CLOSE- 11054.10 (07.02.2019)
The market finally broke out of the last 2 months consolidation range on the upside. Nifty showing impulsive structure from recent lows. One can expect the market to trend towards higher levels targets as mentioned below till it reverses. Any kind of decline or consolidation is buying opportunity till short term reverses.
It looks like the beginning of wave-III of 5 from overall wave count perspectives. Broader market ( Midcap/Smallcap) is still underperforming at current levels of the market. It has to participate in this rally now & these divergences between main indices & broader market are going to end soon. One should closely watch out the broader market at these crucial levels of the market. Risk Reward is favourable to BUY stock specific at current levels of the market.
The short-term outlook for the market remains positive till Nifty trades above 10,583 levels and expecting targets in the range of 11,550-11,600 levels in short term. Medium term outlook for the market remains positive till Nifty trades above 9,951 levels and expecting targets in the range of 12,500-12,800 levels in the medium term.
BANK NIFTY also at the verge of breaking out short term consolidation range on the upside. It also looks like the beginning of wave-III of 5 from overall wave count perspectives. 26,500 level is strong support on bank nifty, till it holds one can expect higher levels target1-28,700/28,800 & target2-29,500 levels in short term. 23,600 level is strong support for medium-term perspectives, till it holds, One can expect higher levels targets in the range of 30,000-32,000 levels on medium-term perspectives
10,700 & 11,500 levels are strong support & resistance levels respectively based on option open interest data for current month series. Any kind of such short term correction or consolidation is buying stock specific opportunity for medium to long term Investment perspectives till medium term reverses.
Momentum indicators Daily KST & Daily MACD both came in to BUY supporting short term view. One should be stock specific & follow the trend with trail stop loss levels till it reverses. Risk Reward is favourable to BUY at current levels of the market. Close below short term reversal levels will lead to sharp correction till 10,300 levels on nifty & 34,400 levels on Sensex in short term.
Devang Shah: The author of www.trendtechno.com (Trade with Trend) and an independent market analyst.
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.