Market Outlook
FRIDAY, JUNE 01, 2018
Market Outlook (Closing) as on 01.06.2018
Market closed in negative territory at 35,227.26 (- 95.12)
CONSOLIDATING IN NARROW RANGE: TRAIL TILL IT REVERSES:
BROADER MARKET - MIDCAP & SMALL CAP INDICES AT NEAR CRUCIAL LOWER END SUPPORT LEVELS OF THIS WAVE-IV CORRECTION:
MIDCAP/SMCALL CAP SHORT TERM PAIN MAY BECOME SOLID MEDIUM TERM GAIN FOR PORTFOLIO WITH QUALITY STOCKS:
ANY KIND OF SHORT TERM VOLTALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Market closed weekly in positive territory. It consolidated in narrow range during the week. It made a low of 10558.45 levels & high of 10,764.80 levels on nifty during the week. It looks like tringular consolidation kind of possibility as preffered wave count alternate as per short term chart attached.Any kind of decline or short term consolidation is stock specific buying opportunity till short term reverses. One can expect higher levels targets as mentioend below in short to medium term.
Alternatively, Nifty has resistance around 10800-10900 levels, failed to sustian above these levels will open up alternate possiblity of bigger triagular consolidation structure in wave-IV as per chart attached. Its not my preffered alternate at current levels of market but one should closely watchout market behavior at higher levels to fianlly conclude the same.
Broader Market particullarly Midcap & Small cap Indices are underperforming at current levels of market. Its actually point of pain for everyboday as far as porftfolios are concerned. According to me, All these indices are at lower end of channel crucial support levels in this wave-IV Correction as per chart attached & it can reverse any time soon. Its a very good opportunity to built up portfolio in such kind of quality midcap/ small cap stocks at current levels. One should watchout broader market behavior at these crucial levels in coming trading session next week to take furhter clue on overall trend of market.
BANK NIFTY closed weekly in positive territory. It has extended on upside as expected last week. Its still outperforming at current levels of market. It made a high of of around 27058.20 levels.It looks like impulsive 5 wave advance structure on daily chart .One can expect higher levels targets around 27700 levels till it holds crucial support of 25550 levels in short term & further above 29600-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
10200 & 11000 levels is strong support & resistance levels range respectively based on option open interest data for current month series. Market will remain very volatile ahead of RBI Policy nextweek. By looking at current structure, I feel market is going to surpass all time high soon on main indices & this rally will have time wise consolidation rather than price wise correction in short term. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST are in BUY & DAILY MACD are in sell indicating volatality to continue in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 9950-9800 levels on nifty & 32400-31800 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL & also closed below 20 WSMA. Its trading above 40 WEMA . Medium term Parameters are showing weakness but one need to watch out price confirmation to conclude medium term reversal till that One can expect market to trend towards higher level targets in medium term. Any kind of short term correction or consolidation in buying opportunity for medium to long term Investment perspectives till it reverses.
Conclusion:
Short Term Trend is UP & Medium term Trend is UP.
Trend
Market Outlook (Closing) as on 01.06.2018
Market closed in negative territory at 35,227.26 (- 95.12)CONSOLIDATING IN NARROW RANGE: TRAIL TILL IT REVERSES:
BROADER MARKET - MIDCAP & SMALL CAP INDICES AT NEAR CRUCIAL LOWER END SUPPORT LEVELS OF THIS WAVE-IV CORRECTION:
MIDCAP/SMCALL CAP SHORT TERM PAIN MAY BECOME SOLID MEDIUM TERM GAIN FOR PORTFOLIO WITH QUALITY STOCKS:
ANY KIND OF SHORT TERM VOLTALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Alternatively, Nifty has resistance around 10800-10900 levels, failed to sustian above these levels will open up alternate possiblity of bigger triagular consolidation structure in wave-IV as per chart attached. Its not my preffered alternate at current levels of market but one should closely watchout market behavior at higher levels to fianlly conclude the same.
Broader Market particullarly Midcap & Small cap Indices are underperforming at current levels of market. Its actually point of pain for everyboday as far as porftfolios are concerned. According to me, All these indices are at lower end of channel crucial support levels in this wave-IV Correction as per chart attached & it can reverse any time soon. Its a very good opportunity to built up portfolio in such kind of quality midcap/ small cap stocks at current levels. One should watchout broader market behavior at these crucial levels in coming trading session next week to take furhter clue on overall trend of market.
BANK NIFTY closed weekly in positive territory. It has extended on upside as expected last week. Its still outperforming at current levels of market. It made a high of of around 27058.20 levels.It looks like impulsive 5 wave advance structure on daily chart .One can expect higher levels targets around 27700 levels till it holds crucial support of 25550 levels in short term & further above 29600-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
10200 & 11000 levels is strong support & resistance levels range respectively based on option open interest data for current month series. Market will remain very volatile ahead of RBI Policy nextweek. By looking at current structure, I feel market is going to surpass all time high soon on main indices & this rally will have time wise consolidation rather than price wise correction in short term. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST are in BUY & DAILY MACD are in sell indicating volatality to continue in short term. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 9950-9800 levels on nifty & 32400-31800 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL & also closed below 20 WSMA. Its trading above 40 WEMA . Medium term Parameters are showing weakness but one need to watch out price confirmation to conclude medium term reversal till that One can expect market to trend towards higher level targets in medium term. Any kind of short term correction or consolidation in buying opportunity for medium to long term Investment perspectives till it reverses.Conclusion:
Short Term Trend is UP & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 36100-36500 |  | 34302 |
| Medium Term : | Trend | Reversal |
| 38200-38500 | | 29077 |
| Short Term : | Trend | Reversal |
| 11000-11200 | | 10417 |
| Medium Term : | Trend | Reversal |
| 12000-12200 | | 8968 |