Market Outlook
FRIDAY, JANUARY 06, 2023
Market Outlook (Closing) as on 06.01.2023
Market closed in negative territory at 59,900.37 (-452.90)
NEAR LOWER END OF SUPPORT ZONE: TRAIL TILL IT REVERSES
INDECESIVENESS TO CONTINUE FURTHRER IN SHORT TERM: TRAIL TILL IT REVERSES:
RANGE BOUND BEHAVIOR IN SHORT TERM:
TIME WISE CORRECTIVE MODE IN SHORT TERM:
MEDIUM TERM REVERSAL LEVELS TO WATCHOUT FOR FINAL CONCLUSION OF ANY KIND OF EXTENDED CORRECTION:
ANY KIND OF SHORT TERM CORRECTION OR CONSOLIDATION IS A BUYING OPPORTUNITY FROM LONG TERM INVESTMENT PERSPECTIVES:
Market trading range & witnessing short term time wise corrective mode. It made a low of 59669.91 levels in sensex & 17795.55 levels in nifty. It has once again reached near lower end of support levels. It looks like it will remain in range or time wise corrective mode till it reverses. This correction is buying opportunity for medium term perspectives till medium term reverses. Risk reward is favorable to BUY stock specific at current levels or any kind of further decline till medium term reverses for Investment perspectives. Trader should wait for further confirmation to finally conclude end of these short term correction.
The main indices nifty & sensex is trading in channel asper daily chart attached. It has reached near lower end of range. Wave count is not clear at current levels. But this correction near lower end of range or near medium term reversal levels is buying opportunity for investment perspectives till medium term reverses.
Bank nifty also trading in range & it’s in time wise corrective mode for short term. It has also reached near lower end of support levels as per chart attached. Short term trend remains down till it trades below 43578 levels & expecting target of 40700 to 39800 levels in short term. 39600 is crucial support/reversal levels from medium term perspectives till it holds one can expect targets of around 48000 levels in medium term.
17500/18300 is strong support & Resistance levels respectively based on option open interest data for current month series so far from expiry perspectives. Derivatives data indicating Bullish positions in index futures & stock futures still hold by Retail clients. Any kind of further unexpected bad news can lead to massive liquidation of these positions, can possible create further sharp selloff in the market in short term. One should strictly follow trend till volatility & uncertainty settles. Market may trend in range of 17500-18300 levels in short term ahead of budget events net month.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. Break of medium term reversal levels will lead to further sharp sell off towards 17000/16700 levels on nifty & 57000/56000 levels on sensex in short term. Investor should use any kind of correction or consolidation to buy stock specific in tranches in disciplined manner from medium to long term perspectives till it reveses.
Momentum Perspective:
Weekly KST & Weekly MACD both are in SELL. Market closed above 20WESM & 40 WEMA. All the evidences are supporting with medium term trend.
Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP
Trend
Market Outlook (Closing) as on 06.01.2023
Market closed in negative territory at 59,900.37 (-452.90)NEAR LOWER END OF SUPPORT ZONE: TRAIL TILL IT REVERSES
INDECESIVENESS TO CONTINUE FURTHRER IN SHORT TERM: TRAIL TILL IT REVERSES:
RANGE BOUND BEHAVIOR IN SHORT TERM:
TIME WISE CORRECTIVE MODE IN SHORT TERM:
MEDIUM TERM REVERSAL LEVELS TO WATCHOUT FOR FINAL CONCLUSION OF ANY KIND OF EXTENDED CORRECTION:
ANY KIND OF SHORT TERM CORRECTION OR CONSOLIDATION IS A BUYING OPPORTUNITY FROM LONG TERM INVESTMENT PERSPECTIVES:
The main indices nifty & sensex is trading in channel asper daily chart attached. It has reached near lower end of range. Wave count is not clear at current levels. But this correction near lower end of range or near medium term reversal levels is buying opportunity for investment perspectives till medium term reverses.
Bank nifty also trading in range & it’s in time wise corrective mode for short term. It has also reached near lower end of support levels as per chart attached. Short term trend remains down till it trades below 43578 levels & expecting target of 40700 to 39800 levels in short term. 39600 is crucial support/reversal levels from medium term perspectives till it holds one can expect targets of around 48000 levels in medium term.
17500/18300 is strong support & Resistance levels respectively based on option open interest data for current month series so far from expiry perspectives. Derivatives data indicating Bullish positions in index futures & stock futures still hold by Retail clients. Any kind of further unexpected bad news can lead to massive liquidation of these positions, can possible create further sharp selloff in the market in short term. One should strictly follow trend till volatility & uncertainty settles. Market may trend in range of 17500-18300 levels in short term ahead of budget events net month.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. Break of medium term reversal levels will lead to further sharp sell off towards 17000/16700 levels on nifty & 57000/56000 levels on sensex in short term. Investor should use any kind of correction or consolidation to buy stock specific in tranches in disciplined manner from medium to long term perspectives till it reveses.
Momentum Perspective:
Weekly KST & Weekly MACD both are in SELL. Market closed above 20WESM & 40 WEMA. All the evidences are supporting with medium term trend.Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP
Trend
| Short Term : | Trend | Reversal |
| 59300/58600 |  | 61393 |
| Medium Term : | Trend | Reversal |
| 68000 |  | 58578 |
| Short Term : | Trend | Reversal |
| 17700/17400 | | 18266 |
| Medium Term : | Trend | Reversal |
| 20400 | | 17400 |