Market Outlook
FRIDAY, JANUARY 08, 2021
Market Outlook (Closing) as on 08.01.2021
Market closed in Positive territory at 48,782.52 (+ 689.19)
TREND TOWARDS UPPER END OF CHANNEL:
ONE SHOULD BE CATIOUS AND BOOK PROFIT BOOK AT REGULAR INTERVELS IN THIS PHASE OF MARKET: TRAIL TILL IT REVERSES:
BANK NIFTY LOOKS TO OUTPERFORM IN SHORT TERM:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
MISSING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC AND NOT TO BE CARRIED AWAY IN THIS EUPH ORIC PHASE OF MARKET:
Market is achieving almost all targets as expected in rally with sharp speed. It made a high of 14367.30 levels on nifty & 48854.34 levels on sensex so far. One can expect market to trend towards upper end of channel as per chart attached towards higher levels targets in short term. One should be cautious and book profit at regular intervals in this phase of market. It’s clearly overextension of market going on across the board due to global liquidity. One should be very stock specific & not to be carried away in euphoric rally in market.
Market sharply reverses from lower levels & once again extending towards life time high. It made a low of 13130 levels on nifty & 44923.08 levels in short term. It has shaken out weak BULLhigher levelsS for short term trading perspectives in this sharp one day fall with high volatility. Although momentum is losing but market will extend further towards life time high once again towards short term targets levels. Trader should be stock specific & keep periodic profit booking in this phase of market.
It looks like final Wave-V of V from short term wave counts perspectives as per chart attached both on NIFTY/SENSEX. One can expect market to trend towards higher levels targets till it reverses. Its reaching almost towards upper end of channel is supporting this wave counts till proven otherwise.
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 slow & steady extending towards its life time high levels. It looks like Wave-V of 3 from overall wave count perspectives in short term. One can expect BANK NIFTY to outperform in this phase of rally in short term. 30893 is strong support for short term, till it holds one can expect market to trend towards 33000-33800 levels in short term. 25200 levels is strong support for overall bullish view on bank nifty, till it holds once can expect higher levels targets till 35200 levels in medium term.
14000/14500 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatile trend in short term. Close below short term reversal levels will lead to sharp sell off towards 13100-12800 levels on nifty & 44920-43580 levels on sensex in short term. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. 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 08.01.2021
Market closed in Positive territory at 48,782.52 (+ 689.19)TREND TOWARDS UPPER END OF CHANNEL:
ONE SHOULD BE CATIOUS AND BOOK PROFIT BOOK AT REGULAR INTERVELS IN THIS PHASE OF MARKET: TRAIL TILL IT REVERSES:
BANK NIFTY LOOKS TO OUTPERFORM IN SHORT TERM:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
MISSING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC AND NOT TO BE CARRIED AWAY IN THIS EUPH ORIC PHASE OF MARKET:
Market sharply reverses from lower levels & once again extending towards life time high. It made a low of 13130 levels on nifty & 44923.08 levels in short term. It has shaken out weak BULLhigher levelsS for short term trading perspectives in this sharp one day fall with high volatility. Although momentum is losing but market will extend further towards life time high once again towards short term targets levels. Trader should be stock specific & keep periodic profit booking in this phase of market.
It looks like final Wave-V of V from short term wave counts perspectives as per chart attached both on NIFTY/SENSEX. One can expect market to trend towards higher levels targets till it reverses. Its reaching almost towards upper end of channel is supporting this wave counts till proven otherwise.
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 slow & steady extending towards its life time high levels. It looks like Wave-V of 3 from overall wave count perspectives in short term. One can expect BANK NIFTY to outperform in this phase of rally in short term. 30893 is strong support for short term, till it holds one can expect market to trend towards 33000-33800 levels in short term. 25200 levels is strong support for overall bullish view on bank nifty, till it holds once can expect higher levels targets till 35200 levels in medium term.
14000/14500 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatile trend in short term. Close below short term reversal levels will lead to sharp sell off towards 13100-12800 levels on nifty & 44920-43580 levels on sensex in short term. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. 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 |
| 49300 |  | 47055 |
| Medium Term : | Trend | Reversal |
| 49900 | | 41048 |
| Short Term : | Trend | Reversal |
| 14600-14800 | | 13777 |
| Medium Term : | Trend | Reversal |
| 14950 | | 12020 |