Market Outlook
FRIDAY, NOVEMBER 06, 2020
Market Outlook (Closing) as on 06.11.2020
Market closed in positive territory at 41,893.06 (+ 552.90)
TREND TOWARDS SHORT TERM TARGETS LEVELS:
SHARP REBOUND FROM LOWER END SUPPORT LEVELS:
STRONG BREAK OUT FROM SHORT TERM CONSOLIDATION:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
MIISING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
Market managed to find support near lower end of support zone & sharply rebound & broken short term consolidation range on upside. It closed weekly in positive territory. One can expect market to trend towards higher levels targets as expected in short term till it reverses. One should buy stock specific at current levels or any kind of decline or consolidation phase.
We are conclusively progressing in Wave-III of 5 from overall wave counts perspectives as per chart attached. One can expect market to trend towards higher levels targets as mentioned below in short to medium term. It’s now conclusion of missing Wave-V of bull market from medium term perspectives as per chart attached as market is trading above 11800 levels on nifty & broken this consolidation range on upside.
It still looks like “W” shape recovery or rally like 1998-2003 structure. And it’s missing Wave-V of higher degree from wave count perspectives. So one can’t rule out sharp correction, once this rally completes, towards further lower levels targets towards 2019 lows or retracement of entire rally from March 2019 lows. So one should be very stock specific in this phase of market.
BANK NIFTY is outperforming in this rally. It has managed to find support around 23600 levels till it holds one can expect higher levels target1- 27800 & taregt2-29200 levels. 23600 is final level to conclude medium term reversal on bank nifty.
Momentum indicators Daily KST & 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. Close below short term reversal levels will lead to sharp sell off towards lower levels targets of 11535/10800 levels on nifty & 39240-36495 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in SELL. Market is still closed above 20WESM & 40 WEMA. One should wait for price reversal to finally conclude medium term reversal.
Conclusion:
Short Term Trend is UP & Medium term Trend is UP
Trend
Market Outlook (Closing) as on 06.11.2020
Market closed in positive territory at 41,893.06 (+ 552.90)TREND TOWARDS SHORT TERM TARGETS LEVELS:
SHARP REBOUND FROM LOWER END SUPPORT LEVELS:
STRONG BREAK OUT FROM SHORT TERM CONSOLIDATION:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
MIISING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
We are conclusively progressing in Wave-III of 5 from overall wave counts perspectives as per chart attached. One can expect market to trend towards higher levels targets as mentioned below in short to medium term. It’s now conclusion of missing Wave-V of bull market from medium term perspectives as per chart attached as market is trading above 11800 levels on nifty & broken this consolidation range on upside.
It still looks like “W” shape recovery or rally like 1998-2003 structure. And it’s missing Wave-V of higher degree from wave count perspectives. So one can’t rule out sharp correction, once this rally completes, towards further lower levels targets towards 2019 lows or retracement of entire rally from March 2019 lows. So one should be very stock specific in this phase of market.
BANK NIFTY is outperforming in this rally. It has managed to find support around 23600 levels till it holds one can expect higher levels target1- 27800 & taregt2-29200 levels. 23600 is final level to conclude medium term reversal on bank nifty.
Momentum indicators Daily KST & 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. Close below short term reversal levels will lead to sharp sell off towards lower levels targets of 11535/10800 levels on nifty & 39240-36495 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in SELL. Market is still closed above 20WESM & 40 WEMA. One should wait for price reversal to finally conclude medium term reversal.Conclusion:
Short Term Trend is UP & Medium term Trend is UP
Trend
| Short Term : | Trend | Reversal |
| 42270-44200 |  | 40656 |
| Medium Term : | Trend | Reversal |
| 44900-47000 | | 39242 |
| Short Term : | Trend | Reversal |
| 12430-12850 | | 11920 |
| Medium Term : | Trend | Reversal |
| 13200-13600 | | 11535 |