Market Outlook
WEDNESDAY, JANUARY 20, 2021
Market Outlook (Closing) as on 20.01.2021
Market closed in Positive territory at 49,792.12 (+ 393.83)
EXTENDING FURTHER IN SHORT TERM: TRAIL TILL IT REVERSES & BOOK PROIFT AT REGULAR INTERVELS IN THIS PHASE OF MARKET:
TREND TOWARDS FINAL TARGETS LEVELS FOR SHORT TERM:
BE CATIOUS AND NOT TO BE TOO MUCH LEVERAGE 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 extending further after 2 days of correction. It made Weaker Bulls out in this correction. It made a low of 48403.97 levels in sensex & 14222.80 levels on nifty. It looks like market to extend towards final targets levels as mentioned below in short term till it reverses. One should be stock specific & book profit at regular intervals in this phase of market.
It looks like final wave-5 of rally as per chart attached, as market is extending further. One should be cautious & not be too much leverage in this phase 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 extending further in short term as per chart attached. 31690 levels are strong support/reversal levels for short term. One can expect rally to extend further for final levels targets of 33300-33400 levels in near term. 25200 levels is strong support for overall bullish view on bank nifty.
14000/15000 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far.
Momentum indicators Daily KST & Daily MACD both are in SELL indicating volatile trend for short term. Close below short term reversal levels will lead to sharp correction towards 13700-13100 levels on nifty & 47000-44900 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 UP & Medium term Trend is UP
Trend
Market Outlook (Closing) as on 20.01.2021
Market closed in Positive territory at 49,792.12 (+ 393.83)EXTENDING FURTHER IN SHORT TERM: TRAIL TILL IT REVERSES & BOOK PROIFT AT REGULAR INTERVELS IN THIS PHASE OF MARKET:
TREND TOWARDS FINAL TARGETS LEVELS FOR SHORT TERM:
BE CATIOUS AND NOT TO BE TOO MUCH LEVERAGE 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 final wave-5 of rally as per chart attached, as market is extending further. One should be cautious & not be too much leverage in this phase 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 extending further in short term as per chart attached. 31690 levels are strong support/reversal levels for short term. One can expect rally to extend further for final levels targets of 33300-33400 levels in near term. 25200 levels is strong support for overall bullish view on bank nifty.
14000/15000 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far.
Momentum indicators Daily KST & Daily MACD both are in SELL indicating volatile trend for short term. Close below short term reversal levels will lead to sharp correction towards 13700-13100 levels on nifty & 47000-44900 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 UP & Medium term Trend is UP
Trend
| Short Term : | Trend | Reversal |
| 50500-50800 |  | 48403 |
| Medium Term : | Trend | Reversal |
| 50500-50800 | | 41048 |
| Short Term : | Trend | Reversal |
| 14900-15050 | | 14222 |
| Medium Term : | Trend | Reversal |
| 14900-15050 | | 12020 |