WEEKLY ASTRO GUIDE FOR NIFTY

Caution at Higher Levels

(as Mars Saturn conjunction could escalate Geo Political Tensions)

Planetary Position

- During the current week Moon would be transiting  from Makha in Leo to Hastha in Virgo.

- Sun transits in Makha in Leo .

- Mercury transits  in    Pubba and Uttara constellations  in   Leo.

- Mars  transits in  Visakha i  constellation in Libra  .  

- Saturn transits in Visakha constellation in Libra  .  

Jupiter transits in Pushyami in Cancer .

Astro range wise, Nifty is bullish with about 8000 as first target.

Most Important cosmic event is the forthcoming Mars Saturn conjunction on 25 / 26^th August which is to be watched for possible  geo political tensions etc., and their consequential effect on markets.

NIFTY::(7913(+122)

Nifty gained about 1.50% for the Second week . However, it has been range bound and traded in a narrow range with an imminent breakout / breakdown in the coming week. Technically, present bullishness would be under threat if it closes below7850. Macro  economic indicators have turned positive in view of the falling crude oil prices as Diesel subsidy is nearly phased out.   If inflation too eases leading to reduction of interest rates, economic revival would kick in leading to earnings growth and higher PE too. With a proactive and committed Government at the centre, it would happen sooner than later. However, a reasonable correction could take place before another leg of upmove. On the other hand, if market remains sideways also, it could be taken as a correction. Stocks which have run up ahead of fundamentals are seen correcting.

Bank Nifty and IT Index clocked in smarter gains than Nifty last week and these Two sectors are clearly bullish.

Technically, Nifty is bullish in all time frames and very short term trend could come under threat if it closes below 7850.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 7760, 7670, 7360 and 6800 respectively and would

act as supports. Nifty has taken support from about 50 DMA last Three times and could be expected to lend

strong support and a deeper correction could set in only if it closes and trades below 50 DMA(7670) consistently.

Nifty continues to be above 200 DMA and 50 DMA too is above 200 DMA (Golden Cross) suggesting that the long term bullish trend is intact.   Nifty is quoting at a PE of about 20.50 , which is about 12% above the  long term PE multiple.  Hence, further upside ( 8000+ or 8500+ is possible during the year / before next Budget)  

in view of the  stable and performing Government  at the centre as earnings would go up becauseof favourable atmosphere .  Hence, it could pullback nearer to long term average when it gets into correction.

Market is usually ahead of fundamentals and fundamentals need to catch up with the present valuations which could take some time , hence correction could be expected.

Further, Nifty had been trading in a range of 4600 to 6300 (till 2013) for more than 4 years and  a  powerful breakout had taken place  for an initial target of about 8000 / 8500.. Hence strong long term support would be around 6800

level and Medium term support is 7350.

Resistance Levels : 8000,  8090, 8180 

Support Levels : 7825, 7735, 7650.

Nifty is in short term bullishness.. It would get out of the short bullishness

only if it closes below 7850. Nifty is expected to face resistance around 8025 and support around 7825 during the week.

Breakout level for the week is 7970, which if crossed would qualifty for a Buy on Decline for the week.

Advice for Traders ::

Nifty continued its uptrend for Two weeks and short term uptrend can be expected to terminate during the week or the next week. It is to be seen whether Nifty would cross 7970 to maintain the uptrend for the week. However, it would become weak only if it closes below 7850.