Market Outlook
FRIDAY, MAY 18, 2018
Market Outlook (Closing) as on 12.05.2018
Market closed in negative territory at 34,848.30 (- 300.82)
WAVE-II CORRECTION ON WITH WEEKLY NEGATIVE CLOSE:
ANY KIND OF SHORT TERM VOLATALITY/ CORRECTION OR CONSOLIDATION IS BUYING OPPORTUNITY: TRAIL TILL IT REVERSES:
ANY KIND OF SHORT TERM CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Market was showing sign of extension last week but failed to sustain at higher levels. It made a high of 10,929.20 levels on nifty & 35993.53 levels on sensex during week. It faced resistance & Profit booking at higher levels & closed weekly in negative territory at the end of weekly trading session. It looks like wave-II correction as preffered wave count at current levels of market. Any kind of decline or short term consolidation is stock specific buying opportunity till short term reverses. One can expect higher levels targets as mentioend below in short to medium term.
It looks like wave-II Correction possiblity as preffered wave count as per chart attached as of now. Altenatively, If its turned out to be wave-X rally, then we can see one sharp price wsie correction before resuming final up trend towards higher levels targets as mentioend below in medium term.
BANK NIFTY closed weekly in negative territory. Its outperforming at current levels of market. It made a high of 26,926.70 levels so far in this rally. It looks like more clear bullish set up of either wave-ii or wave-iv correction as per chart attached.One can expect higher levels targets around 27700 levels till it holds crucial support of 24700 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.
Broader market is underperforming at current levels of market. It has to participate in this rally to get more clarity about end of short term correction or consolidation. One should closely watchout broader makret behavior to take furhter clue of short term trend of market.
10500 & 11000 levels is strong support & resistance levels range respectively based on option open interest data so far for current month series. Market will remain very volatile ahead of Result season this month. By looking at current structure, I feel market is going to surpass all time high soon on main 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 are in sell indicating volatality to continue in short term. 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 9950-9800 levels on nifty & 32400-31800 levels on sensex in short term.
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 UP & Medium term Trend is UP.
Trend
Market Outlook (Closing) as on 12.05.2018
Market closed in negative territory at 34,848.30 (- 300.82)WAVE-II CORRECTION ON WITH WEEKLY NEGATIVE CLOSE:
ANY KIND OF SHORT TERM VOLATALITY/ CORRECTION OR CONSOLIDATION IS BUYING OPPORTUNITY: TRAIL TILL IT REVERSES:
ANY KIND OF SHORT TERM CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
It looks like wave-II Correction possiblity as preffered wave count as per chart attached as of now. Altenatively, If its turned out to be wave-X rally, then we can see one sharp price wsie correction before resuming final up trend towards higher levels targets as mentioend below in medium term.
BANK NIFTY closed weekly in negative territory. Its outperforming at current levels of market. It made a high of 26,926.70 levels so far in this rally. It looks like more clear bullish set up of either wave-ii or wave-iv correction as per chart attached.One can expect higher levels targets around 27700 levels till it holds crucial support of 24700 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.
Broader market is underperforming at current levels of market. It has to participate in this rally to get more clarity about end of short term correction or consolidation. One should closely watchout broader makret behavior to take furhter clue of short term trend of market.
10500 & 11000 levels is strong support & resistance levels range respectively based on option open interest data so far for current month series. Market will remain very volatile ahead of Result season this month. By looking at current structure, I feel market is going to surpass all time high soon on main 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 are in sell indicating volatality to continue in short term. 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 9950-9800 levels on nifty & 32400-31800 levels on sensex in short term.
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 UP & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 36100-36500 |  | 33700 |
| Medium Term : | Trend | Reversal |
| 38200-38500 | | 29077 |
| Short Term : | Trend | Reversal |
| 11000-11200 | | 10279 |
| Medium Term : | Trend | Reversal |
| 12000-12200 | | 8968 |