Market Outlook
FRIDAY, AUGUST 24, 2018
Market Outlook (Closing) as on 24.08.2018
Market closed in negative territory at 38,251.40 (- 84.96)
SHORT TERM TARGETS ACHIEVED: LOOKS LIKE EXTENSION CASE FURTHER TOWARDS REVISED SHORT TERM TARGETS:
BANK NIFTY TO OUTPERFORM IN RALLY AHEAD: UPDATING MEDIUM TERM STRUCTURE ON BANK NIFTY:
BSE 500 IS 4 TH INDICES TO MAKE NEW ALL TIME HIGH THIS WEEK AND JOIN THE BULL MARKET PARTY WITH SENSEX/NIFTY & BANK NIFTY:
MIDCAP & SMALL CAP INDICES GOING TO OUTPERFORM IN RALLY AHEAD:
ANY KIND OF SHORT TERM VOLTALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Market closed 5th concecutive week in positive territory. It has achieved my short term targets levels near recnet high as expected. It made a high of 11,620.70 levels on nifty & 38,487.63 levels on sensex during week. It looks like extension case furhter as per short term wave count chart attached.Any kind of short term consolidation or correction is stock specific buying opportunity till short term reverses.
Broader market such as midcap & small cap indices remained outperformer & closed weekly in positive territory. Its slow & steady extending on upside as expected . Broader market will catch up with main indices with faster face in rally ahead. One should still find out opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives. As exepcted , BSE 500 is the 4th indices to make new all time high this week & join the bull market party with sensex/Nifty & Bank nifty. I feel rest of the indices such as Midcap & Small cap indices is also going to surpass All time high soon in coming months & this rally will have time wise consolidation rather than price wise correction in short term.
BANK NIFTY closed weekly in negative territory. It consolidated in narrow range during week. It made a high 28,386 levels so far in rally. 26926 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets in the raneg of 28800-29800 levels in short term. 26000 levels is crucial support for bank nifty from medium term perspectives, till it holds one can higher levels targets till 32800-33000 levels on bank nifty as per monthly chart attached here.
11400/11500 & 11600/11700 levels is strong support & resistance levels respectively based on option open interest data for expiry perspectives next week.Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST & DAILY MACD both went in to sell indicating volatality in short term ahead of expiry next week. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 10500-10400 levels on nifty & 34900-34300 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY & Its trading above both 20WESM & 40 WEMA . All Medium term Parameters are showing strength.One can expect market to trend towards higher level targets in medium term. Any kind of short term correction or consolidation in buying opportunity for medium to long term Investment perspectives till it reverses.
Conclusion:
Short Term Trend is UP & Medium term Trend is UP.
Trend
Market Outlook (Closing) as on 24.08.2018
Market closed in negative territory at 38,251.40 (- 84.96)SHORT TERM TARGETS ACHIEVED: LOOKS LIKE EXTENSION CASE FURTHER TOWARDS REVISED SHORT TERM TARGETS:
BANK NIFTY TO OUTPERFORM IN RALLY AHEAD: UPDATING MEDIUM TERM STRUCTURE ON BANK NIFTY:
BSE 500 IS 4 TH INDICES TO MAKE NEW ALL TIME HIGH THIS WEEK AND JOIN THE BULL MARKET PARTY WITH SENSEX/NIFTY & BANK NIFTY:
MIDCAP & SMALL CAP INDICES GOING TO OUTPERFORM IN RALLY AHEAD:
ANY KIND OF SHORT TERM VOLTALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Broader market such as midcap & small cap indices remained outperformer & closed weekly in positive territory. Its slow & steady extending on upside as expected . Broader market will catch up with main indices with faster face in rally ahead. One should still find out opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives. As exepcted , BSE 500 is the 4th indices to make new all time high this week & join the bull market party with sensex/Nifty & Bank nifty. I feel rest of the indices such as Midcap & Small cap indices is also going to surpass All time high soon in coming months & this rally will have time wise consolidation rather than price wise correction in short term.
BANK NIFTY closed weekly in negative territory. It consolidated in narrow range during week. It made a high 28,386 levels so far in rally. 26926 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets in the raneg of 28800-29800 levels in short term. 26000 levels is crucial support for bank nifty from medium term perspectives, till it holds one can higher levels targets till 32800-33000 levels on bank nifty as per monthly chart attached here.
11400/11500 & 11600/11700 levels is strong support & resistance levels respectively based on option open interest data for expiry perspectives next week.Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST & DAILY MACD both went in to sell indicating volatality in short term ahead of expiry next week. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Close below short term reversal levels will lead to sharp correction till 10500-10400 levels on nifty & 34900-34300 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY & Its trading above both 20WESM & 40 WEMA . All Medium term Parameters are showing strength.One can expect market to trend towards higher level targets in medium term. Any kind of short term correction or consolidation in buying opportunity for medium to long term Investment perspectives till it reverses.Conclusion:
Short Term Trend is UP & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 38700-39500 |  | 35993 |
| Medium Term : | Trend | Reversal |
| 40500-41000 | | 32483 |
| Short Term : | Trend | Reversal |
| 11750-11800 | | 10929 |
| Medium Term : | Trend | Reversal |
| 12500-12800 | | 9951 |