Market Outlook
FRIDAY, JULY 17, 2018
Market Outlook (Closing) as on 17.07.2018
Market closed in positive territory at 36,519.96 (+ 196.19)
BREAKOUT FROM SHORT TERM CONSOLIDATION RANGE:
LOOKS LIKE END OF BROADER MARKET CORRECTION WITH ENDING DIGONAL PATTERN ON MIDCAP & SMALL CAP INDICES:
STRONG DIVERGENCE BETWEEN NIFTY/SENSEX MAIN INDICES & BROADER MARKET INDICES:
ANY KIND OF SHORT TERM VOLTALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Market closed 2nd concecutive week in positive territory. It finally managed to break short term consolidation range of past couple of weeks on upside as expected. It finally confirms wave-III of 5 on upside on main indices nifty & Sensex . It finally achieved my short term targets levels near recent high as expected earleir. It made a high of 11,071.40 levels so far in this rally. One can expect market to extend further on upside towards higher levels targets as mentioned below in short to medium term. Any kind of short term consolidation or correction is stock specific buying opportunity till short term reverses.
I am concluding end of wave-II of 5 as flat correction or consolidation of past couple of weeks on main indices nifty/Sensex as mentioned earlier. And main indices ( Nifty/Sensex) already confimed wave-III of 5 begining after break out from range. Sensex is the first index to make all time time high after 5 months of correction since january 2018. It made a all time high of around 36,739.88 levels during week.
There is still strong divergence is going on between Nifty/Sensex main indices & Broader Market in short term And we have seen sharp sell off particularly in broader market in near term. I feel this divergence is going to end soon And we will see strong rebound in broader market. These broader market indices has to catch up with main indices nifty/sensex & join this party of wave-5. This correction is opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives.
It also looks like End of medium term correction particularly midcap & small cap Indices with ending digonal pattern as per chart attached. One should also closely watchout broader market behavior at current levels to finally confirm the same. One should expect broader market to strongly rebound & Participate in rally with main indices Nifty & Sensex soon.
BANK NIFTY closed 2nd concecutive week in positive territory. It has also broken out of consolidation range. Its also extending on upside towards higher levels targets in short to medium term. It made a high of 27,153.10 levels so far in this rally. 26000 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets till 27700 levels in short term & further above 29600-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
10600/10800 & 11000/11200 levels is strong support & resistance levels respectively based on option open interest data for current month series expiry perspectives. By looking at current structure, I feel market is going to surpass all time high soon across all indices & this rally will have time wise consolidation rather than price wise correction in short term. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST & DAILY MACD both are in BUY supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 10300-10200 levels on nifty & 33600 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY & Its trading above both 20WESM & 40 WEMA . All Medium term Parameters are showing strength.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 UP & Medium term Trend is UP.
Trend
Market Outlook (Closing) as on 17.07.2018
Market closed in positive territory at 36,519.96 (+ 196.19)BREAKOUT FROM SHORT TERM CONSOLIDATION RANGE:
LOOKS LIKE END OF BROADER MARKET CORRECTION WITH ENDING DIGONAL PATTERN ON MIDCAP & SMALL CAP INDICES:
STRONG DIVERGENCE BETWEEN NIFTY/SENSEX MAIN INDICES & BROADER MARKET INDICES:
ANY KIND OF SHORT TERM VOLTALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
I am concluding end of wave-II of 5 as flat correction or consolidation of past couple of weeks on main indices nifty/Sensex as mentioned earlier. And main indices ( Nifty/Sensex) already confimed wave-III of 5 begining after break out from range. Sensex is the first index to make all time time high after 5 months of correction since january 2018. It made a all time high of around 36,739.88 levels during week.
There is still strong divergence is going on between Nifty/Sensex main indices & Broader Market in short term And we have seen sharp sell off particularly in broader market in near term. I feel this divergence is going to end soon And we will see strong rebound in broader market. These broader market indices has to catch up with main indices nifty/sensex & join this party of wave-5. This correction is opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives.
It also looks like End of medium term correction particularly midcap & small cap Indices with ending digonal pattern as per chart attached. One should also closely watchout broader market behavior at current levels to finally confirm the same. One should expect broader market to strongly rebound & Participate in rally with main indices Nifty & Sensex soon.
BANK NIFTY closed 2nd concecutive week in positive territory. It has also broken out of consolidation range. Its also extending on upside towards higher levels targets in short to medium term. It made a high of 27,153.10 levels so far in this rally. 26000 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets till 27700 levels in short term & further above 29600-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
10600/10800 & 11000/11200 levels is strong support & resistance levels respectively based on option open interest data for current month series expiry perspectives. By looking at current structure, I feel market is going to surpass all time high soon across all indices & this rally will have time wise consolidation rather than price wise correction in short term. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST & DAILY MACD both are in BUY supporting short term trend. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 10300-10200 levels on nifty & 33600 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY & Its trading above both 20WESM & 40 WEMA . All Medium term Parameters are showing strength.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 UP & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 38500-38600 |  | 34937 |
| Medium Term : | Trend | Reversal |
| 38200-38600 | | 29077 |
| Short Term : | Trend | Reversal |
| 11500-11600 | | 10557 |
| Medium Term : | Trend | Reversal |
| 12000-12200 | | 8968 |