WEEKLY ASTOR GUIDE FOR NIFTY

SELL ON RISE

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

Planetary Position ::  During the current week Moon would be transiting  from Punarvasu in Gemini to Makha in Leo. Sun transits in Revathi in Pisces . .  Mercury transits  in Uttarabhadra  in  Pisces. Mars  transits in   Chitta constellation in 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.  Nifty’s range between 28^th and 31^st March was 6730 and 6644 and the targets are 6815 / 6900 on the upside and 6560 6485on the downside. Further, global markets can be expected to correct in Second half of April and whether our markets would follow is to be seen?

 

Nifty Outlook for Next Week :: 07.04.2014 to 11.04.2014 (Caution at Higher Levels)…  

 

NIFTY :: 6694 (-2)  

 

Nifty traded in a narrow range and closed flat for the week. Sectoral rotation has become order of the day and different sectors should be tracked to discern individual trends. However, as Nifty had gone up without a meaningful correction, the same is to be expected either in April or May. But sooner the better it is as any meaningful correction could give an opportunity to Buy. However, market’s nature is to surprise and this time could be no exception. 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.   Technically, though the trend is firm and bullish,  caution is advised at higher levels as  and  retracement  is to be expected. .As  there are Four trading holidays in the next Three weeks, truncated trading would hinder the flow of the market and Quarterly results too would influence performance of individual scrips. However, any sharp fall for any reason would be an opportunity to Buy for Medium / Long term.

 

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 recently  and is above 200 DMA.  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 18.75 , which is only 4% above the long term PE of 18. Hence, further upside (upto 7500 to 8000) 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  a  powerful breakout appears to be unfolding. (expected post election results but the liquidity is in a hurry  to complete the task as stock market usually ahead by about  Six months. Hence strong long term support would be around 6000 level.  

For Short term,  the stop loss is 6675 (on close basis), and for Medium term, stop loss is 6000.   For the current week, Nifty spot is expected to continue with the uptrend as long as it holds above the support level of 6675., Breakout level for the week is 6800 and break down level is 6645. If breakdown is breached, Sell on Rise policy may be followed.

 

For the coming week, Nifty spot is expected to face resistance at
6780,  6860, 6860 and find support at 6615, 6530, 6450.

Nifty in short term bullishness would come out of the same only if it closes below 6675, .

 

Advice for Traders :: As Nifty gets into consolidation mode, last week’s range is crucial and if the Low is broken, high might not be breached and vice versa. Hence, trading strategy may be devised as to which happens first. However, as  correction is possible before end of April,  caution is to be exercised on any smart rise .

WD Gann’s
natural numbers which would act as natural support and resistance are
, :  ,  ,6281,6361, 6441 , 6521, 6628, 6769,6913 during the week.