Market Outlook
FRIDAY, OCTOBER 05, 2018
Market Outlook (Closing) as on 05.10.2018
Market closed in negative territory at 34,376.99 (- 792.17)
SHARP SELL OFF BEYOND SHORT TERM TARGET LEVELS:
WATCHOUT OUT FOR ANY SIGN OF INITIAL PULL BACK RALLY FROM OVERSOLD ZONE:
DIVERGENCE BETWEEN MIDCAP/SMALL CAP & LARGE CAP NEEDS TO END TILL FINALLY CONCLUDE SHORT TERM REVERSAL:
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 closed 5th concecutive week in positive territory. It witnessed sharp sell off from higher levels beyond short term targets levels. It was highly volatile during the week. It made a low of 10261.90 levels on nifty & 34202.22 levels on sensex during the week. One can expect further lower levels targets as mentioned below in case of any kind of further panic situation. As Market is in oversold zone, one should also watchout any sign of initial pull back rally in near term. The divergence between midcap/small cap & large cap needs to end till finally conclude end of short term reversal.
The wave counts are not conclusive at current levels, as there is divergence between midcap & small cap indices. I would prefer to watchout these divergence to end to finally conclude end of short term correction. These senario looks like 2015-16 correction case to me so far. Let further development of market will give more clarity.
BANK NIFTY also closed 5th concecuitve week in negative territory. It has made a low of 24364.90 levels so far in this correction. 23600 levels is crucial support & my short term taregts levels as well for bank nifty in short term.While medium term out look for bank nifty still remains positive till it trades above 20900 levels & expecting targets in the range of 32000-33000 levels in medium term.
10000 & 10500 levels is strong support & resistance levels respectively based on option open interest data for expiry perspectives for expiry perspectives next week. 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 & DAILY MACD both are in sell supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close above short term reversal levels will fianlly confirm end of these correction & rally towards higher levels targets as mentioend below in medium term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both Went in to SELL & Its trading below both 20WESM & 40 WEMA . All Medium term Parameters are showing weakness. Oen should watchout price reversal to finally conclude medium term reversal.
Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP.
Trend
Market Outlook (Closing) as on 05.10.2018
Market closed in negative territory at 34,376.99 (- 792.17)SHARP SELL OFF BEYOND SHORT TERM TARGET LEVELS:
WATCHOUT OUT FOR ANY SIGN OF INITIAL PULL BACK RALLY FROM OVERSOLD ZONE:
DIVERGENCE BETWEEN MIDCAP/SMALL CAP & LARGE CAP NEEDS TO END TILL FINALLY CONCLUDE SHORT TERM REVERSAL:
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:
The wave counts are not conclusive at current levels, as there is divergence between midcap & small cap indices. I would prefer to watchout these divergence to end to finally conclude end of short term correction. These senario looks like 2015-16 correction case to me so far. Let further development of market will give more clarity.
BANK NIFTY also closed 5th concecuitve week in negative territory. It has made a low of 24364.90 levels so far in this correction. 23600 levels is crucial support & my short term taregts levels as well for bank nifty in short term.While medium term out look for bank nifty still remains positive till it trades above 20900 levels & expecting targets in the range of 32000-33000 levels in medium term.
10000 & 10500 levels is strong support & resistance levels respectively based on option open interest data for expiry perspectives for expiry perspectives next week. 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 & DAILY MACD both are in sell supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close above short term reversal levels will fianlly confirm end of these correction & rally towards higher levels targets as mentioend below in medium term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both Went in to SELL & Its trading below both 20WESM & 40 WEMA . All Medium term Parameters are showing weakness. Oen should watchout price reversal to finally conclude medium term reversal.Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 33000-32483 |  | 38126 |
| Medium Term : | Trend | Reversal |
| 43200 |  | 32483 |
| Short Term : | Trend | Reversal |
| 9950-10000 | | 11465 |
| Medium Term : | Trend | Reversal |
| 12600-12900 | | 9951 |