Market Outlook
THURSDAY, OCTOBER 29, 2020
Market Outlook (Closing) as on 29.10.2020
Market closed in negative territory at 39,749.85 (- 172.61)
NEAR SHORT TERM REVERSAL LEVELS:
MAKE OR BREAK ???: TRAIL TILL IT REVERSES:
AT VERY CRUCIAL LEVELS IN SHORT TERM CONSOLIDATION:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
Market is consolidating between 11660-12000 levels from last couple of trading session. It’s closed near lower end of support levels at the end of trading session as per chart attached. One needs to watch out market behavior at these crucial levels for short term trend. One should wait for any kind of trading or investment decision till confirmation of trend at either of side from these crucial levels in short term. In this phase of market, one should be very stock specific in trading & Investment perspectives.
It looks like flat wave- (II) of 5 correction kind of pattern as per chart attached. If wave-V has to extend then, it a very important level to watch out in short term for BULLS till it reverses.
As mentioned earlier as, its MISSING WAVE-V OF PREVIOUS BULL MARKET from overall wave counts perspectives. But market is failed to extend 11800 levels on nifty which was earlier medium term reversal levels. It was traded in range of 11800-12000 levels. It has to show strength at current levels & break this range in upside to achieve higher levels targets in medium term. One should closely watch out market behavior at these crucial levels. We have seen recent rally is driven by selected few stocks. It’s not good sign at current levels of market & not giving confidence to conclude fresh BULL Market. It looks like “W” shape recovery or pull back rally like 1998-2003 structure, In that case, one can’t rule out sharp correction from higher levels. So one should be very stock specific in this phase of market.
BANK NIFTY almost achieves my short term targets levels near recent high. It made a high of around 24810 levels. 23800 is short term reversal levels ,till it holds one can expect higher levels targets in the range of 24200-25200 levels in short term. Sustain above 25200 levels will further confirm higher levels targets till 26800 levels in medium term. 21500 is final level to conclude medium term reversal on bank nifty.
Momentum indicators Daily KST & Daily MACD both are in SELL indicating volatile trend in short term. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. Close below short term reversal levels will lead to sharp sell off towards lower levels targets of 10800/10550 levels on nifty & 36495-35877 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 UP & Medium term Trend is UP
Trend
Market Outlook (Closing) as on 29.10.2020
Market closed in negative territory at 39,749.85 (- 172.61)NEAR SHORT TERM REVERSAL LEVELS:
MAKE OR BREAK ???: TRAIL TILL IT REVERSES:
AT VERY CRUCIAL LEVELS IN SHORT TERM CONSOLIDATION:
STILL LOOKS LIKE “W ” SHAPE RECOVERY OR PULL BACK RALLY LIKE 1998-2003 STRUCTURE OF MARKET:
BE STOCK SPECIFIC IN THIS PHASE OF MARKET:
It looks like flat wave- (II) of 5 correction kind of pattern as per chart attached. If wave-V has to extend then, it a very important level to watch out in short term for BULLS till it reverses.
As mentioned earlier as, its MISSING WAVE-V OF PREVIOUS BULL MARKET from overall wave counts perspectives. But market is failed to extend 11800 levels on nifty which was earlier medium term reversal levels. It was traded in range of 11800-12000 levels. It has to show strength at current levels & break this range in upside to achieve higher levels targets in medium term. One should closely watch out market behavior at these crucial levels. We have seen recent rally is driven by selected few stocks. It’s not good sign at current levels of market & not giving confidence to conclude fresh BULL Market. It looks like “W” shape recovery or pull back rally like 1998-2003 structure, In that case, one can’t rule out sharp correction from higher levels. So one should be very stock specific in this phase of market.
BANK NIFTY almost achieves my short term targets levels near recent high. It made a high of around 24810 levels. 23800 is short term reversal levels ,till it holds one can expect higher levels targets in the range of 24200-25200 levels in short term. Sustain above 25200 levels will further confirm higher levels targets till 26800 levels in medium term. 21500 is final level to conclude medium term reversal on bank nifty.
Momentum indicators Daily KST & Daily MACD both are in SELL indicating volatile trend in short term. One should be stock specific & follow trend with trail stop loss levels till it reverses in short term. Close below short term reversal levels will lead to sharp sell off towards lower levels targets of 10800/10550 levels on nifty & 36495-35877 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 UP & Medium term Trend is UP
Trend
| Short Term : | Trend | Reversal |
| 42270 |  | 39524 |
| Medium Term : | Trend | Reversal |
| 43000 | | 38236 |
| Short Term : | Trend | Reversal |
| 12430 | | 11600 |
| Medium Term : | Trend | Reversal |
| 12650-12900 | | 11300 |