NIFTY
CLOSE- 10530.70 (29.12.17)
Market closed 5th consecutive week in positive territory. Its extending on upside towards short term targets levels as expected. It closed at highest levels at the end of calendar year 2017. Typically, Market is entering in to crucial resistance zone of 10,600-10,800 levels on Nifty & 34,500-35,500 from wave count perspectives. One should watch out market behaviour is this resistance cluster zone. Sustain above higher end of this cluster zone will only confirm further extension of this rally in short-term till thEN, trader should be stock specific and keep booking profit at periodic intervals in short term. One should be stock specific and trail till it reverses.
It can be ending diagonal pattern or Running Triangle kind of pattern in case of extended wave alternatively as per hourly charts is still not conclusive in short term but one should be stock specific and light in leveraged position at these crucial cluster of resistance zone in short term.
Bank Nifty closed the week in a negative territory. It is underperforming in this rally compare to main indices and broader market as well. Extension in Bank Nifty will be to watch out in short term. 25,300 is crucial support for Bank Nifty in short term, till it holds one can expect higher levels targets till 26,300-26,600 levels in short term. On the other hand, break of this support levels will lead to sharp correction till 24,900 levels in short term. Bank Nifty behaviour is key to watch out in short term.
Short-term outlook for the market remains positive till Nifty trades above 10,300 levels and expecting target of 10,700-10,850 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 12,000-12,200 levels in medium term.
I feel this is the last phase of extended wave-(3) rally of Bull market and typically market will finally TOP Out in January for wave-(4) price wise corrections as per Time cycle. Trader should be stock specific & closely watch out market behaviour at higher levels.
10,000-10,800 levels is strong support and resistance levels respectively based on option open interest data so far for January month series. Any kind of short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST & daily MACD both are in BUY supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will confirm price wise correction till 9880/9700 levels on Nifty and 32,300-31,000 levels on Sensex in short term.
Stock Picks:
SUN TV- BUY
CLOSE – Rs 988
TARGET – Rs 1030/1050
SUN TV is showing sign of extension in short term. It’s trading above 20 DMA. Its momentum indicators are in BUY. Risk reward is favorable to buy at current levels. One can buy with stop loss of 968 for the target of 1030-1050 levels in short term.
AXIS BANK-BUY
CLOSE – Rs- 560
TARGET – Rs 575-585
Axis Bank closed the week in a positive territory. It’s showing signs of extension in short term. It managed to hold support of 40-DMA. Risk reward is favourable to buy at current levels. One can buy with a stop loss of Rs 547 for the target of Rs 572-585 in short-term.
TATA MOTORS- BUY
CLOSE – Rs- 430
TARGET – Rs 450-455
Tata Motors closed the week in a positive territory. It’s managed to hold support of 20-DMA. Risk reward is favourable to buy at current levels. It's daily momentum indicators are in BUY. One can buy with a stop loss of Rs 417 for the target of Rs 450-455 in short-term.
INIDA CEMENTS- BUY
CLOSE - Rs 183
TARGET - Rs 193-198
India Cements closed the week in a positive territory. It’s showing signs of extending further after completion of medium-term correction. Risk reward is favourable to buy at current levels. Its momentum indicators are in BUY. One can buy with a stop loss of Rs 175 for the target of Rs 193-198 levels in short-term.
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.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.