX Bankex remained short.
In case of bullish scenario in CNX BANKEX, It may be forming bullish running triangle & sustain above 17860 levels will confirm further rally till 18400-18600 levels in short term. 17470 levels is crucial support for CNX Bankex for the same.
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Momentum indicators daily KST & daily MACD both are in BUY supporting short term trend. Sustain below short term reversal levels will lead to sharp fall till 7690-7539 levels in short term. One should be stock specific with & keep booking profit at regular intervals at such crucial final levels of pull back rally & follow the trend with trail stop loss levels till it reverses.
Stock Picks:
BHARAT FORGE-BUY
CMP- Rs 949
TARGET- Rs 1000
BHARAT FORGE closed weekly in positive territory. Its Daily momentum indicators are in SELL. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with a Stop Loss of Rs 928 for the target of Rs 1000 levels in short term.
ADANI PORT-BUY
CMP - Rs 316.70
TARGET- Rs 335
ADANI PORT closed weekly in Positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with Stop Loss -Rs 312 for the target of Rs 335 levels in short term.
ICICI BANK-BUY
CMP - Rs 285.65
TARGET-Rs 295
ICICI BANK closed weekly in Positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It has started wave-V up on daily charts. One can BUY with Stop Loss- Rs 280 for the target of Rs 295 levels in short term.
L&T-BUY
CMP-Rs 1541
TARGET- Rs 1630
L&T closed weekly in positive territory. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. It can further extend in this pull back rally. One can BUY with Stop Loss- Rs 1521 for the target of Rs 1630 levels in short term.
Devang Shah is a Portfolio Manager- PRO TECH-PMS at Sharekhan
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.