Market Outlook
WEDNESDAY, JANUARY 27, 2021
Market Outlook (Closing) as on 27.01.2021
Market closed in negative territory at 47,409.93 (- 937.66)
SHARP PROFIT BOOKING FROM HIGHER LEVELS:
LOOKS LIKE WAVE-IV SHORT TERM CORRECTION: TRAIL TILL IT REVERSES:
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 IN THIS EUPH ORIC PHASE OF MARKET:
Market sharply broken crucial supports & witnessed sharp profit booking as warned earlier. It looks like correction to extend further towards lower levels targets as mentioned below. Generally, Markets are doing 3 weeks correction so far in this entire rally since March 2020, therefore expects market to remain in corrective mode till end of next week. One should expect market to trend towards lower levels targets in this correction till it reverses.
It looks like wave-IV correction as per chart attached in short term. It will remain highly volatile ahead of budget events. One should be stock specific & wait for market to settle after budget.
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 broken crucial supports & witnessed sharp fall. 31700 is short term reversal levels, one can expect lower levels target1-28900 & tgt2-28100-27700-26900 in short term. It also looks like wave-IV correction on bank nifty as per chart attached. 25200 levels is strong support for overall bullish view on bank nifty for further higher levels targets till 33500-34000 levels in medium term.
13500/14500 is strong support zone & Resistance zone levels respectively based on option open interest data for expiry perspectives so far based on option open interest data.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. Close above short term reversal levels will confirm rally towards towards 14800-15250 levels on nifty & 50500-51000 levels on sensex in short to medium term. One should be stock specific & follow trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. 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 27.01.2021
Market closed in negative territory at 47,409.93 (- 937.66)SHARP PROFIT BOOKING FROM HIGHER LEVELS:
LOOKS LIKE WAVE-IV SHORT TERM CORRECTION: TRAIL TILL IT REVERSES:
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 IN THIS EUPH ORIC PHASE OF MARKET:
It looks like wave-IV correction as per chart attached in short term. It will remain highly volatile ahead of budget events. One should be stock specific & wait for market to settle after budget.
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 broken crucial supports & witnessed sharp fall. 31700 is short term reversal levels, one can expect lower levels target1-28900 & tgt2-28100-27700-26900 in short term. It also looks like wave-IV correction on bank nifty as per chart attached. 25200 levels is strong support for overall bullish view on bank nifty for further higher levels targets till 33500-34000 levels in medium term.
13500/14500 is strong support zone & Resistance zone levels respectively based on option open interest data for expiry perspectives so far based on option open interest data.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. Close above short term reversal levels will confirm rally towards towards 14800-15250 levels on nifty & 50500-51000 levels on sensex in short to medium term. One should be stock specific & follow trend with trail stop loss levels till it reverses.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. 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 |
| 46000-44900 |  | 49263 |
| Medium Term : | Trend | Reversal |
| 50500-50800 |  | 41048 |
| Short Term : | Trend | Reversal |
| 13700-13550-13175 | | 14491 |
| Medium Term : | Trend | Reversal |
| 14900-15200 | | 12020 |