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

Devang Shah/Mumbai 14 May 18 | 06:30 AM

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CLOSE- 10806.50 (11.05.2018)


The market closed weekly in positive territory after the end of short term time wise consolidation. It ended the weekly trading session on stronger note ahead of Karnataka election results next week. It made a high of 10,812.05 levels on nifty & 35,596.15 levels on Sensex so far in this rally. It looks like the possibility of extension of the rally from here on towards Lifetime high levels after end of time wise short term consolidation phase as expected earlier. One can expect higher levels targets as mentioned below in short to medium term. Any kind of decline or short term consolidation is stock specific buying opportunity till short term reverses. 


BANK NIFTY also closed the 3rd consecutive week in positive territory. It's outperforming in this rally. It made a high of 26,429.90 levels so far in this rally. Its also extending further on the upside after short term time wise consolidation as per chart attached as expected in short term. It looks like the much clear structure of wave-III of 5 on bank nifty with parallel channel set up as per chart attached in short term. One can expect higher levels targets around 27700 levels till it holds the crucial support of 24700 levels in short term & further above 29600-30000 levels in the medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.


The short term outlook for the market remains positive till Nifty trades above 10279 levels and expecting targets in the range of 11000-11200 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 8,968 levels and expecting targets in the range of 12000-12200 levels in the medium term.


10500 & 11000 levels are strong support & resistance levels range respectively based on option open interest data so far for current month series. The market will remain very volatile ahead of Result season this month. By looking at current structure, I feel the market is going to surpass all time high soon on main indices & this rally will have time wise consolidation rather than price wise correction in short term. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.


Momentum indicators Daily KST came in to BUY today & daily MACD is already in BUY supporting short term trend. The market will remain volatile ahead of state election results this month. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 9950-9800 levels on nifty & 32400-31800 levels on Sensex in short term.


Stock Picks: 


L&T FIN - BUY

CLOSE - Rs 178.15

TARGET - Rs 185/190

L&T FIN closed weekly in positive territory. It’s outperforming in short term. It has broken out of short term consolidation. Its daily momentum indicators are in BUY. One can BUY with a stop loss of 168 for the target of 185/190 levels in short term.


YES BANK - BUY

CLOSE - Rs 349.95

TARGET - Rs 370

YES BANK closed weekly in positive territory. It’s outperforming in short term. Its consolidating in range for short term. Its weekly momentum indicators care BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs -320 for the target of Rs 370 in short-term. 


COLGATE - BUY

CLOSE - Rs 1,106.35

TARGET - Rs-1,150-1,174

COLGATE closed the weekly in positive territory. It's outperforming in short term. Its weekly momentum indicators are in BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs 1075  for the target of Rs 1150-1174 levels in short term. 


BAJAJ FIN - BUY

CLOSE - Rs 1,858.50

TARGET - Rs 1,950-2,000

BAJAJ FIN closed the weekly in negative territory. It looks like wave-IV Consolidation as per daily chart  & It has wave-V Up pending as per weekly chart. Its weekly momentum indicators care BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs-1800 for the target of Rs 1950-2000 levels in short-term. 


GODREJ IND - BUY

CLOSE - Rs 591.05

TARGET - Rs 635-640

GODREJ IND closed the weekly in positive territory.  It looks like the end of short term correction. Its weekly momentum indicators are in BUY. Risk reward is favorable to BUY at current levels. One can BUY with a stop loss of Rs 569  for the target of Rs 635-640 levels in short-term. 


Disclaimer: The analyst may / may not have a position in the scrips mentioned above.


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Sensex

Company Price Gain (%)
O N G C160.302.69
Asian Paints1,391.400.98
H D F C2,008.250.91
Yes Bank383.800.80
Hero Motocorp3,501.500.63

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