Market Outlook
THURSAY, DECEMBER 21, 2020
Market Outlook (Closing) as on 21.12.2020
Market closed in negative territory at 45,553.96 (- 1406.73)
SHARP PROFIT BOOKING FROM SHORT TERM TARGETS LEVELS:
LOOKS LIKE WAVE-IV SHORT TERM CORRECTION: TRAIL TILL IT REVERSES:
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 IN THIS PHASE OF MARKET:
Market witnessed sharp fall in way of profit booking in a single day from higher levels. It made a high of 13777.50 levels on nifty & 47055.99 levels on sensex. It has achieved my short term targets levels on both nifty & Sensex near recent high as expected earlier. One can expect market to trend towards short term targets levels in this correction till it reverses. One should be stock specific & keep periodic profit booking in this phase of market.
It looks like Wave-iv of 5 short term correction from over all wave count perspectives as per chart attached. One can expect market to correct towards short term targets levels in this wave-iv correction. It still doesn’t look to me TOP OUT of market till we get further evidences.
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 witnessed sharp profit booking from higher levels. It also looks like wave-IV correction on bank nifty as per chart attached. 30608 levels is short term reversal/resistance levels. One can expect bank nifty to correct towards 28500/27700 levels till it holds below these levels. 25200 levels is strong support for overall bullish view on bank nifty, till it holds once can expect higher levels targets till 32600 levels in medium term.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. Close above short term reversal levels will confirm final levels targets as mentioned below towards medium term.
13000/13500 is strong support & Resistance levels respectively based on option open interest data for current month series so far.
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 21.12.2020
Market closed in negative territory at 45,553.96 (- 1406.73)SHARP PROFIT BOOKING FROM SHORT TERM TARGETS LEVELS:
LOOKS LIKE WAVE-IV SHORT TERM CORRECTION: TRAIL TILL IT REVERSES:
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 IN THIS PHASE OF MARKET:
It looks like Wave-iv of 5 short term correction from over all wave count perspectives as per chart attached. One can expect market to correct towards short term targets levels in this wave-iv correction. It still doesn’t look to me TOP OUT of market till we get further evidences.
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 witnessed sharp profit booking from higher levels. It also looks like wave-IV correction on bank nifty as per chart attached. 30608 levels is short term reversal/resistance levels. One can expect bank nifty to correct towards 28500/27700 levels till it holds below these levels. 25200 levels is strong support for overall bullish view on bank nifty, till it holds once can expect higher levels targets till 32600 levels in medium term.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. Close above short term reversal levels will confirm final levels targets as mentioned below towards medium term.
13000/13500 is strong support & Resistance levels respectively based on option open interest data for current month series so far.
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 |
| 44000-43500 |  | 47055 |
| Medium Term : | Trend | Reversal |
| 48000 |  | 41048 |
| Short Term : | Trend | Reversal |
| 12900-12800/12700 | | 13777 |
| Medium Term : | Trend | Reversal |
| 13900-14200 | | 12020 |