Short-term outlook for the market remains positive: Devang Shah

Here is a list of trading ideas and strategies from Devang Shah of Sharekhan for the coming week

NIFTY

CLOSE- 7963.20 (01.01.2016)

Market closed 3rd consecutive week in positive territory. Its slow & steady extending towards higher levels. It made a high of Rs 7,972.25 levels on nifty today i.e. very close to my first short term target of Rs 7,980 levels as expected last week. One can expect short term rally to continue further towards higher levels targets till short term reverses. 

Short term outlook for the market remains positive till nifty trades above Rs 7,776 levels & expecting targets in the range of Rs 8,060-8,116-8,300 levels in short term.

Sensex & Nifty both closed Quarterly in negative territory. Sensex closed monthly in negative territory while Nifty managed to close monthly in positive territory. It’s not giving still clarity about medium term reversal at current levels of market. It remains negative till nifty trades below Rs 8,336 levels. One should watch out further evidences or level wise confirmation for medium term reversal.

 

Rs 7,800 & Rs 8,200 are strong supports & resistance levels respectively based on derivative option open interest data so far for this month at current levels of market. All the other indices such as midcap, small cap & Bankex also continued positive momentum & closed weekly in positive territory. Broader market particularly midcap & small cap stocks are continue to out perform in the rally ahead.

Momentum indicators daily KST & Daily MACD both are in BUY, supporting short term trend. Close below short term reversal levels will lead to sharp correction till Rs 7,550 levels in short term. one should be stock specific & follow the trend with stop loss levels till it reverses.

Stock Picks:

RCOM: BUY

CMP: Rs 90.25

TARGET: Rs 101
 

RCOM closed weekly in positive territory. It’s out performing in short term. It has started wave-III of C on up side. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. 

RELIANCE CAPITAL: BUY

CMP: Rs 462

Target: Rs 515/550
 

Reliance Capital closed weekly in positive territory. It’s out performing in short term. It has started wave-III or C on up side. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels.

ADANI PORTS: BUY

CMP: Rs 267.80

TARGET: Rs 279/289
 

ADANI PORT closed weekly in positive territory. It closed above 20 DMA. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. 

UPL: BUY

CMP: Rs 440

TARGET: Rs -455/470
 

UPL closed weekly in positive territory. It has started wave-C up for higher levels targets. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels.

TATA MOTORS: BUY

CMP: Rs 402

TARGET; Rs 429
 

TATA MOTORS closed weekly in positive territory. It closed above 40 DMA. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. 
 

DISH TV: BUY

CMP: Rs 101.85

TARGET: Rs 106/109
 

DISH TV closed weekly in positive territory. It has started wave-III or C for higher levels targets. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. 

YES BANK: BUY

CMP: Rs 732.30

TARGET: Rs 750/770
 

YES BANK closed weekly in positive territory. It has started wave-C up for higher levels targets. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. 
 

Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst

The author is Portfolio Manager- PRO TECH-PMS at Sharekhan