Market Outlook
MONDAY, MAY 04, 2020
Market Outlook (Closing) as on 04.05.2020
Market closed in negative territory at 31715.35 (- 2002.27)
CONCLUDING END OF PULL BACK RALLY: TRADER SHOULD BOOK PROFIT IN LONG POSITION & SHORT STOCK SPECIFIC FOR NEXT ROUND OF CORRECTION FURTHER:
LOOKS LIKE END OF WAVE-X OR WAVE-IV PULL BACK RALLY: TRAIL TILL 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 has given daily negative close & witnessed sharp sell off with gap down from higher levels. It has already achieved my short term targets levels near recent high of 9889.05 levels on nifty & 33886.50 levels on sensex ( i.e. around 50% retracement) in this pullback rally. By looking at many parameters on charts, I am concluding end of pullback rally near these highs & beginning of next round of correction further. We can expect further lower levels targets as mentioned below in this correction. Trader should book profit in long position & short stock specific for next round of correction till it reverses.
It looks like end of either wave-IV or wave-X Pullback rally. My preferred one is end of wave-IV as of now as per chart attached. One can expect lower levels targets further as mentioned below in this correction in short to medium term.
BANK NIFTY also looks like completed wave-IV triangle as per chart attached in this pullback rally. It has also completed pullback rally near recent high of around 21967 levels. It’s also underperforming in this pullback rally. 22000 levels is crucial resistance/reversal levels for short term now, 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.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatility to remain in short term. One should be stock specific & follow trend with trail stop loss levels till it reverses 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 04.05.2020
Market closed in negative territory at 31715.35 (- 2002.27)CONCLUDING END OF PULL BACK RALLY: TRADER SHOULD BOOK PROFIT IN LONG POSITION & SHORT STOCK SPECIFIC FOR NEXT ROUND OF CORRECTION FURTHER:
LOOKS LIKE END OF WAVE-X OR WAVE-IV PULL BACK RALLY: TRAIL TILL 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 end of either wave-IV or wave-X Pullback rally. My preferred one is end of wave-IV as of now as per chart attached. One can expect lower levels targets further as mentioned below in this correction in short to medium term.
BANK NIFTY also looks like completed wave-IV triangle as per chart attached in this pullback rally. It has also completed pullback rally near recent high of around 21967 levels. It’s also underperforming in this pullback rally. 22000 levels is crucial resistance/reversal levels for short term now, 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.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatility to remain in short term. One should be stock specific & follow trend with trail stop loss levels till it reverses 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 |  | 33887 |
| Medium Term : | Trend | Reversal |
| 22494-21200 | | 36100 |
| Short Term : | Trend | Reversal |
| 8400-8000-7500 | | 9900 |
| Medium Term : | Trend | Reversal |
| 6800-6300 | | 10691 |