Monday 8 October 2018

Short-term outlook for market negative: Devang Shah

Markets, Stocks, BSE, NSE

NIFTY

CLOSE- 10316.45 (05.10.2018)

Market closed 5th consecutive week in positive territory. It witnessed sharp sell off from higher levels beyond short term targets levels. It was highly volatile during the week. It made a low of 10,262 levels on Nifty & 34,202 levels on Sensex during the week. One can expect lower levels targets as mentioned below in case of any kind of further panic situation if these lows breaks further. As market is in oversold zone, one should also watch out any sign of initial pull back rally in near term.

The divergence between midcap/small cap & large cap needs to end till finally conclude end of short term trend reversal.Momentum indicators Daily KST & DAILY MACD both are in sell supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close above short term reversal levels will finally confirm end of these correction & rally towards higher levels targets as mentioned above in medium term.

Stock Picks:
As market is highly in oversold zone, Risk reward is not favorable to initiate any fresh trading ideas and also market is near crucial medium term support levels, I would not recommend any new trading ideas for this week till we get further clarity on overall trend of market. One should closely watch out market behavior at these crucial levels.

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