Stock tips from Devang Shah of Sharekhan

NIFTY

CLOSE- 7604.35 (18.03.2016)

Market closed third consecutive week in positive territory. It has achieved short term targets of 7600 levels near  recent high as expected last week. It made a high of around 7613.60 levels & closed near high at the end of weekly trading session. All the other indices such as Midcap, Bankex , Small cap etc also closed weekly in positive territory. 

Market is showing sign of extension after completion of 5 wave advance rally. It’s continuing up ward trend as per traditional DOW THEORY of Higher TOP/LOWER BOTTOM. Short term outlook for the market remains positive till nifty trades above 7479 levels & expecting multiple targets in the range of 7675-7750-7970 levels in short term.

 In such kind of extension scenario, it’s always advisable to strictly follow trend as per simple Dow Theory & follow the trend till it level wise reverses. Because it’s difficult to conclude when this extensive rally is going to end its first wave from recent bottom at current levels of market.

Market finally confirmed medium term reversal at the end of weekly trading session supported with other medium term momentum observation such as momentum, Moving Averages etc with Possibility of beginning of DOW THEORY reversal which I normally use to conclude medium term reversal based on my historic observation of medium term bottom reversal.

Momentum indicators daily KST & daily MACD both are in BUY supporting in short term trend. Sustain below short term reversal levels will lead to sharp correction till 7400-7320 level in short term. One should be stock specific & follow the trend till it reverses. 

Stock Picks:

VEDANTA: BUY

CMP: Rs 92.70

TARGET: RS 96
 

Vedanta closed weekly in positive territory. It closed above 20 DMA. It’s showing sign of beginning of wave-V up ward rally after short term consolidation. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 89.20 for the target of Rs 96 in short term.

LIC HOUSING FINANCE: BUY

CMP: Rs 464.50

TARGET: Rs 480/490
 

LIC HSG closed weekly in positive territory. It closed above 20 DMA. Its momentum indicators are in BUY. Its looks like beginning of wave-III Upward rally. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 450 for the target of Rs 480/490 in short term.

PUNJAB NATIONAL BANK: BUY

CMP: Rs 84.60

Target: Rs 88/90
 

PNB closed weekly in Positive territory. It closed above 20 DMA. Its momentum indicators are in BUY. It consolidated in narrow range throughout the week. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 82 for the target of Rs 88/90 in short term.
 

BHARAT FORGE: BUY

CMP: Rs 848.95

TARGET: Rs 880/900
 

BHARATFORGE closed weekly in Positive territory. It closed above 20 DMA. Its momentum indicators are in BUY. It looks like beginning of wave-III upward rally. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 824 for the target of Rs 880/900 levels in short term.

AXIS BANK: BUY

CMP: Rs 437

TARGET: Rs 450/460
 

AXIS BANK closed weekly in Positive territory. It closed above 20 DMA. Its momentum indicators are in BUY. It looks like beginning of wave-III upward rally. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 423 for the target of Rs 450/460 levels in short term.

The author is 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