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Here are a technical strategies for few stocks in trade today:
NIFTY
CLOSE-8299.95 (21.08.2015)
The Nifty has finally broken its short-term consolidation range on down side. It failed to sustain at higher levels. It made a high of 8,530.60 levels in the recent rally. All the indices such as midcap, small cap & Bankex closed the week in negative territory. One can expect the market to trend towards lower levels in the short term.
CNX Bankex failed to move towards upper end of the range in short term; it has finally broken this consolidation range on the down side and confirmed short-term trend reversal.
The short-term outlook for the market remains negative till the Nifty trades below 8,460 levels and we expect targets of 8,195-7,940 levels in the short term. I have still not changed my medium-term view and still expect a target of 7,500 levels till Nifty trades below 8,850 levels.
The US market is also looking weak at current levels. It is on the verge of a break-out of the last 7-months distribution, on the down side. This could lead to an extended correction in the Indian market as well.
From wave count perspective, we may have ended the Wave-X pullback rally around 8621.55 levels on the Nifty and 28,417.59 levels on sensex & started wave-Y down for lower levels targets in the short-to-medium term.
The market may remain volatile or range bound ahead of derivative expiry next week. The 8,200 level looks crucial support based on derivative option open interest data for this series. Momentum indicators on daily KST & daily MACD charts are in SELL mode. One should be stock specific and follow the trend till it reverses. Only a close above the short-term reversal levels will confirm a further extension of the recent rally till 8,650 levels in the near term.
Stock Picks:
SIEMENS: SELL
CMP-1390
TGT-1306/1216
SIEMENS closed weekly in negative territory. Its Daily momentum indicators are in SELL. Risk reward is favourable to SELL at current levels. It’s at the verge of breaking H&S kind of pattern in short term. One can SELL with SL-1448 for the target of 1306/1216 levels in short term.
L&T: SELL
Close-1740
Tgt-1650/1540
L&T closed weekly in negative territory. It’s underperforming in short term. Its Daily momentum indicators are in SELL. Risk reward is favourable to SELL at current levels. One can SELL with SL-1785 for the target of 1650/1540 levels in short term.
HPCL : SELL
CMP-858.70
TGT-800
HPCL closed weekly in negative territory. It’s under performing in short term. Risk reward is favourable to SELL at current levels. One can SELL with SL-890 for the target of 800 levels in short term.
BAJAJ AUTO : SELL
CMP-2400
TGT-2265/2175
BAJAJ AUTO closed weekly in negative territory. It has broken triangular kind of pattern on down side. Risk reward is favourable to SELL at current levels. One can SELL with SL-2500 for the target of 2265/2175 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.
