Market Outlook
MONDAY, JUNE 01, 2020
Market Outlook (Closing) as on 01.06.2020
Market closed in Positive territory at 33303.52 (+ 879.42)
PULL BACK RALLY EXTENDING FURTHER IN SHORT TERM AND BECOMING SHORT TERM RANGE BROADER FURTHER:
ENTERING & COMING BACK TO UPPER ENDS OF RANGE OF RESISTANCE CLUSTER ZONE FURTHER:
REVISING SHORT TERM REVERSAL LEVELS , AS RISK REWARD IS FAVOURABLE FOR BEARS INSPITE OF BULLS FROM SHORT TO MEDIUM TERM PERSPECTIVES, AS TAKING IT STILL AS PULL BACK RALLY IN BEAR MARKET : TRAIL TIL IT REVERSES:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
WAVE-II BEAR MARKET CORRECTION: EXIT IN PULL BACK RALLY TILL MEDIUM TERM REVERSES:
Market sharply bounces back from expiry week. It found support at lower end of range near recent lows of 8806.75 levels on nifty & 29968.45 levels on sensex. It started to extend further in this pullback rally & making short term range broader further. It’s entering in upper end of range of resistance cluster zone in short term. Risk reward is favorable for BEARS in spite of BULLS from short to medium term perspectives at current levels of market, as still taking it pull back rally only of BEAR Market. One should follow trend with revised short term reversal levels till it reverses.
It looks like wave-B or Wave-X pull back rally of recent fall as per chart attached from overall wave count perspectives. In that case, we are trading near upper end of range of 50% retracement zone at current levels of market. It made today high of 9931.60 levels on nifty & 33671.69 levels on sensex today. Risk Reward is more favorable for Bears in spite of bulls from short to medium term perspectives, as taking it as pull back rally in Bear market. In extreme case of further extension it can stretch till 61.8% retracement levels for the targets levels of around 10250-10600 levels & 34700-36100 levels on sensex in extreme case. But one should be stock specific & closely watch out market behavior at this upper end of range
BANK NIFTY is still underperforming at current levels of market. It made a low of around 17005.95 levels & sharply bounced back from these levels. It’s also trading in broad range of 17000-22000 levels in short term. 22000 levels are short term reversal levels, till it trades below it one can expect lower levels targets till 16000-15500 levels in short term. 26650 levels is crucial medium term reversal levels for bank nifty, till it holds one can expect lower levels targets till 13400-13200 levels in medium term.
9500 & 10000 levels is crucial support & Resistance levels based on option open interest data for expiry perspectives for current month series. Any kind of pull back rally is stock specific selling opportunity as medium term trend is still down.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatile short term trend. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. Sustain & close above short term reversal levels will lead to extension of pull back rally further towards 10250-10600 levels on nifty & 34700-36100 levels on sensex in short term.Momentum Perspective:
Weekly KST & WEEKLY MACD both are in SELL. Market is closed below 20WESM & 40 WEMA. Majority of indicators with Price has confirmed medium term reversal.
Conclusion:
Short Term Trend is DOWN & Medium term Trend is DOWN.
Trend
Market Outlook (Closing) as on 01.06.2020
Market closed in Positive territory at 33303.52 (+ 879.42)PULL BACK RALLY EXTENDING FURTHER IN SHORT TERM AND BECOMING SHORT TERM RANGE BROADER FURTHER:
ENTERING & COMING BACK TO UPPER ENDS OF RANGE OF RESISTANCE CLUSTER ZONE FURTHER:
REVISING SHORT TERM REVERSAL LEVELS , AS RISK REWARD IS FAVOURABLE FOR BEARS INSPITE OF BULLS FROM SHORT TO MEDIUM TERM PERSPECTIVES, AS TAKING IT STILL AS PULL BACK RALLY IN BEAR MARKET : TRAIL TIL IT REVERSES:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
WAVE-II BEAR MARKET CORRECTION: EXIT IN PULL BACK RALLY TILL MEDIUM TERM REVERSES:
It looks like wave-B or Wave-X pull back rally of recent fall as per chart attached from overall wave count perspectives. In that case, we are trading near upper end of range of 50% retracement zone at current levels of market. It made today high of 9931.60 levels on nifty & 33671.69 levels on sensex today. Risk Reward is more favorable for Bears in spite of bulls from short to medium term perspectives, as taking it as pull back rally in Bear market. In extreme case of further extension it can stretch till 61.8% retracement levels for the targets levels of around 10250-10600 levels & 34700-36100 levels on sensex in extreme case. But one should be stock specific & closely watch out market behavior at this upper end of range
BANK NIFTY is still underperforming at current levels of market. It made a low of around 17005.95 levels & sharply bounced back from these levels. It’s also trading in broad range of 17000-22000 levels in short term. 22000 levels are short term reversal levels, till it trades below it one can expect lower levels targets till 16000-15500 levels in short term. 26650 levels is crucial medium term reversal levels for bank nifty, till it holds one can expect lower levels targets till 13400-13200 levels in medium term.
9500 & 10000 levels is crucial support & Resistance levels based on option open interest data for expiry perspectives for current month series. Any kind of pull back rally is stock specific selling opportunity as medium term trend is still down.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatile short term trend. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. Sustain & close above short term reversal levels will lead to extension of pull back rally further towards 10250-10600 levels on nifty & 34700-36100 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in SELL. Market is closed below 20WESM & 40 WEMA. Majority of indicators with Price has confirmed medium term reversal.Conclusion:
Short Term Trend is DOWN & Medium term Trend is DOWN.
Trend
| Short Term : | Trend | Reversal |
| 25500-24400 |  | 34470 |
| Medium Term : | Trend | Reversal |
| 22494-21200 | | 36100 |
| Short Term : | Trend | Reversal |
| 8400-8000-7500 | | 10160 |
| Medium Term : | Trend | Reversal |
| 6800-6300 | | 10691 |