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Expecting target of 10,000 on Nifty in medium term, says Devang Shah

Devang Shah/Mumbai 20 Mar 17 | 08:05 AM

NIFTY

CLOSE- 9160.05 (17.03.17)

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Nifty closed secondconsecutive week in positive territory. It has achieved my first short term targets levels as expected last week. It made a high of 9,218.40 levels so far in this rally. Nifty indices has surpassed its previous life time high of around 9,119.20 levels; created new record during the week. All the other indices also extended gain as expected & closed weekly in positive territory.

Its extending in wave-V as per weekly charts as per short term wave counts. It’s advisable to follow simple DOW THEROY in such kind of extend rally to RIDE the TREND. Sustain above recent high will further confirm higher levels targets in short term. Positional trader should follow the trend till it reverses.

Short term outlook for the market remains positive till Nifty trades above 8,860 levels; expecting targets in the range of 9,240-9,260 levels ( 0.618% of wave-I) in short term. Sustain above 9,260 levels will only confirm further higher levels targets till 9500 levels (i.e. - Wave-I = Wave-V). Short term trader should closely watch out market around these levels. One can’t rule out profit booking from current levels, therefore it’s advisable for Short term trader to book profit at regular intervals.

Medium term outlook for the market remains positive till Nifty trades above 8,327 levels; expecting target of 10,000 levels on Nifty in medium term.

BANK NIFTY also extended on upside for wave-V as expected last week. It has also achieved my first short term targets levels near recent high as expected last week It made a high of 21678.50 levels so far in this rally. It has a similar wave count like nifty/sensex indices for short term. Sustain above recent high will confirm further extension of rally in bank nifty for higher levels targets till 22400 levels in short term. One should closely watch out its behaviour at current levels. 20,494 is strong support & reversal levels for short term. One should also Trail it with revised stop loss levels till it reverses.

8800-9200 is strong support & Resistance levels on Nifty respectively based on derivative option open interest data for this month series. Market may consolidate in range for short term. Any kind of short term correction or consolidation is stock specific buying opportunity for medium to long term investor.

Momentum indicators Daily KST; daily MACD both came in to BUY. One should be stock specific & follow the trend with trail stop loss levels till it reverses from trading perspectives. Close below short term reversal levels will lead to possible correction till 8,700-8,680 levels on nifty in short term. 

Stock Picks:

GRASIM -BUY

Close - 1042

Target – 1,080

GRASIM closed weekly in positive territory. It has started wave-V up in short term. Its momentum indicators are in BUY. It also closed above 20 DMA. Risk reward is favourable to BUY at current levels. One can BUY with SL-1013 for the target of 1080 levels in short term

CESC- BUY

Close - 830.85

Target - 880

CESC closed weekly in Positive territory. It has started wave-V up in short term. Its daily momentum indicators are in BUY. It closed above 20 DMA. Risk reward is favourable to BUY at current levels. One can BUY with SL-800 for the target of 880 levels in short term.

AUROBINDO PHARMA - BUY

Close –Rs 686.85

Target-700/715

AURO PHARMA closed weekly in positive territory. It closed above 20 DMA. Momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-670 for the target of 700/715 in short term.

GODREJ INDUSTRIES – BUY

Close - 503.10

Target-525- 530

GODREJ IND closed weekly in positive territory. Its momentum indicators are in BUY. It closed above 20 DMA. It has started wave-V up in short term. Risk reward is favourable to BUY at current levels. One can BUY with SL-480 for the target of 525-530 in short term

Devang Shah: The author of www.trendtechno.com (Trade with Trend) Consultant & Advisors in the world of Financial Market.

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

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