NIFTY
CLOSE-7550.90 (01.10.2015)
Nifty closed weekly in positive territory. It managed to hold lower end support levels as expected last week & sharply bounced back after RBI Policy. The correction turned out to be 3 waves’ declines. It made a low of 7691.20 levels on nifty & 25,287.33 levels on sensex. Broader market is out performing at current levels of market. Midcap, small cap & Bankex indices etc closed weekly in positive territory. It made a high of 26,430.62 levels on sensex & 8008.25 levels on nifty at the end of weekly trading session
Short term out look for the market remains positive till Nifty trades above 7,691 levels & expecting targets in the range of 8,040-8,055 levels in short term. Its crucial resistance levels on Nifty for short term, sustain above it will only confirm further rally towards higher levels targets of 8,220 levels in near term.
It’s still not conclusive; either we are forming Triangle or flat pattern in this pull back rally in near term. If it’s Triangle then, we are in time wise consolidation mode in this pull back rally & if it’s flat then, we may retrace more price wise in this pull back rally.
It looks like we may spend more time between 7,700-8,050 levels before further trend established. 7,874 is crucial support levels on nifty for short term. Medium term out look for the market still remains negative till nifty trades below 8,650 levels & expecting targets in the range of 7,420-6,950 levels in medium term.
Momentum indicators daily KST & daily MACD both are in BUY supporting short term trend. One should be stock specific & follow the trend till it reveres. Close below short term reversal levels will lead to sharp correction till 7,539-7,420 levels in short term.
Stock Picks:
TCS-BUY
CMP-Rs 2,640
TGT-Rs 2,750/2,830
TCS closed weekly in positive territory. It closed above 20 DMA. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-Rs 2,590 for the target of Rs 2,750/2,830 levels in short term.
M&M-BUY
CMP-Rs 1,250
TGT-Rs 1,300
M&M closed weekly in positive territory. It closed above 20 DMA. Its Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-Rs 1,217 for the target of Rs 1,300 levels in short term.
ICICI BANK -BUY
CMP-Rs 267
TGT-Rs 285
ICICI BANK closed weekly in positive territory. It’s consolidation in thin range. Risk reward is favourable to BUY at current levels. One can BUY with SL-Rs 256 for the target of Rs 285 levels in short term.
ONGC -BUY
CMP-Rs 232
TGT-Rs 249
ONGC closed weekly in positive territory. It closed above 20 DMA. Risk reward is favourable to BUY at current levels. One can BUY with SL-Rs 225 for the target of Rs 249 levels in short term.
Devang Shah 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.
