NIFTY OUTLOOK FOR THE WEEK

Mon – Wed’day range Astro Range… !!

General outlook for the week (11.11.2013 to 15.11.2013) ::

Nifty resumed Downtrend once again and fell more than 2.5%.  This fall is overpowered by DII selling in excess of FII Buying. Since FIIs continue to be buyers, deep correction may not take place unless they turn sellers due to INR movement. However, based on pure technicals, it has broken down with  a target of about 5950 to 6000. In case of a further fall for the next week, fall upto week ending 22 November can be expected from when it could rebound strongly.  However, while short term trend is down, Intermediate trend / long term trend is up and any decent correction could be utilized for Medium term long positions. Political developments are to be closely watched for further trigger. Further, Nifty has been trading in a range of 4600 to 6300 for more than 4 years and is due for a  powerful breakout sooner than later. All eyes are on forth coming State Elections which could be viewed as a  prelude for the forthcoming Big fight. Stock market discounts future in advance and is ahead of economy and fundamentals atleast by Six months. and medium term bullish sign in markets presupposes improving fundamentals.  Nifty has been making higher bottoms and can be expected to breakout and make higher tops. “Buy on Decline” may be followed for Medium / long term. Traders should be ever vigilant to track short term movements and presently, a close above 6250 only would reverse the bearish sentiment. Nifty is  above 200  DMA  and 50 DMA and the  50DMa also is crossing  200DMA and makes a clear case of “Buy on Decline” with 200 DMA as stop loss.  

SUPPORT & RESISTANCE LEVELS

RESISTANCE : 6220,  6300, 6380 SUPPORT :  6060, 5980, 5900.

Advice for Traders :: Nifty has clearly become bearish for short term and the week would be crucial as to further fall or reversl. In case of further fall, correction upto 5950 /  6000 can  be expected over next 7 – 8 trading sessions. On the otherhand, in case of a net gain for the week, it could be considered as a short term bullishness and a new high during the month can not be ruled out. However, close above 6250 is necessary to confirm short term bullishness.

GANN LEVELS...  5980, 6046, 6124, 6202 ,6281, 6361,6441, 6487.

 

Inputa provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

 He can be reached @ 

DATA TO DRIVE THE MARKET

Macroeconomic data, movement of rupee against the US dollar, foreign investments trend and earnings from blue-chips such as SBI would drive the stock markets in a holiday-shortened week ahead, experts said. Industrial production data for September would be announced on Tuesday. Besides, the data on inflation based on consumer price index (CPI) for October will be unveiled on Tuesday, while wholesale price index (WPI) numbers will come on Friday. Stock markets would remain closed for Moharram on Thursday. The major earnings announcements this week are -- NHPC, Reliance Power, Hindalco Industries, Reliance Communications, Tata Global Beverages, Sun Pharmaceutical Industries, Cipla, Coal India, Mahindra & Mahindra, State Bank of India, Tata Steel, Tata Power and Jaiprakash Associates. "Global cues and economic and political scenarios within the country will impact near-term trend. This week, 6,080 shall be a crucial deciding level for Nifty in near-term, and the index is likely to witness further selling below this level," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited. Overseas investors have poured in nearly Rs 3,000 crore in the Indian stock market so far this month. Meanwhile, the US economy saw an addition of 2,04,000 new jobs in October despite a fortnight long government shutdown, latest government figures had said last week, reflecting an improvement in the condition of the world's largest economy. Over the past week, the S&P BSE benchmark Sensex ended lower by 531 points to 20,666.15 after touching an all-time high of 21,321.53 during the first day of the Samvat year 2070.