Market Outlook
FRIDAY, JULY 22, 2022
Market Outlook (Closing) as on 22.07.2022
Market closed in Positive territory at 56,072.23 (+ 390.28)
FIRST SHORT TERM TARGET ACHIEVED: TRAILING STOP LOSS LEVELS
PULL BACK RALLY TO CONTINUE FURTHER TOWARDS REVISED SECOND TARGETS LEVELS IN SHORT TERM:
DERIVATIVES OPEN INTEREST DATA INDICATING BULLISH STRUCTURE TO CONTINUE FURTHER IN SHORT TERM
VOLTALITY TO CONTINUE IN SHORT TERM:
MEDIUM TERM VIEW STILL REMAINS DOWN:
WORLD MARKET WITH SOFTEN COMMODITIES PRICE INDIATING SHORT TERM PULLS BACK RALLY FIRST TILL IT REVERSES:
MEDIUM TO LONG TERM INVESTOR CAN USE THIS CORRECTION FOR STOCK SPECIFIC BUYING OPPORTUNITY: TRAIL TILL IT REVERSES:
Market extending pull back rally in short term as expected. It has almost achieved my short term targets levels near recent high as expected. It made a high of 55738.49 levels on sensex & 16752.52 levels on nifty so far in this rally. 16800 levels on nifty & 56500 levels on sensex is resistance zone in short term. We may see some kind of volatility in near term around these levels but it looks like market will extend pull back rally further towards revised higher levels targets as mentioned below in short term. One should BUY stock specific at current levels or any kind of decline or consolidation till short term reverses.
It looks some kind of Wave-X counter trend pull back rally in short term as mentioned earlier from wave count perspectives in the form of retracement till short term reverses. World Market (Particularly USA) with softening commodities prices also indicating the same in near term. Although Medium term outlook for market still remains negative as mentioned below. We are in some Time wise corrective phase with stock rotation in the current structure of Market. We may see such time wise consolidation till December 22 to march 23 (i.e. - coming 6/8 Months) before finally bottoming out for medium term perspectives.
Bank nifty also achieved my first short term targets levels near recent high. It made a high of 36823.45 levels so far in this pull back rally. It looks like possibility to extend this pull back rally further towards revised higher levels targets in short term. 34300 is strong support for bank nifty in short term, till it holds above it, one can expect target1-37800 & target2-38800 levels in this pull back rally in short term. It looks like Banking will outperform in this rally in short term. One should BUY for trading perspectives at current levels or any kind of decline or consolation till short term reverses. Medium term outlook for bank nifty still remains negative till it trades below 39500 levels & expecting targets in the range of 30800-30000 levels in medium term. It also looks like time wise corrective phase on bank nifty for medium term perspectives.
16000/16500- 17000 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far from expiry perspectives. Derivatives data indicating Short covering by FII indicating bullish sign in short term . Trader should book profit at regular intervals as medium term outlook for the market still remains negative.
Momentum indicators Daily KST & Daily MACD both are in BUY supporting short term trend. Trader should BUY Stock specific in this pullback rally while Investor should use this corrective phase to buy stock specific in tranches in disciplined manner from long term perspectives.
Momentum Perspective:
Weekly KST & Weekly MACD both came in to BUY. Market closed above 20WESM & 40 WEMA. One should watch out for price Reversal to finally conclude Medium term Reversal
Conclusion:
Short Term Trend is UP & Medium term Trend is Down
Trend
Market Outlook (Closing) as on 22.07.2022
Market closed in Positive territory at 56,072.23 (+ 390.28)FIRST SHORT TERM TARGET ACHIEVED: TRAILING STOP LOSS LEVELS
PULL BACK RALLY TO CONTINUE FURTHER TOWARDS REVISED SECOND TARGETS LEVELS IN SHORT TERM:
DERIVATIVES OPEN INTEREST DATA INDICATING BULLISH STRUCTURE TO CONTINUE FURTHER IN SHORT TERM
VOLTALITY TO CONTINUE IN SHORT TERM:
MEDIUM TERM VIEW STILL REMAINS DOWN:
WORLD MARKET WITH SOFTEN COMMODITIES PRICE INDIATING SHORT TERM PULLS BACK RALLY FIRST TILL IT REVERSES:
MEDIUM TO LONG TERM INVESTOR CAN USE THIS CORRECTION FOR STOCK SPECIFIC BUYING OPPORTUNITY: TRAIL TILL IT REVERSES:
It looks some kind of Wave-X counter trend pull back rally in short term as mentioned earlier from wave count perspectives in the form of retracement till short term reverses. World Market (Particularly USA) with softening commodities prices also indicating the same in near term. Although Medium term outlook for market still remains negative as mentioned below. We are in some Time wise corrective phase with stock rotation in the current structure of Market. We may see such time wise consolidation till December 22 to march 23 (i.e. - coming 6/8 Months) before finally bottoming out for medium term perspectives.
Bank nifty also achieved my first short term targets levels near recent high. It made a high of 36823.45 levels so far in this pull back rally. It looks like possibility to extend this pull back rally further towards revised higher levels targets in short term. 34300 is strong support for bank nifty in short term, till it holds above it, one can expect target1-37800 & target2-38800 levels in this pull back rally in short term. It looks like Banking will outperform in this rally in short term. One should BUY for trading perspectives at current levels or any kind of decline or consolation till short term reverses. Medium term outlook for bank nifty still remains negative till it trades below 39500 levels & expecting targets in the range of 30800-30000 levels in medium term. It also looks like time wise corrective phase on bank nifty for medium term perspectives.
16000/16500- 17000 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far from expiry perspectives. Derivatives data indicating Short covering by FII indicating bullish sign in short term . Trader should book profit at regular intervals as medium term outlook for the market still remains negative.
Momentum indicators Daily KST & Daily MACD both are in BUY supporting short term trend. Trader should BUY Stock specific in this pullback rally while Investor should use this corrective phase to buy stock specific in tranches in disciplined manner from long term perspectives.
Momentum Perspective:
Weekly KST & Weekly MACD both came in to BUY. Market closed above 20WESM & 40 WEMA. One should watch out for price Reversal to finally conclude Medium term ReversalConclusion:
Short Term Trend is UP & Medium term Trend is Down
Trend
| Short Term : | Trend | Reversal |
| 57800 |  | 53450 |
| Medium Term : | Trend | Reversal |
| 47200-46500 |  | 60846 |
| Short Term : | Trend | Reversal |
| 17300/17400 | | 15850 |
| Medium Term : | Trend | Reversal |
| 14200-13700 | | 18115 |