WEEKLY ASTRO GUIDE FOR NIFTY

WIDE RANGE WITH BEARISH BIAS

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

General outlook for the week (24.03.2014 to 28.03.2014) ::

Planetary Position ::  During the current week Moon would be transiting  from Moola in Sagittariusi  to Sathabhisham in Aquarius. Sun transits in Uttarabahdra in Pisces . .Mercury transits  in Sathabhisham constellation in  Aquarius . Mars  transits in   Chitta constellation in Libra and Virgo  and has been 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 transits in Aardra constellation and in  Pisces Navamsa during the week. Mars’ position in Chitta in Airy sign in Vargottamamsa created too much of activity and bullishness but its reentry into earthy and inimical sign Virgo on 25^th could take away bullishness and bring back bearishness and consequently the much awaited correction. During the current week Moon’s position in Sagittarius on Mon and Tuesday once again acrtivates T square between outer planets. Hence caution is advised at higher levels. Further, Nifty’s range between 28^th and 31^st March would be the reference range for the next Three weeks.

Nifty Outlook

NIFTY :: 6495 (-9)  

Nifty which moved smartly in the first week of March, moved sideways for the last Two weeks and appears set for a smart rise once again or the much awaited correction for the earlier rise. Market Undertone continues to be quite bullish but  a reasonable retracement is still due and can be expected sooner than later. Based on current market movement, sector specific / stock specific approach is more relevant for swing traders. With the recent rise, Nifty has clearly come out of the trading range and 200 DMA could become a strong base even from long term point of view.  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  and  retracement  is to be expected. .

Nifty had traded in a narrow range last week and a weekly breakout  would happen above  6600 and break down would take place below 6450. Bank Nifty (12072) has strong support at 11850 and resistance at 12250 for next week. IT Index(9402) has resistance at 9750 and support at 9100 for next week. But if it unable to break the resistance , the fall can be steeper and the support of 9100 too can be broken to test about 8800 levels.

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, 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 the recent  rise, Nifty is quoting at a PE of 18.35 , which is only 2% above the long term PE of 18. Hence, further upside (upto 7500) is possible  in case  a stable and performing Government returns to power at the centre as earnings go up over the time in an inflation ridden economy.

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 recently. Hence strong long term support would be around 6000 level.  

For Short term,  the stop loss is 6475, 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 , however, further rise too can be expected if last week’s move was a consolidation.

For the coming week, Nifty spot is expected to face resistance at
6585,  6655, 6740 and find support at 6420, 6335, 6260.

Nifty in short term bullishness would come out of the same if it closes below 6475, .

Advice for Traders :: Nifty traded sideways and appears to be in consolidation / distribution mode. If Nifty breaks / closes below 6475, further downside is possible. On the other hand, if it closes / trades above 6600, further upside too would be possible. In view of the last week of F&O expiry, scrip specific movement is most likely.  Expected reasonable retracement was not witnessed last week, hence retracement is due sooner than later and hence caution is advised at higher levels. While time wise correction is taking place, price wise correction is still due and could come in a hurry also.  

WD Gann’s
natural numbers which would act as natural support and resistance are
, :  ,  6124  , 6202 ,6281,6361, 6441 , 6521, 6628, 6769 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