Buy TCS, M&M, ICICI Bank, ONGC: Devang Shah

Nifty closed weekly in positive territory. It managed to hold lower end support levels as expected last week & sharply bounced back after RBI Policy. The correction turned out to be 3 waves declines. It made a low of 7691.20 levels on nifty & 25,287.33 levels on sensex. Broader market is out performing at current levels of market. Midcap, small cap & Bankex indices etc closed weekly in positive territory. It made a high of 26,430.62 levels on sensex & 8008.25 levels on nifty at the end of weekly trading session.

Short term out look for the market remains positive till Nifty trades above 7,691 levels & expecting targets in the range of 8,040-8,055 levels in short term. Its crucial resistance levels on Nifty for short term, sustain above it will only confirm further rally towards higher levels targets of 8,220 levels in near term.

It’s still not conclusive; either we are forming Triangle or flat pattern in this pull back rally in near term. If it’s Triangle then, we are in time wise consolidation mode in this pull back rally & if it’s flat then, we may retrace more price wise in this pull back rally.

It looks like we may spend more time between 7,700-8,050 levels before further trend established. 7,874 is crucial support levels on nifty for short term. Medium term out look for the market still remains negative till nifty trades below 8,650 levels & expecting targets in the range of 7,420-6,950 levels in medium term.

Momentum indicators daily KST & daily MACD both are in BUY supporting short term trend. One should be stock specific & follow the trend till it reveres. Close below short term reversal levels will lead to sharp correction till 7,539-7,420 levels in short term.

National Stock Exchange of India Ltd (NSE)

TATA Consultancy Services ( TCS )

Mahindra India

ICICI Bank