Market Outlook
FRIDAY, MAY 21, 2021
Market Outlook (Closing) as on 21.05.2021
Market closed in Positive territory at 50.540.48 (+972.62)
BROKEN OUT OF SHORT TERM CONSOLIDATION:
TREND TOWARDS HIGHER LEVELS TARGETS: TRAIL TILL IT REVERSES:
BANK NIFTY, AUTO & IT WILL LEAD THE RALLY IN THIS PHASE OF MARKET:
MISSING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC AND NOT TO BE CARRIED AWAY WITH TOO MUCH LEVERAGE IN THIS EUPH ORIC PHASE OF MARKET:
Market finally broken out of short term consolidation range of last two months broadly between 14100-14200 to 14900-15100 levels on upside as expected. It managed to close of above resistance levels of around 15100 levels. One can expect market to trend towards higher levels targets in short to medium term as mentioned below till it reverses. One should but stock specific at current levels or any kind of decline or consolidation till it reverses. BANKS, AUTO & IT will lead the rally in short to medium term in this phase of market.
It looks like Final wave-V of 5 rally of extended Bull market from overall wave counts perspectives as per chart attached. One can expect market to trend towards higher levels targets in short to medium term till it reverses.
BANK NIFTY also looks like broken out of short term consolidation range as per chart attached. It also started final wave-V of 5 after around 20% correction in last 2 months from peak from overall wave counts perspectives as per chart attached. 32100 levels is strong support for short term, till it holds one can expect higher levels targets till tgt1-35200 & tgt2-36600 levels in short term. 30400 levels is strong support on bank nifty for medium term perspectives on bank nifty. One can expect higher levels target1-42000 & target2-46300 levels in medium term. BANK NIFTY will lead this phase of rally & going to outperform in short to medium term. One should keep exposure in Banks stocks in portfolio in this phase of market.
15000- 15500 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far based on option open interest data for expiry perspectives.
Momentum indicators Daily KST & Daily MACD both are in BUY supporting short term trend. Close & sustain below short term reversal levels will lead to sharp fall towards 47200-46000 levels on sensex & 14150-13600 levels on nifty in short term. One should be stock specific in this euphoric phase of market & follow trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL. 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 21.05.2021
Market closed in Positive territory at 50.540.48 (+972.62)BROKEN OUT OF SHORT TERM CONSOLIDATION:
TREND TOWARDS HIGHER LEVELS TARGETS: TRAIL TILL IT REVERSES:
BANK NIFTY, AUTO & IT WILL LEAD THE RALLY IN THIS PHASE OF MARKET:
MISSING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC AND NOT TO BE CARRIED AWAY WITH TOO MUCH LEVERAGE IN THIS EUPH ORIC PHASE OF MARKET:
It looks like Final wave-V of 5 rally of extended Bull market from overall wave counts perspectives as per chart attached. One can expect market to trend towards higher levels targets in short to medium term till it reverses.
BANK NIFTY also looks like broken out of short term consolidation range as per chart attached. It also started final wave-V of 5 after around 20% correction in last 2 months from peak from overall wave counts perspectives as per chart attached. 32100 levels is strong support for short term, till it holds one can expect higher levels targets till tgt1-35200 & tgt2-36600 levels in short term. 30400 levels is strong support on bank nifty for medium term perspectives on bank nifty. One can expect higher levels target1-42000 & target2-46300 levels in medium term. BANK NIFTY will lead this phase of rally & going to outperform in short to medium term. One should keep exposure in Banks stocks in portfolio in this phase of market.
15000- 15500 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far based on option open interest data for expiry perspectives.
Momentum indicators Daily KST & Daily MACD both are in BUY supporting short term trend. Close & sustain below short term reversal levels will lead to sharp fall towards 47200-46000 levels on sensex & 14150-13600 levels on nifty in short term. One should be stock specific in this euphoric phase of market & follow trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL. 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 |
| 51200-52400 |  | 48470 |
| Medium Term : | Trend | Reversal |
| 55800-57000 | | 47200 |
| Short Term : | Trend | Reversal |
| 15450-15800-16200 | | 14591 |
| Medium Term : | Trend | Reversal |
| 17500-18500 | | 14150 |