Market Outlook
MONDAY, JULY 06, 2020
Market Outlook (Closing) as on 06.07.2020
Market closed in positive territory at 36,487.28 (+ 465.86)
PULL BACK RALLY TO EXTEND FURTHER IN SHORT TERM: TRAIL TILL IT REVERSES:
BANK NIFTY IS CRUCIAL TO WATCHOUT FOR SHORT TERM TREND:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
REVISING MEDIUM TERM REVERSAL LEVELS, AS LOOKS LIKE "W" SHAPE RECOVERY OR PULL BACK RALLY:
STILL LOOKS LIKE TYPICAL BEAR MARKET RALLY TILL MEDIUM TERM REVERSES:
Market is extending in pull back rally further. It made a high of 10811.40 levels on nifty & 36,659.09 levels on sensex so far. It closed above short term reversal levels as mentioned earlier in market outlook. It looks like possibility of Rally to extend further in short term. It looks like BANK NIFTY will be crucial to watch out in short term. It will be key dark horse to extend rally further for higher levels targets as mentioned below in short term. It will be in driving sheet & lead the rally in short term. Trader should follow trend till it reverses.
It looks like possibility of extending rally in wave-C as per chart attached. It will be leading case alternatively, if & if only Bank nifty failed to participate in rally in short term & Reverses. Trader should book profit at regular intervals.
BANK NIFTY closed at very crucial levels. It will be crucial to watch out BANK NIFTY behavior in short term. One can BUY Bank nifty for trading perspectives in short term. It can extend in short term for higher levels target1-23300 levels in short term. Sustain above it will lead to further sharp extension of rally till 24700-25500 levels in short term. Outlook for Bank nifty will be positive till it trades above 21000 levels. 27000 levels is medium term reversal levels for Bank nifty, till it holds one can expect lower levels targets till 17000/16000 levels in medium term.
10000 & 11000 levels is crucial support & Resistance levels range respectively based on option open interest data for expiry perspectives for current month series. I am also revising medium term reversal levels for overall trend of the market as below & It still looks like typical Bear Market rally till medium term reverses.And so far it’s turning out to be “W” shape recovery or pullback rally from medium term perspectives. It requires further more confirmation for finally conclude medium term reversal. I will periodically review for the same.
Momentum indicators Daily KST came in to BUY & Daily MACD both are in BUY supporting short term trend. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. 10200 levels on nifty & 34500 levels on sensex is short term support zone, break of it will lead to sharp fall in market in short to medium term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. Market is closed above 20WESM & 40 WEMA. Majority of medium term indicators are in BUY but One should wait for price reversal to finally conclude medium term reversal.
Conclusion:
Short Term Trend is UP & Medium term Trend is DOWN.
Trend
Market Outlook (Closing) as on 06.07.2020
Market closed in positive territory at 36,487.28 (+ 465.86)PULL BACK RALLY TO EXTEND FURTHER IN SHORT TERM: TRAIL TILL IT REVERSES:
BANK NIFTY IS CRUCIAL TO WATCHOUT FOR SHORT TERM TREND:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
REVISING MEDIUM TERM REVERSAL LEVELS, AS LOOKS LIKE "W" SHAPE RECOVERY OR PULL BACK RALLY:
STILL LOOKS LIKE TYPICAL BEAR MARKET RALLY TILL MEDIUM TERM REVERSES:
It looks like possibility of extending rally in wave-C as per chart attached. It will be leading case alternatively, if & if only Bank nifty failed to participate in rally in short term & Reverses. Trader should book profit at regular intervals.
BANK NIFTY closed at very crucial levels. It will be crucial to watch out BANK NIFTY behavior in short term. One can BUY Bank nifty for trading perspectives in short term. It can extend in short term for higher levels target1-23300 levels in short term. Sustain above it will lead to further sharp extension of rally till 24700-25500 levels in short term. Outlook for Bank nifty will be positive till it trades above 21000 levels. 27000 levels is medium term reversal levels for Bank nifty, till it holds one can expect lower levels targets till 17000/16000 levels in medium term.
10000 & 11000 levels is crucial support & Resistance levels range respectively based on option open interest data for expiry perspectives for current month series. I am also revising medium term reversal levels for overall trend of the market as below & It still looks like typical Bear Market rally till medium term reverses.And so far it’s turning out to be “W” shape recovery or pullback rally from medium term perspectives. It requires further more confirmation for finally conclude medium term reversal. I will periodically review for the same.
Momentum indicators Daily KST came in to BUY & Daily MACD both are in BUY supporting short term trend. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. 10200 levels on nifty & 34500 levels on sensex is short term support zone, break of it will lead to sharp fall in market in short to medium term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. Market is closed above 20WESM & 40 WEMA. Majority of medium term indicators are in BUY but One should wait for price reversal to finally conclude medium term reversal.Conclusion:
Short Term Trend is UP & Medium term Trend is DOWN.
Trend
| Short Term : | Trend | Reversal |
| 37720-39500 |  | 34499 |
| Medium Term : | Trend | Reversal |
| 32350-29968-27500 |  | 39500 |
| Short Term : | Trend | Reversal |
| 11100-11380-11600 | | 10194 |
| Medium Term : | Trend | Reversal |
| 9500-8800-8000 | | 11600 |