WEEKLY ASTRO GUIDE FOR NIFTY

REASONABLE RETRACEMENT

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

General outlook for the week (10.03.2014 to 14.03.2014) ::

Planetary Position ::  During the current week Moon would be transiting  from Aardra in Gemini  to Makha  in Leo.  Sun transits in Poorvabhadra  in Aquarius .  Mercury transits  in Dhanishta constellation in Capricorn and Aquarius . Mars  transits in   Chitta constellation in Libra and is in  Retrograde motion from 1^st March till 20^th May. . Saturn too in  Retrograde motion from 2^nd March till 20^th July and presently in  Visakha  constellation in Gemini navamsa. Jupiter I direct motion from  6^th March and in Aardra constellation. Monthly astro range was 6211 to 6292 and it achieved the Second target too with in Three days. Mars’ position in Chitta in Airy sign in Vargottamamsa created too much of activity and bullishness. During the current week Moon’s position in Gemini on Monday and Tuesday once again activates T square among slow moving planets and sudden surprises are on cards. Based on planetary movement during the week, retracement  is possible during Second half (Wednesday and Thursday).

Nifty Outlook for Next Week :: 10.03.2014 to 14.03.2014 (Overbought…. Retracement  Due)…  

 NIFTY :: 6527 (+250)  

Nifty continued its gains for the Third Week and gained about 4% and indices recorded multi year high. Notable feature of last week’s movement was fall in defensive stocks / sectors such as Pharma and IT and huge rise in other cyclical sectors such as Banks, Metals , Infra and Real estate etc., Market appears to be discounting election results and it is clear a case of pre election rally. With last week’s rally, Nifty has clearly come out of the trading range and 200 DMA could become a strong base even from long term point of view. Among sectoral indices, IT index had fallen last week and IT stocks may be avoided for time being  or may be bought in a staggered manner.  March month has already clocked in  a gain of about 4%. Technically, though the trend is firm and bullish,  caution is advised at higher levels as short term trend is overbought and a retracement  is to be expected. .

Nifty continues to be above 200 DMA and 50 DMA too is above 200 DMA suggesting that the long term bullish trend is intact. Bank Nifty too exhibited strength last week and is above 200 DMA now  and can be expected to take support above 11000 even during correction. Energy major, Reliance too rallied on Friday lending support to Nifty. Hence both Bank stocks and Reliance supported Nifty, as was being pointed in this column, and Nifty could achieve a breakout only with the above support despite some drag from defensive sectors such as Pharma and IT. Sectoral and Scrip rotation has become the order of the day. Big event of 2014 is Loksabha Elections and the outcome would dictate the future trend.  As of now, market expects NDA to return to power and carry the development agenda and stock market discounts future in advance.  Even with last week’s rise, Nifty is quoting at a PE of 18.38 , which is only 2% above the long term PE. Hence, further upside (upto 7500) is possible  in case  a stable and performing Government returns to power at the centre.

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 and breakout appears to have begun last week. Hence strong long term support would be around 6000 level.  

For Short term , the stop loss is 6375, and for Medium term, stop loss is 6000.   For the current week, Nifty spot is expected to encounter selling pressure at higher levels and achieve a reasonable pullback. Hence long positions may be attempted only on retracement  and last week’s resistance zone of 6375 – 6400 could become support zone for the week. IF it breaks  the support zone, a deeper pullback is to be expected.

For the coming week, Nifty spot is expected to face resistance at
6610,  6690, 6770 and find support at 6445, 6365, 6285.

Nifty is overbought in short term timeframe and a reasonable pullback is to be expected.

Advice for Traders :: A huge upside of about 4% was witnessed last week. As it is in overbought position, a reasonable retracement  can be expected upto 6350 – 6400 during the week. Fresh long positions may be attempted only on retracement and short positions may be attempted only by traders with high risk appetite with proper risk management.

WD Gann’s natural support and resistance levels for the week

 5968, 6046, 6124  , 6202 ,6281,6361, 6441

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