Market Outlook
FRIDAY, OCTOBER 26, 2018
Market Outlook (Closing) as on 26.10.2018
Market closed in negative territory at 33,349.31 (- 340.78)
WILL IT BE MISSING WAVE-V OR EXTENSION CASE FOR SHORT TERM:
NEAR VERY CRUCIAL MEDIUM TERM SUPPORT LEVELS: CAN’T RULED OUT SHARP PULL BACK RALLY IN SHORT TERM:
STILL LOOKS LIKE ON GOING CORRECTION OF BULL MARKET NOT BEGINING OF ANY KIND OF BEAR MARKET:
RISK REWARD IS FAVOURABLE TO BUY STOCK SPECIFIC FROM MEDIUM TERM PERSPECTIVES:
ANY KIND OF SHORT TERM VOLATALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Market closed surprisingly weekly in negative terriotry. It has broken last week lows on both sensex & Nifty. It made a low of 10004.55 levels on nifty & 33291.58 levels on sensex during the week. It has made me surprised & still not conclusive for me that its missing wave-V or Extension case for short term from wave count perspectives. But changing short term out look till we get any kind of furhter evidences to conclude end of short term correction. As market is near crucial medium term support levels, one can’t ruled out any kind of sharp pull back rally in short term. One should watchout market behaviour at these crucial levels.
Although My preffered though is of missing wave-V formation as per chart attached But will closely watchout market behaviour at these crucial medium term support levels to get more clarity on short term market structure. It still looks like On going fast & Furious correction of Bull Market, Not begining of any kind of Bear Market to me till we get furhter evidences of the same. It may consolidate between 9950-10700 levels in broad range in short term before further trend established with mometum.
BANK NIFTY also closed weekly in negative territory. It made a low of 24467 levels at the end of weekly trading session. Its outperforming during the week but surprisingly closed weekly in negative territory. It still looks like missing wave-V of C as per chart attached. One can expect banknifty to consolidate further near lower end of range near 24200-23600 levels till it trades below It 25900 levels in short term. 23000 levels is strong support on bank nifty from medium term perspectives till it holds one can expect higher levels targets till 32000-33000 levels in medium term.
10000 & 10500 levels is strong support & resistance levels respectively based on option open interest data for current month series. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses. Participation from betean down broader market midcap & small cap indices is important to watchout from medium term perspectives from here on.
Momentum indicators Daily KST is in BUY but DAILY MACD is 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 above short term reversal levels will confirm furhter continuation of rally towards 11100 levels on nifty & 36938 levels on sensex in short term
Momentum Perspective:
Weekly KST & WEEKLY MACD both Went in to SELL & Its trading below both 20WESM & 40 WEMA . All Medium term Parameters are showing weakness. One should watchout 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 26.10.2018
Market closed in negative territory at 33,349.31 (- 340.78)WILL IT BE MISSING WAVE-V OR EXTENSION CASE FOR SHORT TERM:
NEAR VERY CRUCIAL MEDIUM TERM SUPPORT LEVELS: CAN’T RULED OUT SHARP PULL BACK RALLY IN SHORT TERM:
STILL LOOKS LIKE ON GOING CORRECTION OF BULL MARKET NOT BEGINING OF ANY KIND OF BEAR MARKET:
RISK REWARD IS FAVOURABLE TO BUY STOCK SPECIFIC FROM MEDIUM TERM PERSPECTIVES:
ANY KIND OF SHORT TERM VOLATALITY/ CONSOLIDATION OR DECLINE IS STOCK SPECIFIC BUYING OPPORTUNITY FOR SHORT TO MEDIUM TERM INVESTMENT PERSPECTIVES:TRAIL TILL IT REVERSES:
Although My preffered though is of missing wave-V formation as per chart attached But will closely watchout market behaviour at these crucial medium term support levels to get more clarity on short term market structure. It still looks like On going fast & Furious correction of Bull Market, Not begining of any kind of Bear Market to me till we get furhter evidences of the same. It may consolidate between 9950-10700 levels in broad range in short term before further trend established with mometum.
BANK NIFTY also closed weekly in negative territory. It made a low of 24467 levels at the end of weekly trading session. Its outperforming during the week but surprisingly closed weekly in negative territory. It still looks like missing wave-V of C as per chart attached. One can expect banknifty to consolidate further near lower end of range near 24200-23600 levels till it trades below It 25900 levels in short term. 23000 levels is strong support on bank nifty from medium term perspectives till it holds one can expect higher levels targets till 32000-33000 levels in medium term.
10000 & 10500 levels is strong support & resistance levels respectively based on option open interest data for current month series. Any kind of such short term correction or consolidation is buying opportunity for medium to long term Investment perspectives till medium term reverses. Participation from betean down broader market midcap & small cap indices is important to watchout from medium term perspectives from here on.
Momentum indicators Daily KST is in BUY but DAILY MACD is 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 above short term reversal levels will confirm furhter continuation of rally towards 11100 levels on nifty & 36938 levels on sensex in short term
Momentum Perspective:
Weekly KST & WEEKLY MACD both Went in to SELL & Its trading below both 20WESM & 40 WEMA . All Medium term Parameters are showing weakness. One should watchout price reversal to finally conclude medium term reversal.Conclusion:
Short Term Trend is DOWN & Medium term Trend is UP.
Trend
| Short Term : | Trend | Reversal |
| 32483 |  | 35216 |
| Medium Term : | Trend | Reversal |
| 43200 |  | 32483 |
| Short Term : | Trend | Reversal |
| 9900-9950 | | 10710 |
| Medium Term : | Trend | Reversal |
| 12600-12900 | | 9951 |