Market Outlook
THURSDAY, OCTOBER 08, 2020
Market Outlook (Closing) as on 08.10.2020
Market closed in positive territory at 40,182.67 (+ 303.72)
SHORT TERM TARGETS ACHIEVED: TRAIL TILL IT REVERSES:
CONCLUDING MISSING WAVE-V OF PREVIOUS BULL MARKET:
KEEPING VERY TIGHT MEDIUM TERM REVERSAL TO TRAIL THIS RALLY:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
Market achieved short term targets levels as expected near recent high. We have seen profit booking from higher levels. It made a high 11905.70 on nifty & 40,467.20 levels on sensex today. One can buy stock specific in any kind of decline or consolidation till short term reverses. In this phase of market, one should be very stock specific in trading & Investment perspectives.
Market finally closed above medium term reversal levels. I finally concluding it as MISSING WAVE-V OF PREVIOUS BULL MARKET from overall wave count perspectives. We have seen recent rally is driven by selected few stocks. It’s not good sign at current levels of market & not giving confidence to conclude fresh BULL Market. It looks like “W” shape recovery or pull back rally like 1998-2003 structure, In that case, one can’t rule out sharp correction from higher levels. So one should be very stock specific in this phase of market.
BANK NIFTY is underperforming in this rally. It’s showing divergence with main indices. It’s clearly indicating weaker market in spite of being further higher levels on main indices. 21800 is short term reversal levels ,till it holds one can expect higher levels targets in the range of 24200-25200 levels in short term. Sustain above 25200 levels will further confirm higher levels targets till 26800 levels in medium term. 21100 is final level to conclude medium term reversal on bank nifty.
11500 & 12000 levels is crucial support & Resistance levels respectively based on option open interest data for current month series. I have kept very tight medium term reversal levels to trail this rally.
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 above short term reversal levels will lead to sharp sell off towards lower levels targets of 10800/10550 levels on nifty & 36495-35877 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 08.10.2020
Market closed in positive territory at 40,182.67 (+ 303.72)SHORT TERM TARGETS ACHIEVED: TRAIL TILL IT REVERSES:
CONCLUDING MISSING WAVE-V OF PREVIOUS BULL MARKET:
KEEPING VERY TIGHT MEDIUM TERM REVERSAL TO TRAIL THIS RALLY:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
Market finally closed above medium term reversal levels. I finally concluding it as MISSING WAVE-V OF PREVIOUS BULL MARKET from overall wave count perspectives. We have seen recent rally is driven by selected few stocks. It’s not good sign at current levels of market & not giving confidence to conclude fresh BULL Market. It looks like “W” shape recovery or pull back rally like 1998-2003 structure, In that case, one can’t rule out sharp correction from higher levels. So one should be very stock specific in this phase of market.
BANK NIFTY is underperforming in this rally. It’s showing divergence with main indices. It’s clearly indicating weaker market in spite of being further higher levels on main indices. 21800 is short term reversal levels ,till it holds one can expect higher levels targets in the range of 24200-25200 levels in short term. Sustain above 25200 levels will further confirm higher levels targets till 26800 levels in medium term. 21100 is final level to conclude medium term reversal on bank nifty.
11500 & 12000 levels is crucial support & Resistance levels respectively based on option open interest data for current month series. I have kept very tight medium term reversal levels to trail this rally.
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 above short term reversal levels will lead to sharp sell off towards lower levels targets of 10800/10550 levels on nifty & 36495-35877 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 |  | 38235 |
| Medium Term : | Trend | Reversal |
| 43000 | | 37544 |
| Short Term : | Trend | Reversal |
| 12430 | | 11300 |
| Medium Term : | Trend | Reversal |
| 12650-12900 | | 11100 |