Market Outlook
MONDAY, JANUARY 06, 2020
Market Outlook (Closing) as on 06.01.2020
Market closed in negative territory at 40676.63 (- 787.98)
WAVE-II CORRECTION ON IN SHORT TERM:
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 finally broken short term consolidation range of last couple of trading session on down side after achieving my short term targets levels near recent high. It made a high of 12293.90 levels on nifty & 41809.96 levels on sensex in recent rally. One can expect market to correct towards lower levels targets as mentioned below in short term till it reverses. Trader should be stock specific & follow the trend till it reverses.
We have seen rally on main indices in last three months & completed wave-I of 5 from wave count perspectives as per chart attached. One can expect wave-II of 5 correction in short term towards lower levels targets in short term.
As expected, we have seen out performance in midcap & small caps last week in this rally. We can see correction or consolidation in this indices in short term, But I feel that it will continue to out perform in this phase. One should watch out its behavior in short term & continue to BUY specific stocks in portfolio from medium to long term perspectives.
BANK NIFTY also completed wave-I of 5 near recent high. It made a high of 32773.85 levels. Its also started wave-II of 5 correction in short term. One can expect lower levels target1-31000 & taregt2-30300 levels in short term till it reverses. 32500 levels is crucial resistance & reversal levels for short term. 26683 levels is crucial support levels from medium to long term perspectives, ill it holds, One can expect higher levels targets in the range of 34000 levels on medium term.
12000/11500 &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 supporting short term trend . Close above short term reversal levels will finally confirm end of correction &wave-III of 5 beginning towards further higher levels targets in medium term.One should be stock specific & follow the trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY & market is closed above 20WESM & 40 WEMA. ALL Medium term momentum indicators are in BUY indicating strength & supporting medium to long term trend.
Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP.
Trend
Market Outlook (Closing) as on 06.01.2020
Market closed in negative territory at 40676.63 (- 787.98)WAVE-II CORRECTION ON IN SHORT TERM:
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:
We have seen rally on main indices in last three months & completed wave-I of 5 from wave count perspectives as per chart attached. One can expect wave-II of 5 correction in short term towards lower levels targets in short term.
As expected, we have seen out performance in midcap & small caps last week in this rally. We can see correction or consolidation in this indices in short term, But I feel that it will continue to out perform in this phase. One should watch out its behavior in short term & continue to BUY specific stocks in portfolio from medium to long term perspectives.
BANK NIFTY also completed wave-I of 5 near recent high. It made a high of 32773.85 levels. Its also started wave-II of 5 correction in short term. One can expect lower levels target1-31000 & taregt2-30300 levels in short term till it reverses. 32500 levels is crucial resistance & reversal levels for short term. 26683 levels is crucial support levels from medium to long term perspectives, ill it holds, One can expect higher levels targets in the range of 34000 levels on medium term.
12000/11500 &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 supporting short term trend . Close above short term reversal levels will finally confirm end of correction &wave-III of 5 beginning towards further higher levels targets in medium term.One should be stock specific & follow the trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY & market is closed above 20WESM & 40 WEMA. ALL Medium term momentum indicators are in BUY indicating strength & supporting medium to long term trend.Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 40135-38700 |  | 41487 |
| Medium Term : | Trend | Reversal |
| 45000-47000 |  | 32483 |
| Short Term : | Trend | Reversal |
| 11700/11800-11500 | | 12266 |
| Medium Term : | Trend | Reversal |
| 13800-14000 | | 9951 |