 "Stock tips from Devang Shah of Sharekhan")
NIFTY
CLOSE- 7713.05 (01.04.16)
Market closed first weekly marginally in negative territory. It has achieved my first short term target of 7,780 levels near recent high. It made a high of 7,777.60 levels. Its showing lost of momentum especially on main index (Nifty/ Sensex) on daily charts. Market is at very crucial resistance levels. One should book partial profit at current levels or trail rest till trend reverses. All the other indices such as Bnkex, Midcap and and Smallcap indices closed the week in positive territory. All these indices are out performing at current levels.
With today’s negative close on nifty & sensex, we may have completed extended wave-V near recent high as mentioned above as an alternate-I. On the other hand, till we are holding short term reversal levels, we are still forming wedge kind of pattern in wave-V in which one last leg UP is still pending till short term targets levels as an alternate-II. But conclusively, we may not expect significant up side esp. on main index in short term. Therefore, one should be cautious & stock specific especially on trading positions of long side at current levels of market.
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Short term outlook for the market remains still positive till Nifty trades above 7,582 levels & one can expect targets of 7,850-7,970 levels in short term. Medium term outlook of the market remains positive till Nifty trades above 6,825 levels & expecting targets in the range of 8,336-8,640-9,120 in medium term.
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Bank Nifty closed daily in positive territory at the end of weekly trading session. It’s also in last leg of extended wave-V. Alternatively, it has already formed wedge kind of pattern in wave-V. But conclusively, it’s also at very crucial resistance levels at current levels of market.
Momentum indicators daily KST is in sell but DAILY MACD is in BUY supporting in short term trend. Market will remain volatile ahead of RBI Policy next week. Close below short term reversal levels will lead to sharp fall till 7,470-7,400 levels on nifty in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses.
Stock Picks:
ACC: BUY
CMP: Rs 1208
TARGET: Rs 1240
ACC closed weekly in positive territory. It’s out performing in short term. It started wave-V up on daily chart after short term consolidation. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 1,381 for the target of Rs 1,240 in short term.
PUNJAB NATIONAL BANK: BUY
CMP: Rs 87.60
TARGET: Rs 95/98
PNB closed weekly in positive territory. It’s out performing in short term. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of Rs 85 for the target of Rs 95/98 in short term.
AMBUJA CEMENT: BUY
CMP: Rs 233
TARGET: Rs 239/240
AMBUJA CEMENT closed weekly in positive territory. It started wave-V up after short term consolidation. Risk reward is favourable to BUY at current levels. One can BUY with Stop Loss of 228 for the target of Rs 239/240 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.