Market Outlook
TUESDAY, FEBRUARY 04, 2020
Market Outlook (Closing) as on 04.02.2020
Market closed in negative territory at 40,789.38 (+ 917.07)
CONCLUDING SHORT TERM REVERSAL: TRAIL TILL IT REVERSES:
SHARP REVERSAL FROM SUPPORT LEVELS WITH END OF WAVE-II CORRECTION:
ANY KIND OF SHORT TERM VOLATALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Market managed to hold short term support levels as expected & sharply reversed from lower levels. It made a low of 11614.50 levels on nifty & 39563.07 levels on sensex in this correction. It looks like end of wave-II correction & one can expect higher levels targets as mentioned below in short to medium term. Any kind of short term correction or consolidation is buying opportunity till it reverses.
It looks like end of wave-II of 5 correction from wave count perspectives as per chart attached. One can expect wave-III beginning across the board for higher levels targets in short to medium term.
Midcap & Small cap Indices ( Broader markets) also completed wave-II correction at lower levels. It has also started wave-III beginning. As mentioned earlier, one can expect these indices to outperform going forward in medium to long term perspectives in rally ahead.
BANK NIFTY also completed wave-II correction. It looks like end of wave-II correction at lower levels as expected. It made a low of 29612.55 levels in this correction. Its strong support & reversal levels for short term, till it holds one can expect higher levels targets till target1-32600 & target2-33900 levels in near term. 27100 levels is crucial support levels from medium to long term perspectives, till it holds, One can expect higher levels target1-36300 & target2-40500 levels on medium term to long term.
11500 &12500 levels is strong support & resistance levels respectively based on option open interest data so far for current month series . Any kind of such short term correction or consolidation is stock specific buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST & DAILY MACD both are in SELL indicating volatile trend in short term ahead of RBI Policy. 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 11500 levels & 39130 levels in sensex in short term.
Momentum Perspective:
Weekly KST Went in to SELL but WEEKLY MACD are in BUY. Market is closed above 20WESM & 40 WEMA. Majority of Medium term momentum indicators are in BUY indicating strength & supporting medium to long term trend.
Conclusion:
Short Term Trend is UP & Medium term Trend is UP.
Trend
Market Outlook (Closing) as on 04.02.2020
Market closed in negative territory at 40,789.38 (+ 917.07)CONCLUDING SHORT TERM REVERSAL: TRAIL TILL IT REVERSES:
SHARP REVERSAL FROM SUPPORT LEVELS WITH END OF WAVE-II CORRECTION:
ANY KIND OF SHORT TERM VOLATALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
It looks like end of wave-II of 5 correction from wave count perspectives as per chart attached. One can expect wave-III beginning across the board for higher levels targets in short to medium term.
Midcap & Small cap Indices ( Broader markets) also completed wave-II correction at lower levels. It has also started wave-III beginning. As mentioned earlier, one can expect these indices to outperform going forward in medium to long term perspectives in rally ahead.
BANK NIFTY also completed wave-II correction. It looks like end of wave-II correction at lower levels as expected. It made a low of 29612.55 levels in this correction. Its strong support & reversal levels for short term, till it holds one can expect higher levels targets till target1-32600 & target2-33900 levels in near term. 27100 levels is crucial support levels from medium to long term perspectives, till it holds, One can expect higher levels target1-36300 & target2-40500 levels on medium term to long term.
11500 &12500 levels is strong support & resistance levels respectively based on option open interest data so far for current month series . Any kind of such short term correction or consolidation is stock specific buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST & DAILY MACD both are in SELL indicating volatile trend in short term ahead of RBI Policy. 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 11500 levels & 39130 levels in sensex in short term.
Momentum Perspective:
Weekly KST Went in to SELL but WEEKLY MACD are in BUY. Market is closed above 20WESM & 40 WEMA. Majority of Medium term momentum indicators are in BUY indicating strength & supporting medium to long term trend.Conclusion:
Short Term Trend is UP & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 43000 |  | 39563 |
| Medium Term : | Trend | Reversal |
| 46000-47000 | | 32483 |
| Short Term : | Trend | Reversal |
| 13500-14000 | | 11614 |
| Medium Term : | Trend | Reversal |
| 13800-14000 | | 9951 |