ASTRO TECHNICAL GUIDE FOR NIFTY

RBI POLICY HOLDS KEY...

For the week (27.01.2014 to 31.01.2014)

Planetary Position ::  During the current week Moon would be
transiting  from Jyeshta in Scorpio  to Dhanishta in Capricorn.Sun transits in Sravana constellation in Capricorn. Mercury transits in  Dhanishta in   Aquarius sign.Mars  transits in   Chitta constellation in Virgo.   Saturn continues in Visakha  constellation in  Gemini navamsa.Jupiter transits in Retrograde motion (till 6^th March 2014)  in Gemini and presently in  Pisces Navamsa . Venus, in retro motion till 1^st February 2014,  transits in  Poorvashadha  constellation in Sagittarius ..Grand Square effect involving Mars and Outer planets had their effect on all world markets too during weekend. With Moon in Sagittarius, it would be once again in Grand square involving Mars, Uranus, Jupiter  and highly volatile movements are likely.

Nifty Outlook  

NIFTY :: 6267 (+5)  

Nifty closed flat for the week amid volatile movements. Though it moved in a narrow range, it maintained on the positive side for the Four days of the week and gave up all the gains on Friday. Weekly movement with closure at the lower end of the weekly range and possible lower opening for next week suggests weakness and further downside. However, broader index does not speak of the total market movements as there was scrip specific movement and market breadth was negative as Declines outnumber Advances even on days when Nifty was positive. This phenomenon indicates profit booking at higher level as times are uncertain in view of the Big event of General elections in 2014. Sectoral and Scrip rotation can be considered  to be the order of the day. As weekend Global cues were quite negative, sharp lower opening is to be expected and any further fall could be considered negative. Further, Nifty has been moving a range of 6125 and 6350 and had once again faced resistance at the upper end of the range and would be coming to the lower end of the range. If RBI Policy on Tuesday does not provide support to the market, lower end of the range i.e., 6125 could be breached. On the other hand, if it lends support, Nifty could remain in the range for some more time before finding direction. As poll surveys predict that NDA is ahead of others, market could remain optimistic. Any sharp fall upto about 5900 – 6000 could be utilized as an opportunity to accumulate quality stocks.

Medium and Long term trend is Bullish and Short term trend is Neutral with support and Resistance at 6125 and 6350 respectively. IT and Pharma (export oriented) sectors are bullish. This week’s major event is RBI’s policy, which would provide direction to market trend particularly certain sectors auch as PSU Banks and interest rate sensitive sectors.

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 (after Elections).  . Technically, Nifty is in a narrow range and major support at 6125 and resistance at 6350 (on close basis)  and unless either of these levels is broken decisively, it can be considered to be in neutral range.  Nifty is  above 200  DMA   and   50DMa is above  200DMA and makes a clear case of “Buy on Decline” with 200 DMA as stop loss.  .Any decent correction is an opportunity for medium / long term investors and  it is a clear case of “Buy on Decline”  long as it holds above 200 DMA, which is presently placed around 5900.

For the coming week, Nifty spot is expected to face resistance at
6340,  6420, 6500 and find support at 6185, 6105, 6025.

Nifty spot has strong  support at 6125 and resistance at 6350. Nifty needs to decisively close below 6125 for a couple of days to sustain downward  momentum.

Advice for Traders :: Nifty has been trading between 6350 and 6125 for the last Six weeks and can be expected to remain sideways. However, scrip specific actions is possible in view of the results and last week of F&O expiry. RBI Policy could be expected to provide direction to market. . Strong support exists at 6125 below which only  it can be expected to have downward momentum. Close below 6125 is possible only in case of negatives in RBI Policy. Hence RBI Policy holds the key for the week.

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