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Nifty can hit 10,300-10,700 in the medium term: Devang Shah

Devang Shah/Mumbai 15 May 17 | 08:04 AM

NSE

NIFTY: CLOSE- 9400.90 (13.05.17)

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Market managed to extend upward further without any halt in unchartered territory as anticipated last week. It closed weekly in positive territory. Rally to extend further for higher levels targets in short term till Dow Theory support holds and short-term reverses. Anticipation of major short-term correction in such kind of extended rally looks unlikely from my experience before achieving medium term targets levels. Dow Theory is the only way to ride such kind of extended rally for higher levels targets and not feel left out.

Nifty Bank is also extending in short term as anticipated in unchartered territory. It also closed weekly in positive territory. 21,380 is strong support for short term till it holds rally to continue further for higher levels targets in short to medium term. One can expect targets of around 27,300 levels in medium term. 17,600 is strong support on bank nifty from medium term perspectives.

Short-term outlook for the market remains positive till Nifty trades above 9,269 levels, and I expect a target of 9,550 levels in the short term. Medium-term outlook for the market remains positive till the Nifty trades above 9,327 levels and is expecting targets in the range of 10,300-10,700 levels in medium term.

Dow Theory is the only simple tool to help to ride such kind extended bull market rally. It worked well in past as well particularly in unchartered territory. Therefore, not to expect major correction in short term till Dow Theory supports hold. We may possibly extend more for couple of months till medium term targets levels without any major correction in such kind of liquidly driven extended bull market rally beyond fundamentals.

All the Other indices also closed weekly in positive territory. 9,200/9,300- 9,500 levels in strong support. Resistance levels respectively on Nifty based on derivative option open interest data for current month series. Any kind of short term correction or consolidation is buying opportunity for medium to long term investor. One can expect higher levels targets in medium to long term.

Momentum indicators Daily KST and daily MACD both are in BUY supporting short term view. 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 sharp correction till 9,075/9,000 levels on Nifty 29259/29137 levels on Sensex in short term.

Stock Picks:

ACC -BUY                    

CLOSE – Rs 1,677

TARGET- Rs 1,750

ACC closed the week in a positive territory. It’s outperforming in short term. Its weekly momentum indicators are in BUY. It also closed above 20 DMA. Risk reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs-1600 for the target of 1750 levels in short term.

PETRONET LNG- BUY

CLOSE- Rs 435.40

TARGET – Rs 455

PETRONET LNG closed the week in a positive territory. It’s outperforming in short term. Its weekly momentum indicators are in BUY. It also closed above 20 DMA. Risk reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs-415 for the target of 455 levels in short term.

ASHOK LEYLAND -BUY         

CLOSE- Rs 85.55

TARGET- Rs 89-92

ASHOK LEYLAND closed the week in a positive territory. Its daily momentum indicators are in BUY. It also closed above 20 DMA. Risk reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs-82 for the target of 89-92 levels in short term.

AMARA RAJA BATTERY-BUY

CLOSE – Rs 926.50

TARGET – Rs 950-965

AMARA RAJA BATTERY closed weekly in Positive territory. Its looks like end of short term correction. Daily momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-900 for the target of 950-965 in short term.

EXIDE - BUY

CLOSE – Rs 244.75

TARGET – Rs 255

EXIDE closed weekly in positive territory. Its outperforming in short term. Its momentum indicators are in BUY. Risk reward is favourable to BUY at current levels. One can BUY with SL-237 for the target of 255in short term.



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Devang Shah: The author of www.trendtechno.com (Trade with Trend) and an independent market analyst 

Disclaimer: The analyst may / may not have a position in the scrips mentioned above; the views given above are the personal views of the analyst.

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Sensex

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Tata Motors469.454.30
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Hind. Unilever1,038.051.76
TCS2,557.801.48

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