Market Outlook
MONDAY, AUGUST 31, 2020
Market Outlook (Closing) as on 31.08.2020
Market closed in negative territory at 38,628.29 (- 839.02)
SHARP SELL OFF AFTER ACHIEVING SHORT TERM TARGETS LEVELS:
LOOKS LIKE END OF PULL BACK RALLY: PROFIT BOOKING FROM HIGHER LEVELS:
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 witnessed sharp sell off after achieving short term targets levels. It just shoot up beyond short term targets levels & also above medium term reversal levels as mentioned earlier by couple of points but not able to sustain at these levels for a single day & witnessed sharp selloff & profit booking today. It made a high of 11794.25 levels on nifty & 40005.69 levels on sensex today. One should expect market to trend towards lower levels targets as mentioned below till it reverses. One should book profit at current levels or exit in any kind of rise in long position. Trader should short at any kind of rise till short term reverses.
It still looks like end of wave- B Pull back rally at today’s high as per chart attached from overall wave count perspectives. One should book profit at current levels. One can expect market to trend towards lower levels targets as mentioned below till it reverses.
We have seen sharp rally in BANK NIFTY as expected. It has achieved my short term targets levels near recent high as expected earlier. It made a high of 25270 levels today. We have seen sharp selloff & Profit booking from these levels. One can expect BANK NIFTY to trend towards lower levels target1-22100 & target2-21000 & taregt3-19500 levels in short term. 25270 levels are crucial resistance/reversal levels for 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.
11000 & 11500 levels is crucial support & Resistance levels respectively based on option open interest data for expiry perspectives for current month series. I am also revising medium term reversal levels for overall trend of the market as below & it still looks like typical Bear Market rally till medium term reverses. And so far it’s turning out to be “W” shape recovery or pullback rally from medium term perspectives. It requires further more confirmation for finally conclude medium term reversal. I will periodically review for the same.
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 & cautiously bullish at higher levels.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. Market is closed above 20WESM & 40 WEMA. Majority of medium term indicators are in BUY but 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 31.08.2020
Market closed in negative territory at 38,628.29 (- 839.02)SHARP SELL OFF AFTER ACHIEVING SHORT TERM TARGETS LEVELS:
LOOKS LIKE END OF PULL BACK RALLY: PROFIT BOOKING FROM HIGHER LEVELS:
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:
It still looks like end of wave- B Pull back rally at today’s high as per chart attached from overall wave count perspectives. One should book profit at current levels. One can expect market to trend towards lower levels targets as mentioned below till it reverses.
We have seen sharp rally in BANK NIFTY as expected. It has achieved my short term targets levels near recent high as expected earlier. It made a high of 25270 levels today. We have seen sharp selloff & Profit booking from these levels. One can expect BANK NIFTY to trend towards lower levels target1-22100 & target2-21000 & taregt3-19500 levels in short term. 25270 levels are crucial resistance/reversal levels for 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.
11000 & 11500 levels is crucial support & Resistance levels respectively based on option open interest data for expiry perspectives for current month series. I am also revising medium term reversal levels for overall trend of the market as below & it still looks like typical Bear Market rally till medium term reverses. And so far it’s turning out to be “W” shape recovery or pullback rally from medium term perspectives. It requires further more confirmation for finally conclude medium term reversal. I will periodically review for the same.
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 & cautiously bullish at higher levels.
Momentum Perspective:
Weekly KST & WEEKLY MACD both are in BUY. Market is closed above 20WESM & 40 WEMA. Majority of medium term indicators are in BUY but 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 |
| 37650-36900-35872/34500 |  | 40006 |
| Medium Term : | Trend | Reversal |
| 32350-29968-27500 | | 40006 |
| Short Term : | Trend | Reversal |
| 11100-10900-10560/10200 | | 11800 |
| Medium Term : | Trend | Reversal |
| 9500-8800-8000 | | 11800 |