Market Outlook
FRIDAY, DECEMBER 23, 2022
Market Outlook (Closing) as on 23.12.2022
Market closed in negative territory at 59,845.29 (-980.93)
BREAK OF CRUCAIL SUPPORT WITH SHARP SELL OFF:
INDECESIVE TO CONTINUE FURTHRER IN SHORT TERM: TRAIL TILL IT REVERSES:
RESURGENT OF COVID IN CHINA & ITS EFFECTS ACROSS THE GLOBE TO WATCH OUT IN NEAR TERM:
DERIVATIVE DATA INDICATING LONG POSITIONS HOLD BY RETAIL PARTICIPANTS IN INDEX & STOCK FUTURES
MEDIUM TERM REVERSAL LEVELS TO WATCHOUT FOR FINAL CONCLUSION OF ANY KIND OF EXTENDED CORRECTION:
ANY KIND OF SHORT TERM CORRECTION OR CONSOLIDATION IS A BUYING OPPORTUNITY FROM LONG TERM INVESTMENT PERSPECTIVES:
Market witnessed sharp selloff, it has broken crucial support & closed 3rd consecutive week in negative territory as per chart attached. Sensex & Nifty made a low of 60637.24 & 17779.50 levels respectively. Indecisive to continue further in short term till market reverses. Resurgent of covid in china & its effects across the globe to watch out in near term. Market is close to medium term reversal/support levels as well. It’s very important levels to watch out for final conclusion of any kind of extended correction. One should follow trend till it reverses in this crucial levels near medium term reversal levels.
So far stick to original wave counts only till medium term reverses. It looks like wave-ii of III short term correction as sub wave counts. One should further evidences for medium term trend at this very crucial levels of this short term correction. Short term trend remains down till it trades below43185 & Expecting targets of around of 40800 levels in short term. 39600 is crucial support/reversal levels from medium term perspectives till it holds one can expect targets of around 48000 levels in medium term.
Bank nifty also extend fall & closed 2nd consecutive week in negative territory. It made a low of 41597.65 levels so far in this correction. Short term trend remains down till it trades below 43185 levels & expecting target of 40800 levels in short term. 39600 is crucial support/reversal levels from medium term perspectives till it holds one can expect targets of around 48000 levels in medium term.
17000/17500-18000 is strong support & Resistance levels respectively based on option open interest data for current month series so far from expiry perspectives. Derivatives data indicating Bullish positions in index futures & stock futures still hold by Retail clients. Any kind of further unexpected bad news can lead to massive liquidation of these positions, can possible create further sharp selloff in the market in short term. One should strictly follow trend till volatility & uncertainty settles.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. Break of medium term reversal levels will lead to further sharp sell off towards 17000/16700 levels on nifty & 57000/56000 levels on sensex in short term. Investor should use any kind of correction or consolidation to buy stock specific in tranches in disciplined manner from long term perspectives.
Momentum Perspective:
Weekly KST went in to SELL But Weekly MACD is still in BUY. Market closed above 20WESM & 40 WEMA. All the evidences are supporting with medium term trend.
Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP
Trend
Market Outlook (Closing) as on 23.12.2022
Market closed in negative territory at 59,845.29 (-980.93)BREAK OF CRUCAIL SUPPORT WITH SHARP SELL OFF:
INDECESIVE TO CONTINUE FURTHRER IN SHORT TERM: TRAIL TILL IT REVERSES:
RESURGENT OF COVID IN CHINA & ITS EFFECTS ACROSS THE GLOBE TO WATCH OUT IN NEAR TERM:
DERIVATIVE DATA INDICATING LONG POSITIONS HOLD BY RETAIL PARTICIPANTS IN INDEX & STOCK FUTURES
MEDIUM TERM REVERSAL LEVELS TO WATCHOUT FOR FINAL CONCLUSION OF ANY KIND OF EXTENDED CORRECTION:
ANY KIND OF SHORT TERM CORRECTION OR CONSOLIDATION IS A BUYING OPPORTUNITY FROM LONG TERM INVESTMENT PERSPECTIVES:
So far stick to original wave counts only till medium term reverses. It looks like wave-ii of III short term correction as sub wave counts. One should further evidences for medium term trend at this very crucial levels of this short term correction. Short term trend remains down till it trades below43185 & Expecting targets of around of 40800 levels in short term. 39600 is crucial support/reversal levels from medium term perspectives till it holds one can expect targets of around 48000 levels in medium term.
Bank nifty also extend fall & closed 2nd consecutive week in negative territory. It made a low of 41597.65 levels so far in this correction. Short term trend remains down till it trades below 43185 levels & expecting target of 40800 levels in short term. 39600 is crucial support/reversal levels from medium term perspectives till it holds one can expect targets of around 48000 levels in medium term.
17000/17500-18000 is strong support & Resistance levels respectively based on option open interest data for current month series so far from expiry perspectives. Derivatives data indicating Bullish positions in index futures & stock futures still hold by Retail clients. Any kind of further unexpected bad news can lead to massive liquidation of these positions, can possible create further sharp selloff in the market in short term. One should strictly follow trend till volatility & uncertainty settles.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. Break of medium term reversal levels will lead to further sharp sell off towards 17000/16700 levels on nifty & 57000/56000 levels on sensex in short term. Investor should use any kind of correction or consolidation to buy stock specific in tranches in disciplined manner from long term perspectives.
Momentum Perspective:
Weekly KST went in to SELL But Weekly MACD is still in BUY. Market closed above 20WESM & 40 WEMA. All the evidences are supporting with medium term trend.Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP
Trend
| Short Term : | Trend | Reversal |
| 59850/58980 |  | 61676 |
| Medium Term : | Trend | Reversal |
| 68000 |  | 58578 |
| Short Term : | Trend | Reversal |
| 17600/17500 | | 18345 |
| Medium Term : | Trend | Reversal |
| 20400 | | 17428 |