Market Outlook
FRIDAY, JULY 27, 2018
Market Outlook (Closing) as on 27.07.2018
Market closed in positive territory at 37,336.85 (+ 352.21)
TREND TOWARDS SHORT TERM TARGETS LEVELS:
MIDCAP & SMALL CAP INDICES BOTTOMING OUT & READY TO JOIN THE RALLY WITH END OF DIVERGENCE:
REST OF THE REMAINING INDICES WILL ALSO MAKE ALL TIME HIGH IN COMING MONTHS OF 2018:
MIDCAP & SMALL CAP INDICES GOING TO OUTPERFORM IN RALLY AHEAD:
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 territory. Its slow & Steady extending on upside after breakout from range as expected last week. It made a high of 11,283.40 levels on nifty & 37,368.49 levels so far during this week. Nifty made a fresh all time high this week as expected after sensex. One can expect market to trend towards further higher levels targets as mentioned below in short to medium term. Any kind of short term consolidation or correction is stock specific buying opportunity till short term reverses.
We have seen broader market participation this week & we had rally across the board in market after long time. As expected earleir, Midcap & small cap indices & quality stocks from these segments had bottom out & we will see sharp recovery in these stocks & indices in coming trading session. These divergence now ended & broader market will also join party with main indices nifty & sensex. Broader makret will catch up with main indices with faster face & relatively outperform in coming months of calender year 2018. One should still find out opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives.
BANK NIFTY closed weekly in positive territory. It extended rally on upside & achieved my short term targets levels near recent high as expected earleir. It made a high of 27660 levels so far in this rally & closed just 1 point away for its life time high of 27661 levels. 26000 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets till 28400 levels in short term & further above 29800-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
11000 & 11500 levels is strong support & resistance levels respectively based on option open interest data for current month series expiry perspectives. As exepcted market has made new life time high on nifty & sensex so far & By looking at current structure, I feel market is going to surpass all time high soon on rest of the other indices such as BANK NIFTY, BSE 500, Midcap & Small cap indices as well in coming months & 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 & DAILY MACD both are in BUY supporting short term trend. 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 10500-10400 levels on nifty & 34900-34300 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY & Its trading above both 20WESM & 40 WEMA . All Medium term Parameters are showing strength.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 27.07.2018
Market closed in positive territory at 37,336.85 (+ 352.21)TREND TOWARDS SHORT TERM TARGETS LEVELS:
MIDCAP & SMALL CAP INDICES BOTTOMING OUT & READY TO JOIN THE RALLY WITH END OF DIVERGENCE:
REST OF THE REMAINING INDICES WILL ALSO MAKE ALL TIME HIGH IN COMING MONTHS OF 2018:
MIDCAP & SMALL CAP INDICES GOING TO OUTPERFORM IN RALLY AHEAD:
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:
We have seen broader market participation this week & we had rally across the board in market after long time. As expected earleir, Midcap & small cap indices & quality stocks from these segments had bottom out & we will see sharp recovery in these stocks & indices in coming trading session. These divergence now ended & broader market will also join party with main indices nifty & sensex. Broader makret will catch up with main indices with faster face & relatively outperform in coming months of calender year 2018. One should still find out opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives.
BANK NIFTY closed weekly in positive territory. It extended rally on upside & achieved my short term targets levels near recent high as expected earleir. It made a high of 27660 levels so far in this rally & closed just 1 point away for its life time high of 27661 levels. 26000 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets till 28400 levels in short term & further above 29800-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
11000 & 11500 levels is strong support & resistance levels respectively based on option open interest data for current month series expiry perspectives. As exepcted market has made new life time high on nifty & sensex so far & By looking at current structure, I feel market is going to surpass all time high soon on rest of the other indices such as BANK NIFTY, BSE 500, Midcap & Small cap indices as well in coming months & 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 & DAILY MACD both are in BUY supporting short term trend. 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 10500-10400 levels on nifty & 34900-34300 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY & Its trading above both 20WESM & 40 WEMA . All Medium term Parameters are showing strength.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 |
| 38500-38700 |  | 35993 |
| Medium Term : | Trend | Reversal |
| 38200-38700 | | 29077 |
| Short Term : | Trend | Reversal |
| 11500-11600 | | 10929 |
| Medium Term : | Trend | Reversal |
| 12000-12200 | | 8968 |