Market Outlook
TUESDAY, February 02, 2021
Market Outlook (Closing) as on 02.02.2021
Market closed in positive territory at 49,797.72 (+1197.11)
BEGINNING OF FINAL WAVE-V OF 5: TRAIL TILL IT REVERSES:
EXPECT SHARP EUPORIC MOVE IN SHORT TERM IN THIS PHASE OF MARKET:
PARTICIPATES WITH STOCK SPECIFIC APPROACH AND KEEPS REGULAR BOOKING OF PROFIT IN THIS PHASE OF MAKRET:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
MISSING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC AND NOT TO BE CARRIED AWAY WITH TOO MUCH LEVERAGE IN THIS EUPH ORIC PHASE OF MARKET:
Market completed sharp wave-IV short correction as expected & made “V” shape recovery beyond anticipation from lower levels & closed almost near life time high levels in just 2 trading session. One can expect market to trend towards higher levels targets as mentioned below in short to medium term till it reverses. One can expect sharp euphoric move in this phase of market.
Market has completed short term wave-iv correction & started final wave-V of 5 from over all wave counts perspectives as per chart attached. One should participate with stock specific approach & keep regular booking of profit in this phase of market. Additionally, one should not be carried away with too much leverage position in this phase of market.
It still looks like “W” shape recovery or rally like 1998-2003 structure. And it’s missing Wave-V of higher degree from wave count perspectives. So one can’t rule out sharp correction, once this rally completes, towards further lower levels targets towards 2019 lows or retracement of entire rally from March 2019 lows. So one should be very stock specific in this phase of market.
BANK NIFTY also sharply reversed after completion of short term correction. It also looks like end of wave-iv correction from over all wave counts perspectives as per chart attached. 30900 levels is short term support for Bank nifty, till it holds once can expect higher levels taregt1-37000 levels in short term & target2-38000-38500 levels in medium term. 25200 levels is strong support for medium term perspectives on bank nifty.
14000/15000 is strong support zone & Resistance zone levels respectively based on option open interest data for expiry perspectives so far based on option open interest data.
Momentum indicators Daily KST came in to BUY but Daily MACD is still in sell indicating up trend with volatility. Close below short term reversal levels will lead to sharp fall towards 13700-13200 levels on nifty & 46000-44900 levels on sensex in short term. One should be stock specific & follow trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. Market is still closed above 20WESM & 40 WEMA. One should wait for price reversal to finally conclude medium term reversal.
Conclusion:
Short Term Trend is UP & Medium term Trend is UP
Trend
Market Outlook (Closing) as on 02.02.2021
Market closed in positive territory at 49,797.72 (+1197.11)BEGINNING OF FINAL WAVE-V OF 5: TRAIL TILL IT REVERSES:
EXPECT SHARP EUPORIC MOVE IN SHORT TERM IN THIS PHASE OF MARKET:
PARTICIPATES WITH STOCK SPECIFIC APPROACH AND KEEPS REGULAR BOOKING OF PROFIT IN THIS PHASE OF MAKRET:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
MISSING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC AND NOT TO BE CARRIED AWAY WITH TOO MUCH LEVERAGE IN THIS EUPH ORIC PHASE OF MARKET:
Market has completed short term wave-iv correction & started final wave-V of 5 from over all wave counts perspectives as per chart attached. One should participate with stock specific approach & keep regular booking of profit in this phase of market. Additionally, one should not be carried away with too much leverage position in this phase of market.
It still looks like “W” shape recovery or rally like 1998-2003 structure. And it’s missing Wave-V of higher degree from wave count perspectives. So one can’t rule out sharp correction, once this rally completes, towards further lower levels targets towards 2019 lows or retracement of entire rally from March 2019 lows. So one should be very stock specific in this phase of market.
BANK NIFTY also sharply reversed after completion of short term correction. It also looks like end of wave-iv correction from over all wave counts perspectives as per chart attached. 30900 levels is short term support for Bank nifty, till it holds once can expect higher levels taregt1-37000 levels in short term & target2-38000-38500 levels in medium term. 25200 levels is strong support for medium term perspectives on bank nifty.
14000/15000 is strong support zone & Resistance zone levels respectively based on option open interest data for expiry perspectives so far based on option open interest data.
Momentum indicators Daily KST came in to BUY but Daily MACD is still in sell indicating up trend with volatility. Close below short term reversal levels will lead to sharp fall towards 13700-13200 levels on nifty & 46000-44900 levels on sensex in short term. One should be stock specific & follow trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. Market is still closed above 20WESM & 40 WEMA. One should wait for price reversal to finally conclude medium term reversal.Conclusion:
Short Term Trend is UP & Medium term Trend is UP
Trend
| Short Term : | Trend | Reversal |
| 51800 |  | 47370 |
| Medium Term : | Trend | Reversal |
| 52800 | | 41048 |
| Short Term : | Trend | Reversal |
| 15200 | | 14000 |
| Medium Term : | Trend | Reversal |
| 15500-15600 | | 12020 |