Buy ICICI Bank, BHEL, Vedanta: Devang Shah

Nifty closed weekly in positive territory after sharp decline of consecutive last four weeks. It failed to extend in wave-V of C as anticipated. It has completed 5 wave decline structure & achieved W=Y Equality Targets near recent lows. It has made a low of 7539.40 levels during week.

All the other Indices such as Midcap, Small cap & Bankex etc closed weekly in positive territory. CNX BANKEX has also achieved equality targets in this correction as anticipated. It made a low of 15,793 levels & started to sharply rise from these levels. One can expect this rally to continue further for the targets of 17185 levels till this low holds in short term.

Short term out look for the market remains positive till Nifty trades above 7539 levels & expecting targets in the range of 7980-8090 levels in short term. It may remain in broad range between 7539-8100 levels for some more time with high volatility of both sides in short term ahead of major event such as FED MEET, RBI Policy this month.

Whether its end of Wave-4 correction on main index & CNX BANKEX & we are heading for further new all time higher levels in uncharted territory or these rally is still part of correction as retracement pull back rally of wave- X is still not conclusive, will look for further evidences to conclude the same at higher levels, Therefore, Medium term out look for the market still keeping down.

Momentum indicators daily KST & daily MACD both are in BUY. Sustain below short term reversal levels will lead to sharp correction till 7420 levels in short term. One should be stock specific & follow the trend with till it reverses.

ICICI Bank

BHEL