Market Outlook
FRIDAY, MAY 27, 2022
Market Outlook (Closing) as on 27.05.2022
Market closed in Positive territory at 54,884.66 (+ 632.13)
SHORT TERM REVERSAL LEVELS TO WATCHOUT FOR TO CONCLUDE END OF CORRECTION:
NEAR CRUCIAL CLUSTER OF RESISTANCE ZONE IN SHORT TERM:
LOWER LEVELS TARGETS CAN POSSIBLE TILL SHORT TERM REVERSES:
MEDIUM TO LONG TERM INVESTOR CAN USE THIS CORRECTION FOR STOCK SPECIFIC BUYING OPPORTUNITY: TRAIL TILL IT REVERSES
Market started bounced back from lower levels after achieving my first short term targets levels of this correction. It made a low of 15735.75 levels on nifty & 52632.48 levels on sensex. It’s still looks like pull back rally to me till we get final confirmation of short term reversal. It’s trading near crucial cluster of Resistance zone. One can clearly see typical very identical short term behavior on chart since October 2021 before end of short term correction. Short term Trader should be waiting & watch mode till we can get confirmation of short term reversal. Failed to cross short term reversal will lead to further continuation of correction towards lower levels targets as mentioned below in near term. One should be stock specific & follow the trend till it reverses.
It still looks like Wave-IV or wave-B of ongoing correction as per chart attached. Market in general in wave-II Correction. We may see Market to trade in range in this calendar year. We can see Time wise corrective phase with rotation of stocks in this phase of correction.
Bank nifty is out performing in short term. It has achieved my first short term targets levels near recent lows in this correction. It made a low of 33001.75 levels so far in this correction. It still looks like Wave-B Pullback rally. 36333 is short term reversal levels till it holds one can expect lower levels targets 32000 levels in short term. 39425 are medium term reversal levels for Bank nifty, till it holds one can expect lower levels targets of around 30500-30000 levels medium term. One should watch out short term reversal levels to finally conclude end of short term correction on Bank nifty.
15500/16000 & 16500/17000 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far from expiry perspectives. Market may trade in this range for this month series.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatile trend in near term. Trader should wait for short term reversal to finally conclude end of short term correction while Investor should use this corrective phase to buy stock specific in tranches in disciplined manner from long term perspectives.
Momentum Perspective:
Weekly KST & WEEKLY came in to BUY but Weekly MACD is still in SELL. Market closed above 20WESM & 40 WEMA. One should watch out for price Reversal to finally conclude Medium term Reversal
Conclusion:
Short Term Trend is UP & Medium term Trend is Down
Trend
Market Outlook (Closing) as on 27.05.2022
Market closed in Positive territory at 54,884.66 (+ 632.13)SHORT TERM REVERSAL LEVELS TO WATCHOUT FOR TO CONCLUDE END OF CORRECTION:
NEAR CRUCIAL CLUSTER OF RESISTANCE ZONE IN SHORT TERM:
LOWER LEVELS TARGETS CAN POSSIBLE TILL SHORT TERM REVERSES:
MEDIUM TO LONG TERM INVESTOR CAN USE THIS CORRECTION FOR STOCK SPECIFIC BUYING OPPORTUNITY: TRAIL TILL IT REVERSES
It still looks like Wave-IV or wave-B of ongoing correction as per chart attached. Market in general in wave-II Correction. We may see Market to trade in range in this calendar year. We can see Time wise corrective phase with rotation of stocks in this phase of correction.
Bank nifty is out performing in short term. It has achieved my first short term targets levels near recent lows in this correction. It made a low of 33001.75 levels so far in this correction. It still looks like Wave-B Pullback rally. 36333 is short term reversal levels till it holds one can expect lower levels targets 32000 levels in short term. 39425 are medium term reversal levels for Bank nifty, till it holds one can expect lower levels targets of around 30500-30000 levels medium term. One should watch out short term reversal levels to finally conclude end of short term correction on Bank nifty.
15500/16000 & 16500/17000 is strong support zone & Resistance zone levels respectively based on option open interest data for current month series so far from expiry perspectives. Market may trade in this range for this month series.
Momentum indicators Daily KST & Daily MACD both are in BUY indicating volatile trend in near term. Trader should wait for short term reversal to finally conclude end of short term correction while Investor should use this corrective phase to buy stock specific in tranches in disciplined manner from long term perspectives.
Momentum Perspective:
Weekly KST & WEEKLY came in to BUY but Weekly MACD is still in SELL. Market closed above 20WESM & 40 WEMA. One should watch out for price Reversal to finally conclude Medium term ReversalConclusion:
Short Term Trend is UP & Medium term Trend is Down
Trend
| Short Term : | Trend | Reversal |
| 52200-51300 |  | 56500 |
| Medium Term : | Trend | Reversal |
| 47200-46500 | | 60846 |
| Short Term : | Trend | Reversal |
| 15700-15450 | | 16800 |
| Medium Term : | Trend | Reversal |
| 14200-13700 | | 18115 |