Market Outlook
MONDAY, JANUARY 18, 2021
Market Outlook (Closing) as on 18.01.2021
Market closed in negative territory at 48,564.27 (- 470.40)
CONCLUDING SHORT TERM REVERSAL: TRAIL TILL IT REVERSES:
SHARP PROFIT BOOKING FROM HIGHER LEVELS:
BE CATIOUS AT CURRENT LEVELS & EXPECT VOLATALITY 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 witnessing sharp profit booking from higher levels. It made a high of 14635.35 levels on nifty & 49795.15 levels on sensex so far in this rally. It looks like end of recent upward rally & concluding short term reversal. One can expect profit booking in market in short term. One should be cautious & book profit & exit in any kind of pull back till short term reverses.
It looks like end of 5 wave advance rally near recent high as per chart attached. It looks like possibility of short to medium term correction in market of entire rally from bottom of March 2020. One should be cautious & book profit at current levels of market. It will remain volatile ahead of budget events in short term.
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 also looks like completed one set of 5 wave advance rally as per chart attached. One can expect Bank nifty to correct in near term. 32862 levels is strong resistance/reversal levels for short term. One can expect lower levels taregt1-29000 & target2-27700 levels in near term. 25200 levels is strong support for overall bullish view on bank nifty.
14000/14500 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far. Market will remain volatile ahead of budget events next month.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. Close above short term reversal levels will lead to extension of rally further towards 14800-14950 levels on nifty & 49900 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 DOWN & Medium term Trend is UP
Trend
Market Outlook (Closing) as on 18.01.2021
Market closed in negative territory at 48,564.27 (- 470.40)CONCLUDING SHORT TERM REVERSAL: TRAIL TILL IT REVERSES:
SHARP PROFIT BOOKING FROM HIGHER LEVELS:
BE CATIOUS AT CURRENT LEVELS & EXPECT VOLATALITY 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:
It looks like end of 5 wave advance rally near recent high as per chart attached. It looks like possibility of short to medium term correction in market of entire rally from bottom of March 2020. One should be cautious & book profit at current levels of market. It will remain volatile ahead of budget events in short term.
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 also looks like completed one set of 5 wave advance rally as per chart attached. One can expect Bank nifty to correct in near term. 32862 levels is strong resistance/reversal levels for short term. One can expect lower levels taregt1-29000 & target2-27700 levels in near term. 25200 levels is strong support for overall bullish view on bank nifty.
14000/14500 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far. Market will remain volatile ahead of budget events next month.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. Close above short term reversal levels will lead to extension of rally further towards 14800-14950 levels on nifty & 49900 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 DOWN & Medium term Trend is UP
Trend
| Short Term : | Trend | Reversal |
| 44900-43600-42300 |  | 49638 |
| Medium Term : | Trend | Reversal |
| 49900 |  | 41048 |
| Short Term : | Trend | Reversal |
| 13100-12800-12400 | | 14618 |
| Medium Term : | Trend | Reversal |
| 14950 | | 12020 |