NIFTY OUTLOOK FOR THE WEEK

BULLISH...BUT CAUTIOUS AT HIGHER LEVELS

Planetary Position ::  During the current week Moon would be
transiting  from Sathabhisham   in Aquarius   to Aswini in Aries .  Sun transits in Jyeshta   constellation  in Scorpio.    Mercury ,transits in  Anuradha and Jyeshta  constellations in Scorpio.    Mars  transits in   Uttara  constellation in Virgo.   Saturn continues in Visakha  constellation in  Taurus navamsa.  Jupiter transits in Retrograde motion (till 6^thMarch 2014)  in Gemini and presently   in Taurus Navamsa .  Venus transits in  Uttarashadha  constellations in   Capricorn sign. Range from Monday to Thursday can be considered as the reference range for the next Three weeks and market would be bullish above the high and bearish below the levels. Caution is suggested at higher levels as correction is possible from the week beginning 17^th December or later in view of the Mars’ aspects with Uranus and Pluto towards the month end.

Nifty Outlook for Next Week :: 09.12.2013 to 13.12.2013 (Book Profits at Higher Levels )…  

 NIFTY :: 6260(+84)  

Nifty surged further for the Second week as exit poll results had given a boost to the market. World markets have gone up on Friday indicating a bullish opening for the week.  As Final results of Assembly elections are in line with Exit poll results, further rise too is possible. Semi finals of Elections point towards a market friendly and development oriented Government in 2014 which would be discounted in advance by market and “Buy on Decline “ strategy may be followed. While a new is high is on cards  for Nifty during the week, caution too is advised and profit booking / selling could emerge at higher levels in view of the euphorically charged atmosphere. Fresh buying at higher levels may be avoided and be made with long term view with an intention of  averaging on the downside. Nifty could seek higher levels and register a new High during this month. Positive feature of the current rise is the participation of several midcap stocks which have registered smart rise. While further rise is possible, stock selection has become an important factor as several stocks continue to remain laggards. Hence an approach combining Technicals and Fundamentals is required to spot winners. 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. When Nifty clears breaks this trading range and continuously trades above 6400, it has potential to test 8000 over a period of time.  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 . Presently short term movement too is positive and long positive may be continued with a stop loss of 6150 on close basis.  Nifty is  above 200  DMA  and 50 DMA and the  50DMa also has crossed  200DMA and makes a clear case of “Buy on Decline” with 200 DMA as stop loss. .As market is bullish on all time frames, it is a clear case of “Buy on Decline” for Medium / Long term as long as it holds above 200 DMA.

For the coming week, Nifty spot is expected to face resistance at
6340,  6420, 6500 and find support at 6180, 6100, 6025.

Nifty , presently in short term bullishness, would reverse only on a close below  6150 in first half of the week and below 6200 in Second half of the week. .

Advice for Traders :: Nifty is Bullish in the short term when  Nifty makes a new high due to euphoric and charged atmosphere, long positions may be avoided and profit booking can be resorted to particularly in leveraged positions. Caution is advised at higher levels.

WD Gann’s
natural numbers which would act as natural support and resistance are
, : 5968, 6046, 6124, 6202 ,6281, 6361, 6441, 6487 during the week.

Inputs provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

He can be reached @sastry.saaketa@gmail.com

09848014561