Market Outlook
FRIDAY, MAY 25, 2018
Market Outlook (Closing) as on 25.05.2018
Market closed in positive territory at 34,924.87 (+ 261.76)
END OF WAVE-II CORRECTION WITH WEEKLY POSITIVE CLOSE:
FAILED TO SUSTAIN AT HIGHER LEVELS WILL OPEN UP ALTERNATE POSSIBILTY OF BULLISH TRINGULAR CONSOLIDATION IN WAVE-IV
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 weekly in positive terriotory after high volatality during the week. It made a low of 10,430.35 levels on nifty & 34,302.89 levels on sensex during week. It looks like possiblity of end of wave-II correction as mentioend earlier as per chart attached.Any kind of decline or short term consolidation is stock specific buying opportunity till short term reverses. One can expect higher levels targets as mentioend below in short to medium term.
Alternatively, Nifty has resistance around 10800-10900 levels, failed to sustian above these levels will open up alternate possiblity of triagular consolidation structure in wave-IV as per chart attached. Its not my preffered alternate at current levels of market but one should closely watchout market behavior at higher levels to fianlly conclude the same.
It looks like end of broder makret correction with double bottom kind of fomation at lower levels. One should expect broader market particularly midcap & Small cap index to do well in coming week.
BANK NIFTY closed weekly in positive territory. Its outperforming at current levels of market. It made a low of around 25,550 levels so far in this correction. It has also found support near lower end of channel as per chart attached. It has still more clear bullish set up of either wave-ii or wave-iv correction as per chart attached.One can expect higher levels targets around 27700 levels till it holds crucial support of 25500 levels in short term & further above 29600-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
10500 & 10800 levels is strong support & resistance levels range respectively based on option open interest data for expiry perspectives next week. Market will remain very volatile ahead of Result season this month. By looking at current structure, I feel market is going to surpass all time high soon on main indices & this rally will have time wise consolidation rather than price wise correction in short term. 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 are in sell indicating volatality to continue in short term. 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 9950-9800 levels on nifty & 32400-31800 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL & also closed below 20 WSMA. Its trading above 40 WEMA . Medium term Parameters are showing weakness but one need to watch out price confirmation to conclude medium term reversal till that 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 25.05.2018
Market closed in positive territory at 34,924.87 (+ 261.76)END OF WAVE-II CORRECTION WITH WEEKLY POSITIVE CLOSE:
FAILED TO SUSTAIN AT HIGHER LEVELS WILL OPEN UP ALTERNATE POSSIBILTY OF BULLISH TRINGULAR CONSOLIDATION IN WAVE-IV
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:
Alternatively, Nifty has resistance around 10800-10900 levels, failed to sustian above these levels will open up alternate possiblity of triagular consolidation structure in wave-IV as per chart attached. Its not my preffered alternate at current levels of market but one should closely watchout market behavior at higher levels to fianlly conclude the same.
It looks like end of broder makret correction with double bottom kind of fomation at lower levels. One should expect broader market particularly midcap & Small cap index to do well in coming week.
BANK NIFTY closed weekly in positive territory. Its outperforming at current levels of market. It made a low of around 25,550 levels so far in this correction. It has also found support near lower end of channel as per chart attached. It has still more clear bullish set up of either wave-ii or wave-iv correction as per chart attached.One can expect higher levels targets around 27700 levels till it holds crucial support of 25500 levels in short term & further above 29600-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
10500 & 10800 levels is strong support & resistance levels range respectively based on option open interest data for expiry perspectives next week. Market will remain very volatile ahead of Result season this month. By looking at current structure, I feel market is going to surpass all time high soon on main indices & this rally will have time wise consolidation rather than price wise correction in short term. 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 are in sell indicating volatality to continue in short term. 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 9950-9800 levels on nifty & 32400-31800 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL & also closed below 20 WSMA. Its trading above 40 WEMA . Medium term Parameters are showing weakness but one need to watch out price confirmation to conclude medium term reversal till that 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 |
| 36100-36500 |  | 33700 |
| Medium Term : | Trend | Reversal |
| 38200-38500 | | 29077 |
| Short Term : | Trend | Reversal |
| 11000-11200 | | 10279 |
| Medium Term : | Trend | Reversal |
| 12000-12200 | | 8968 |