Buy Coal India, BHEL, M&M, Asian Paints: Devang Shah

Nifty closed 2nd consecutive week in positive territory, its slow & steady extending on up side as anticipated last week. It has broken out of running triangle kind of consolidation pattern in wave-B on up side; one can expect market to extend towards higher levels targets in short term. It made a high of 8055 levels. All the indices such as Bankex, midcap & Small cap etc also closed 2nd consecutive week in positive territory.

Short term out look for the market remains positive till nifty trades above 7800 levels & expecting targets in the range of 8120-8225 levels in short term. CNX BAKEX is out performing in short term. It’s also extending as anticipated in short term. One can also expect to trend towards targets in the range of 17733-17890 levels in short term. Short term view for CNX Bankex remains up till it trades above 16788 levels.

NSE MIDCAP & BSE MIDCAP also formed Triangular kind of pattern in wave-B & it has still wave-C UP pending in short term. Conclusively, all the indices showing short term pull back rally to continue further.

So far it looks like either wave-B or wave-X Pull back rally from medium term perspectives on nifty daily charts. One should watch out market behaviour at higher levels further for medium term perspectives.

Momentum indicators daily KST & daily MACD both are in BUY supporting short term trend. Close below short term reversal levels will lead to sharp correction till 7678-7539 levels in short term. One should be stock specific & follow the trend till it reverses. Market will remain volatile ahead of Expiry next week.

ICICI Bank

BHEL

Mahindra India