NIFTY
CLOSE- 10863.65 (01.03.2019)
The market closed in positive territory last week. During the week, it traded in a narrow range of 10,700-10,940 levels -- it made a high of 10,939.70 and a low of 10,729.30. A breakout from this range will lead to a trend with momentum towards short-term targets levels, as mentioned below, until it reverses. Any kind of decline or consolidation is a buying opportunity until short-term reverses.
It looks like an end of wave-II of five corrections near recent lows. Broader market (Midcap/Small cap) outperformed Nifty during the week and it is a good sign at current levels of the market. It has to catch up now for further confirmation of the overall trend of the market. It has to participate in this rally now and this divergence between the main indices and the broader market is going to end soon. Risk Reward is favourable to BUY stock specific at current levels of the market.
The short-term outlook for the market remains positive until Nifty trades above 10,534 levels and expecting targets in the range of 11,000-11,300 levels in short-term. The medium-term outlook for the market remains positive until Nifty trades above 9,951 levels and expecting targets in the range of 12,500-12,800 levels in the medium term.
BANK NIFTY also closed weekly in positive territory. It looks like triangular kind of consolidation in wave-II as per chart attached. 26,500 levels is strong support on bank nifty, till it holds one can expect higher levels (target1-28,700/28,800 & target2-29,500 levels) in short term. 23,600 levels is strong support for medium-term perspectives until it holds, one can expect higher levels targets in the range of 30,000-32,000 levels on medium-term perspectives
10,500/10,700 & 11,000/11,200 levels is strong support and resistance levels, respectively, based on option open interest data for expiry perspectives for current month series. Such short-term correction or consolidation is a stock specific buying opportunity for medium to long term investment perspectives till medium term reverses.
Momentum indicators Daily KST & DAILY MACD both came to BUY supporting the short-term trend. One should be stock specific and follow the trend with trail stop loss levels until it reverses. Risk Reward is favourable to BUY at current levels of the market. Close below short term reversal levels will lead to sharp correction till 10,300 levels on Nifty and 34,400 levels on Sensex in short term.
Stock Picks:
AJANTA PHARMA – BUY
CLOSE – Rs 991
TARGET – Rs 1,070/1,110
AJANTA PHARMA closed weekly in positive territory. It looks like the end of the medium-term correction. Its daily momentum indicators are in BUY. Risk Reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 950 for the target of 1,070/1,100 levels in the short-term.
JAIN IRRIGATION – BUY
CLOSE – Rs 60.80
TARGET – Rs 64.5/68
JAIN IRRIGATION closed weekly in positive territory. It looks like the end of the medium-term correction. Its daily momentum indicators are in BUY. Risk Reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 57 for the target of Rs 64.5/68 levels in short term.
DCB BANK – BUY
CLOSE – Rs 183.70
TARGET – Rs 189/194
DCB BANK closed weekly in positive territory. It's outperforming in short term. Its daily momentum indicators are in BUY. Risk Reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 176 for the target of Rs 189/194 levels in short term.
TATA CHEM – BUY
CLOSE – Rs 564
TARGET – Rs 580/600
TATA CHEM closed weekly in positive territory. It looks like the end of the medium-term correction. Its daily momentum indicators are in BUY. Risk Reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 550 for the target of Rs 580/600 levels in short term.
POWERGRID – BUY
CLOSE – Rs 183.15
TARGET – Rs 187/190
POWER GRID closed weekly in positive territory. It looks like the end of the medium-term correction. Its daily momentum indicators are in BUY. Risk Reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 178.80 for the target of 187/190 levels in short term.
Devang Shah: The author of www.trendtechno.com (Trade with Trend) and an independent market analyst.
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.