Market Outlook
FRIDAY, OCTOBER 22, 2021
Market Outlook (Closing) as on 22.10.2021
Market closed in negative territory at 60,821.62 (-101.88)
PROFIT BOOKING FROM HIGHER LEVELS:
CONCLUDING WAVE-IV SHORT TERM CORRECTION WITH WEEKLY NEGATIVE CLOSE:
HEAVY RETAIL NET LONG OPEN INTEREST POSITION WILL CREATE HIGH STOCK SPECIFIC VOLATALITY IN SHORT TERM:
BE STOCK SPECIFIC & KEEP PERIODIC PROFIT BOOKING AT THESE LEVELS MAREKT:
: BE LIGHT & LESS LEVERAGE AT THESE LEVELS OF MARKET.
Market is witnessing profit booking after achieving short term targets levels as expected earlier. It made a high of 18604.45 levels nifty & 62245.43 levels in sensex. It closed 4th consecutive day in negative territory & first weekly in negative territory, confirming possibility of wave-IV correction in short term. One can expect sharp correction in terms of profit booking in near term. One should be cautious & be stock specific in trading position & not to be heavily leveraged at these levels of market. One can expect market to trend towards lower levels targets in short term till it reverses. Alternatively, it may trend or consolidate in the range of 17500-18500 levels in short term in case of time wise correction.
It looks like we are in wave-(iv) of V of 5 short term correction from overall wave count perspectives as per chart attached. One can expect market to fall first before heading towards higher levels targets as mentioned below in medium term.16900 is support/ reversal levels on nifty & 56300 levels on sensex for medium term perspectives.
BANK NIFTY Out performed as expected & continues to outperform in short term. We can see some kind of profit booking or wave-IV consolidation in bank nifty in short term. 38500-37800 levels is strong support or short term reversal levels for bank nifty till 37800 levels holds short term trend for bank nifty remains up & one can expect higher levels targets till 41500-42000 levels in short term. 36500 levels is strong support on bank nifty for medium term perspectives on bank nifty till it holds one can expect higher levels targets till 44000 levels in medium term.
17500 & 18500 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. Market will remain volatile ahead of expiry next week. Retail open interest position net long is at very high levels that will cause high stock specific volatility in market in short term. So be stock specific & Keep periodic profit booking at current levels of market.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. 18460 levels on nifty & 61880 levels on sensex is crucial reversal levels to finally conclude end of short term correction at current levels of market.
Momentum Perspective:
Weekly KST & WEEKLY MACD 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 22.10.2021
Market closed in negative territory at 60,821.62 (-101.88)PROFIT BOOKING FROM HIGHER LEVELS:
CONCLUDING WAVE-IV SHORT TERM CORRECTION WITH WEEKLY NEGATIVE CLOSE:
HEAVY RETAIL NET LONG OPEN INTEREST POSITION WILL CREATE HIGH STOCK SPECIFIC VOLATALITY IN SHORT TERM:
BE STOCK SPECIFIC & KEEP PERIODIC PROFIT BOOKING AT THESE LEVELS MAREKT:
: BE LIGHT & LESS LEVERAGE AT THESE LEVELS OF MARKET.
It looks like we are in wave-(iv) of V of 5 short term correction from overall wave count perspectives as per chart attached. One can expect market to fall first before heading towards higher levels targets as mentioned below in medium term.16900 is support/ reversal levels on nifty & 56300 levels on sensex for medium term perspectives.
BANK NIFTY Out performed as expected & continues to outperform in short term. We can see some kind of profit booking or wave-IV consolidation in bank nifty in short term. 38500-37800 levels is strong support or short term reversal levels for bank nifty till 37800 levels holds short term trend for bank nifty remains up & one can expect higher levels targets till 41500-42000 levels in short term. 36500 levels is strong support on bank nifty for medium term perspectives on bank nifty till it holds one can expect higher levels targets till 44000 levels in medium term.
17500 & 18500 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. Market will remain volatile ahead of expiry next week. Retail open interest position net long is at very high levels that will cause high stock specific volatility in market in short term. So be stock specific & Keep periodic profit booking at current levels of market.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. 18460 levels on nifty & 61880 levels on sensex is crucial reversal levels to finally conclude end of short term correction at current levels of market.
Momentum Perspective:
Weekly KST & WEEKLY MACD 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 |
| 59600/58700-57900 |  | 61880 |
| Medium Term : | Trend | Reversal |
| 63500 |  | 56300 |
| Short Term : | Trend | Reversal |
| 17800/17500-17300 | | 18460 |
| Medium Term : | Trend | Reversal |
| 18700-18800 | | 16900 |