Market Outlook
FRIDAY, JUNE 29, 2018
Market Outlook (Closing) as on 29.06.2018
Market closed in positive territory at 35,423.48 (+257.21)
SHARP RECOVERY FROM LOWER END OF RANGE:
STILL TRADING IN RANGE: TRAIL TILL IT REVERSES:
STRONG DIVERGENCE BETWEEN NIFTY/SENSEX MAIN INDICES & BROADER MARKET INDICES:
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 negative terriotry. It failed to give breakout on upside from the range as expected last week. We have seen sharp sell off during the week ahead of expiry. It finally managed to hold lower end of range & sharply reversed at the end of weekly trading session. It made a low of 10557.70 levels on nifty & 34,937.15 levels on sensex during week. Its still trading in broad range of 10400-10900 levels on nifty in near term. One should expect trending mometum across the board in market, once it breaks out of these range as per chart attached. Any kind of decline or short term consolidation is stock specific buying opportunity till short term reverses.
It still looks like wave-II of (5) consoldation phase on main indices nifty/sensex as per chart attached. There is strong divergence between Nifty/Sensex main indices & Broader Market in short term from last couple of months. And we have seen sharp sell off particularly in broader market in near term. I feel this divergence is going to end soon, once we break out of this short term range on main indices. And we will see strong rebound in broader market. This correction is opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives..
BANK NIFTY closed weekly in negative territory. Its consolidating in narrow range between 27000-25550 levels in near term. 25550 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets till 27700 levels in short term & further above 29600-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
10500 & 11000 levels is strong support & resistance levels based on option open interest data for currnet month series expiry perspectives. By looking at current structure, I feel market is going to surpass all time high soon on main indices & 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 SELL indicating volatality in short term within this range. 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 10300-10200 levels on nifty & 33600 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 29.06.2018
Market closed in positive territory at 35,423.48 (+257.21)SHARP RECOVERY FROM LOWER END OF RANGE:
STILL TRADING IN RANGE: TRAIL TILL IT REVERSES:
STRONG DIVERGENCE BETWEEN NIFTY/SENSEX MAIN INDICES & BROADER MARKET INDICES:
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:
It still looks like wave-II of (5) consoldation phase on main indices nifty/sensex as per chart attached. There is strong divergence between Nifty/Sensex main indices & Broader Market in short term from last couple of months. And we have seen sharp sell off particularly in broader market in near term. I feel this divergence is going to end soon, once we break out of this short term range on main indices. And we will see strong rebound in broader market. This correction is opportunity to BUY quality beaten down stocks of midcap & small cap index from medium to long term perspectives..
BANK NIFTY closed weekly in negative territory. Its consolidating in narrow range between 27000-25550 levels in near term. 25550 levels is strong support for bank nifty for short term, till it holds one can exepct higher levels targets till 27700 levels in short term & further above 29600-30000 levels in medium term. Any kind of decline is also buying opportunity for bank nifty for short to medium term perspectives.
10500 & 11000 levels is strong support & resistance levels based on option open interest data for currnet month series expiry perspectives. By looking at current structure, I feel market is going to surpass all time high soon on main indices & 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 SELL indicating volatality in short term within this range. 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 10300-10200 levels on nifty & 33600 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 |
| 36300-36500 |  | 34302 |
| Medium Term : | Trend | Reversal |
| 38200-38500 | | 29077 |
| Short Term : | Trend | Reversal |
| 11000-11200 | | 10417 |
| Medium Term : | Trend | Reversal |
| 12000-12200 | | 8968 |