Market Outlook
FRIDAY, SEPTEMBER 27, 2020
Market Outlook (Closing) as on 27.09.2020
Market closed in positive territory at 37,388.66 (+ 835.06)
FIRST SHORT TERM TARGETS ACHIEVED: TRAIL TILL IT REVERSES:
TRADER SHOULD BOOK PROFIT & BE STOCK SPECIFIC AT CURRENT LEVELS OF MARKET:
DERIVATIVE DATA OF LOW ROLL OVER INDICTINNG POSSIBILITY OF PULL BACK RALLY IN SHORT TERM:
REVISING MEDIUM TERM REVERSAL LEVELS, AS LOOKS LIKE “ W ” SHAPE RECOVERY OR PULL BACK RALLY:
STILL LOOKS LIKE TYPICAL BEAR MARKET RALLY TILL MEDIUM TERM REVERSES:
Market sharply corrected & witnessed sell off as expected from higher levels. It has achieved first short term targets levels near recent lows. It made a low of 36495.98 levels on sensex & 11790.20 levels on nifty. One should watch out trailing reversal levels for conclusion of short term reversal as per chart attached. Close below recent lows will confirm further possibility of extension of correction towards lower levels targets as mentioned below in short term. Trader should book profit & be stock specific at current levels of market.
Overall wave count is still optional as per chart attached, one should watch out market behavior in coming days for further confirmation of overall wave counts structure. Though, Market derivative Open interest data is very light & low indicating possibility of pull back rally from current levels before any kind of further sell off, if any in short term.
BANK NIFTY is underperforming at current levels of market. It also witnessed sharp sell off as expected in short term. It has achieved first short term targets levels as expected near recent lows. It made a low of 20431 levels so far in this correction. One should watch out trailing reversal level of 22660 levels for conclusion of short term reversal as per chart attached. Close below recent lows will confirm further possibility of extension of correction towards lower levels target 19500 levels in short term. 27000 levels is medium term reversal levels for Bank nifty, till it holds one can expect lower levels targets till 17000/16000 levels in medium term.
10500 & 11500 levels is crucial support & Resistance levels respectively based on option open interest data for current month series. Though Derivative open interest data is very low indicating high probability of pull back rally from such kind of light open interest.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. One should periodically book profit in such kind of market. Close above short term reversal levels will confirm rally towards higher levels targets of 11600/11800 levels on nifty & 39360-40000 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in 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 DOWN.
Trend
Market Outlook (Closing) as on 27.09.2020
Market closed in positive territory at 37,388.66 (+ 835.06)FIRST SHORT TERM TARGETS ACHIEVED: TRAIL TILL IT REVERSES:
TRADER SHOULD BOOK PROFIT & BE STOCK SPECIFIC AT CURRENT LEVELS OF MARKET:
DERIVATIVE DATA OF LOW ROLL OVER INDICTINNG POSSIBILITY OF PULL BACK RALLY IN SHORT TERM:
REVISING MEDIUM TERM REVERSAL LEVELS, AS LOOKS LIKE “ W ” SHAPE RECOVERY OR PULL BACK RALLY:
STILL LOOKS LIKE TYPICAL BEAR MARKET RALLY TILL MEDIUM TERM REVERSES:
Overall wave count is still optional as per chart attached, one should watch out market behavior in coming days for further confirmation of overall wave counts structure. Though, Market derivative Open interest data is very light & low indicating possibility of pull back rally from current levels before any kind of further sell off, if any in short term.
BANK NIFTY is underperforming at current levels of market. It also witnessed sharp sell off as expected in short term. It has achieved first short term targets levels as expected near recent lows. It made a low of 20431 levels so far in this correction. One should watch out trailing reversal level of 22660 levels for conclusion of short term reversal as per chart attached. Close below recent lows will confirm further possibility of extension of correction towards lower levels target 19500 levels in short term. 27000 levels is medium term reversal levels for Bank nifty, till it holds one can expect lower levels targets till 17000/16000 levels in medium term.
10500 & 11500 levels is crucial support & Resistance levels respectively based on option open interest data for current month series. Though Derivative open interest data is very low indicating high probability of pull back rally from such kind of light open interest.
Momentum indicators Daily KST & Daily MACD both are in SELL supporting short term trend. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. One should periodically book profit in such kind of market. Close above short term reversal levels will confirm rally towards higher levels targets of 11600/11800 levels on nifty & 39360-40000 levels on sensex in short term.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in 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 DOWN.
Trend
| Short Term : | Trend | Reversal |
| 35870/34500 |  | 38850 |
| Medium Term : | Trend | Reversal |
| 32350-29968-27500 | | 40006 |
| Short Term : | Trend | Reversal |
| 10560/10200 | | 11375 |
| Medium Term : | Trend | Reversal |
| 9500-8800-8000 | | 11800 |