WEEKLY ASTRO GUIDE FOR NIFTY

SELL ON RISE AS FURTHER DOWNSIDE POSSIBLE

General outlook for the week (06.01.2014 to 10.01.2014) ::

 Planetary Position ::  During the current week Moon would be
transiting  from Poorvabhadra  in Aquarius    to  Bharani in Aries.    Sun transits in Poorvashadha constellation in Sagittarius. Mercury transits in Uttarashadha in Sagittarius and Capricorn signs.  Mars  transits in   Hastha  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 Aries Navamsa .  Venus, in retro motion till 1^st February 2014,  transits in  Uttarashadha  constellations in   Capricorn sign and moves to Sagittarius on 7^th..Further, there is a Grand Square / T square operating  involving Mars and Outer planets till 1^st week of January  and high degree of volatility is to be expected which was witnessed in the Secondhalf of the last week. Further , Nifty’s range from Monday to Wednesday can be considered as a reference range for the next Three weeks and Nifty could be considered Bullish above the High of the range and Bearish below the low of the range. . Further with both auspicious planets i.e., Jupiter and Venus being in retrograde motion, sustained upside too  can not be expected.

Nifty Outlook for Next Week :: 06.01.2014 to 10.01.2014 (Sell on Rise )…  

 NIFTY :: 6211(-103)  

After more than 7 trading sessions’ narrow movement, Nifty cracked on Thursday afternoon and fell more than 2% from the high level to end the week with a loss of more than 1.50% and it could not carry the gains of previous Two weeks. Despite last week’s fall, Nifty has been moving in a  narrow range of 6400 to 6000 for the last Six weeks and is in a broad range of about 6%. Institutional participation was subdued towards the end of December and can be expected to increase.  Short term trend continues to remain neutral with downside bias and closer to lower end of the range ie., 6200.  While Medium and Long term is bullish, short term trend has been oscillating in a narrow range with bullish / bearish bias ..  Market is hoping for a performing Government in next elections and is factoring in the bullish sentiment. Hence, it all depends on Election outcome for real direction to the market. However, cautious bullishness prevails in the present market as midcap stocks too started performing.  Hence, any decent correction in view of the short term bad news is an opportunity for long term / medium term investors to buy quality stocks. Further, Q3 results season too would be starting from Second week of January and scrip / sector specific movement would be in focus. While Nifty made a new high for statistical purpose, it would be in place in spirit only when it maintains above the previous high. 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.  Stock market discounts future in advance and is ahead of economy and fundamentals atleast by Six months. and medium term bullishness  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 . Technically, Nifty is in a narrow range and major support at 6125 and resistance at 6325 (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 50 DMA and the  50DMa also has crossed  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. As Nifty has registered a decline in the first week of new derivative series, further fall too can be expected before it rebounds after middle of the month. .

For the coming week, Nifty spot is expected to face resistance at
6290,  6370, 6450 and find support at 6130, 6055, 5975.

Nifty spot has strong  support at 6125 and resistance at 6325. Nifty needs to decisively close below 6125 for a couple of days to sustain downward  momentum. As Nifty has been moving  in a narrow range for the last Six weeks, either a powerful breakout / breakdown is possible or it could remain in a narrow range for some more time to come.  

Advice for Traders :: Nifty registered decline  in the first week of new series and further decline is possible before a rebound. “Sell on Rise” policy may be followed with 6325 as stop loss on close basis.

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

Further , Weekly Open level is very important for the entire week.
Short positions may be avoided as long as it maintains / closes above
Weekly open and vice versa