Market Outlook
FRIDAY, MAY 22, 2020
Market Outlook (Closing) as on 22.05.2020
Market closed in negative territory at 30672.59 (- 260.31)
3rd WEEKLY NEGATIVE CLOSE:
EXTENDING TOWARDS LOWER LEVELS TARGETS: TRAILTILL IT REVERSES:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
WAVE-II BEAR MARKET CORRECTION: EXIT IN PULL BACK RALLY TILL MEDIUM TERM REVERSES:
Market has given 3rd weekly negative close. Its slow but steady extending towards lower levels as expected. It made a low of 8806.75 levels & 29968.45 levels so far during week. We can expect further lower levels targets as mentioned below in this correction till short term trend reverses. Trader should be stock specific & trail till it reverses.
It looks like end of either wave-IV or wave-X Pullback rally. My preferred one is end of wave-IV as of now as per chart attached. One can expect lower levels targets further as mentioned below in this correction in short to medium term.
BANK NIFTY is underperforming & showing more weakness. It made a low of 17005.95 so far during the week. It also closed 3rd week in negative territory. 20200 levels is short term reversal levels, till it trades below it one can expect lower levels targets till 16000-15500 levels in short term. 26650 levels is crucial medium term reversal levels for bank nifty, till it holds one can expect lower levels targets till 13400-13200 levels in medium term.
9000 & 9300/9500 levels is crucial support & Resistance levels based on option open interest data for expiry perspectives next week. Any kind of pull back rally is stock specific selling opportunity as medium term trend is still down.
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.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in SELL. Market is closed below 20WESM & 40 WEMA. Majority of indicators with Price has confirmed medium term reversal.
Conclusion:
Short Term Trend is DOWN & Medium term Trend is DOWN.
Trend
Market Outlook (Closing) as on 22.05.2020
Market closed in negative territory at 30672.59 (- 260.31)3rd WEEKLY NEGATIVE CLOSE:
EXTENDING TOWARDS LOWER LEVELS TARGETS: TRAILTILL IT REVERSES:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
WAVE-II BEAR MARKET CORRECTION: EXIT IN PULL BACK RALLY TILL MEDIUM TERM REVERSES:
It looks like end of either wave-IV or wave-X Pullback rally. My preferred one is end of wave-IV as of now as per chart attached. One can expect lower levels targets further as mentioned below in this correction in short to medium term.
BANK NIFTY is underperforming & showing more weakness. It made a low of 17005.95 so far during the week. It also closed 3rd week in negative territory. 20200 levels is short term reversal levels, till it trades below it one can expect lower levels targets till 16000-15500 levels in short term. 26650 levels is crucial medium term reversal levels for bank nifty, till it holds one can expect lower levels targets till 13400-13200 levels in medium term.
9000 & 9300/9500 levels is crucial support & Resistance levels based on option open interest data for expiry perspectives next week. Any kind of pull back rally is stock specific selling opportunity as medium term trend is still down.
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.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in SELL. Market is closed below 20WESM & 40 WEMA. Majority of indicators with Price has confirmed medium term reversal.Conclusion:
Short Term Trend is DOWN & Medium term Trend is DOWN.
Trend
| Short Term : | Trend | Reversal |
| 25500-24400 |  | 32846 |
| Medium Term : | Trend | Reversal |
| 22494-21200 | | 36100 |
| Short Term : | Trend | Reversal |
| 8400-8000-7500 | | 9584 |
| Medium Term : | Trend | Reversal |
| 6800-6300 | | 10691 |