Market Outlook
FRIDAY, February 26, 2021
Market Outlook (Closing) as on 26.02.2021
Market closed in negative territory at 49099.99 (- 1939.32)
SHARP REVERSAL FROM UPPEND END OF CHANNEL:
BE CATIOUS & BOOK PROFIT OR SELL AT CURREN T LEVELS OR ANY KIND OF RISE OR CONSOLIDATION: TRAIL TILL IT REVERSES:
LOOKS LIKE END OF 5 WAVE ADVANCE RALLY FROM BOTTOM OF MARCH 2020:
GOLBAL MAKRET LOOKS FOR SHORT TERM CORRECTION OR PROFIT BOOKING AND USD/INR REVERSED FROM CRUCAIL SUPPORT LEVELS INDICATING TREND REVERSAL:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
MISSING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC AND NOT TO BE CARRIED AWAY WITH TOO MUCH LEVERAGE IN THIS EUPH ORIC PHASE OF MARKET:
Market closed 2nd consecutive week in negative territory. It witnessed sharp profit booking from higher levels as warned in earlier outlook & confirmed short term reversal. We have seen market witnessing profit booking from upper end of channel as per chart attached. One should expect market to trend towards lower levels targets in short term till it reverses. One should book profit or sell at current levels or a kind of rise or consolidation.
It looks like end of 5 wave advance rally from bottom of March 2020 as per chart attached. It can be also possibility of end of missing larger degree missing wave-5 near upper end of channel as per chart attached from overall wave counts perspectives. One should book profit at current levels or any kind of rise or consolidation and watch out medium term reversal for finally conclude the same.
On the other hand, Global market (Particularly USA Market) also looks for short term poised or profit booking. It also looks like possibility of end of 5 wave advance rally from bottom of March 2020. Currency (USD/INR) also witnessed sharp reversal from crucial support near $72.25 levels. Gold is also trading near crucial support levels. This also evidences indicating for some kind of caution or advance warning in short term.
It still looks like “W” shape recovery or rally like 1998-2003 structure. And it’s missing Wave-V of higher degree from wave count perspectives. So one can’t rule out sharp correction, once this rally completes, towards further lower levels targets towards 2019 lows or retracement of entire rally from March 2019 lows. So one should be very stock specific in this phase of market.
BANK NIFTY also looks like end of 5 wave advance rally from bottom of March 2020 from over all wave counts perspectives as per chart attached. It also sharply reversed from upper end of channel from larger degree as per chart attached. 37232 crucial resistance/reversal levels for short term, till it holds, one can expect lower level target1-32800 & target2-31600 levels in short term. 29680 levels is strong support on bank nifty for medium term perspectives on bank nifty.
14500-14000/15000 is strong support zone & Resistance zone levels respectively based on option open interest data for expiry perspectives for current month so far based on option open interest data.
Momentum indicators Daily KST went in to SELL but Daily MACD are in SELL supporting short term trend. Close & sustain above short term reversal levels will only confirm further rally towards medium term targets levels as mentioned below. One should be stock specific & not to be carried away with too much leverage in this euphoric phase of market & follow trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL. 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 26.02.2021
Market closed in negative territory at 49099.99 (- 1939.32)SHARP REVERSAL FROM UPPEND END OF CHANNEL:
BE CATIOUS & BOOK PROFIT OR SELL AT CURREN T LEVELS OR ANY KIND OF RISE OR CONSOLIDATION: TRAIL TILL IT REVERSES:
LOOKS LIKE END OF 5 WAVE ADVANCE RALLY FROM BOTTOM OF MARCH 2020:
GOLBAL MAKRET LOOKS FOR SHORT TERM CORRECTION OR PROFIT BOOKING AND USD/INR REVERSED FROM CRUCAIL SUPPORT LEVELS INDICATING TREND REVERSAL:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
MISSING WAVE- V OF BULL MARKET:
BE STOCK SPECIFIC AND NOT TO BE CARRIED AWAY WITH TOO MUCH LEVERAGE IN THIS EUPH ORIC PHASE OF MARKET:
It looks like end of 5 wave advance rally from bottom of March 2020 as per chart attached. It can be also possibility of end of missing larger degree missing wave-5 near upper end of channel as per chart attached from overall wave counts perspectives. One should book profit at current levels or any kind of rise or consolidation and watch out medium term reversal for finally conclude the same.
On the other hand, Global market (Particularly USA Market) also looks for short term poised or profit booking. It also looks like possibility of end of 5 wave advance rally from bottom of March 2020. Currency (USD/INR) also witnessed sharp reversal from crucial support near $72.25 levels. Gold is also trading near crucial support levels. This also evidences indicating for some kind of caution or advance warning in short term.
It still looks like “W” shape recovery or rally like 1998-2003 structure. And it’s missing Wave-V of higher degree from wave count perspectives. So one can’t rule out sharp correction, once this rally completes, towards further lower levels targets towards 2019 lows or retracement of entire rally from March 2019 lows. So one should be very stock specific in this phase of market.
BANK NIFTY also looks like end of 5 wave advance rally from bottom of March 2020 from over all wave counts perspectives as per chart attached. It also sharply reversed from upper end of channel from larger degree as per chart attached. 37232 crucial resistance/reversal levels for short term, till it holds, one can expect lower level target1-32800 & target2-31600 levels in short term. 29680 levels is strong support on bank nifty for medium term perspectives on bank nifty.
14500-14000/15000 is strong support zone & Resistance zone levels respectively based on option open interest data for expiry perspectives for current month so far based on option open interest data.
Momentum indicators Daily KST went in to SELL but Daily MACD are in SELL supporting short term trend. Close & sustain above short term reversal levels will only confirm further rally towards medium term targets levels as mentioned below. One should be stock specific & not to be carried away with too much leverage in this euphoric phase of market & follow trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both went in to SELL. 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 |
| 48750-47400 |  | 51386 |
| Medium Term : | Trend | Reversal |
| 54500 |  | 46160 |
| Short Term : | Trend | Reversal |
| 14330/14000 | | 15177 |
| Medium Term : | Trend | Reversal |
| 16100 | | 13596 |