NIFTY

CLOSE- 10693.70 (07.12.2018)

The market closed weekly in negative territory. It sharply reversed near from crucial support levels at the end of trading session. It made a low of 10588.25 levels on Nifty & 35266.76 levels on Sensex. One can expect the market to trend towards higher levels targets as mentioned below in short to medium term till it reverses.

There are few alternatives from wave count perspectives as per chart attached. But all indicating bullish outlook till medium term reverses. Risk reward is favourable to BUY stock specific at current levels.

The short-term outlook for the market remains positive till Nifty trades above 10489 levels and expecting targets in the range of 11000-11400 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9951 levels and expecting targets in the range of 12500-12800 levels in the medium term.

The broader market is still underperforming at current levels of the market, it’s not a good sign for the overall medium to long-term trend of the market. One should watch out its behavior at these crucial levels of the market for further confirmation of the medium-term trend of the market.

BANK NIFTY also closed weekly in negative territory. It also sharply reversed near from support levels. It made a low of 26234.10 levels. 25900 levels is strong support on bank nifty, till it holds one can expect higher levels targets till 27000-27500 levels in short term.23600 levels is strong support on bank nifty from medium-term perspectives till it holds one can expect higher levels targets in the range of 30000-32000 levels in the medium term.

10200/10500 & 11000 levels is strong support & resistance levels respectively based on option open interest data for current month series. Any kind of such short-term correction or consolidation is buying stock specific opportunity for medium to long-term Investment perspectives till medium term reverses.

Momentum indicators Daily KST went into SELL & DAILY MACD are still in BUY supporting short-term trend indicating volatility ahead of state election results next week. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close or sustain below short-term reversal levels will lead to correction till 10400/10200 levels on Nifty & 34672/34000 levels on Sensex in short term.

Stock Picks:

BATA – BUY

CLOSE – Rs 1056

TARGET – Rs 1090/1115

BATA closed the weekly in a positive territory. It’s outperforming in short term. It’s extending in short term. Risk reward is favorable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 992 for the target of 1090/1115 levels in short term.

PIDILITE – BUY

CLOSE – Rs 1137.35

TARGET – Rs 1195/1220

PIDILITE closed the weekly in a positive territory. It’s outperforming in short term. It has wave-V up pending on the daily chart. Risk reward is favorable to buy at current levels. Its daily momentum indicators are in BUY. One can buy with a stop loss of Rs 1089 for the target of 1195/1220 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 scripts mentioned above.