Market Outlook
FRIDAY, MARCH 09, 2018
Market Outlook (Closing) as on 09.03.2018
Market closed in negative territory at 33,307.14 (- 44.43)
HEAD & SHOULDER BREAK DOWN:
SLOW BUT STEADY HEADING SOUTHWARD TOWARDS SHORT TERM TARGETS LEVELS: RESISTANCE AT HIGHER LEVELS DUE TO LACK OF BUYING
WAVE-IV CORRECTION IS STILL ON: ANY KIND OF PULL BACK RALLY IS USE FOR SELL OR EXIT FROM TRADING PERSPECTIVES:
ANY KIND OF SHORT TERM CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR MEDIUM TO LONG TERM INVESTMENT PERSPECTIVES:
Market completed pull back rally & reversed from first short term targets levels with out more extension as expected earlier. It made a high of 10,631.65 levels on nifty & 34,610.79 levels on sensex in this pull back rally. After that It has further started southward journey of, on ongoing correction & broken crucial neck line support of H&S pattern around 10300-10350 levels on nifty. One can expect market to trend towards lower levels targets as mentioned below in short term before bottoming out.Trader should use any kind of pull back rally to sell or exit till short term reverses.
It closed 2nd consecutive week in negative territory. It looks like wave-(Y) correction is going on from wave count perspectives as per chart attached. Any kind of pull back rally towards neckline is selling opportunity till short term reverses. On the other hand, 10,070- 9800 levels is crucial cluster of support zone near lower end of channel to watch out for any kind of short term bottom formation .
It looks like TIME wise wave-IV correction & will last it at least till March end before final wave-V UP begins as per my expectation.Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
BANK NIFTY also closed weekly in negative territory. Its relatively more under performing then other indices. It has completed wave-X pull back rally near recent high of 25,780 levels in short term. One can expect lower levels target1-23900, target2-23600 & in extreme case target3-23300 levels in this wave-IV correction till it reverses in short term.25,780 is now short term reversal levels on bank nifty.
10000 & 10500 levels is strong support & resistance levels respectively based on option open interest data so far for this month series. Market will remain very volatile in this corrective phase.
Momentum indicators Daily KST & daily MACD both are in SELL supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close above short term reversal levels will finally confirm further rally towards medium term higher levels targets.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL & also closed below 20 WSMA. Its trading above 40 WEMA . Medium term Parameters are showing weakness but one need to watch out price confirmation to conclude medium term reversal till that One can expect market to trend towards higher level targets in medium term. Any kind of short term correction or consolidation in buying opportunity for medium to long term Investment perspectives till it reverses.
Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP.
Trend
Market Outlook (Closing) as on 09.03.2018
Market closed in negative territory at 33,307.14 (- 44.43)HEAD & SHOULDER BREAK DOWN:
SLOW BUT STEADY HEADING SOUTHWARD TOWARDS SHORT TERM TARGETS LEVELS: RESISTANCE AT HIGHER LEVELS DUE TO LACK OF BUYING
WAVE-IV CORRECTION IS STILL ON: ANY KIND OF PULL BACK RALLY IS USE FOR SELL OR EXIT FROM TRADING PERSPECTIVES:
ANY KIND OF SHORT TERM CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR MEDIUM TO LONG TERM INVESTMENT PERSPECTIVES:
It closed 2nd consecutive week in negative territory. It looks like wave-(Y) correction is going on from wave count perspectives as per chart attached. Any kind of pull back rally towards neckline is selling opportunity till short term reverses. On the other hand, 10,070- 9800 levels is crucial cluster of support zone near lower end of channel to watch out for any kind of short term bottom formation .
It looks like TIME wise wave-IV correction & will last it at least till March end before final wave-V UP begins as per my expectation.Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
BANK NIFTY also closed weekly in negative territory. Its relatively more under performing then other indices. It has completed wave-X pull back rally near recent high of 25,780 levels in short term. One can expect lower levels target1-23900, target2-23600 & in extreme case target3-23300 levels in this wave-IV correction till it reverses in short term.25,780 is now short term reversal levels on bank nifty.
10000 & 10500 levels is strong support & resistance levels respectively based on option open interest data so far for this month series. Market will remain very volatile in this corrective phase.
Momentum indicators Daily KST & daily MACD both are in SELL supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close above short term reversal levels will finally confirm further rally towards medium term higher levels targets.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL & also closed below 20 WSMA. Its trading above 40 WEMA . Medium term Parameters are showing weakness but one need to watch out price confirmation to conclude medium term reversal till that One can expect market to trend towards higher level targets in medium term. Any kind of short term correction or consolidation in buying opportunity for medium to long term Investment perspectives till it reverses.Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 32500-32000 |  | 34611 |
| Medium Term : | Trend | Reversal |
| 38200-38500 |  | 29077 |
| Short Term : | Trend | Reversal |
| 10000-9800 | | 10632 |
| Medium Term : | Trend | Reversal |
| 12000-12200 | | 8968 |