WEEKLY ASTRO GUIDE

INDIA HAS WON...GOOD DAYS AHEAD

BUY ON DECLINE FOR MEDIUM TERM

Dr.Bhuvanagiri Amaranath Sastry

FOR THE WEEK (19.05.2014 to 23.05.2014) ::

Planetary Position ::  During the current week Moon would be transiting  from Uttarashadha in Capricorn  to Poorvabhadra in Pisces.  Sun transits in Krittika in  Taurus. . Mercury transits  in Mrigasira in Taurus and Gemini. Mars  transits in  Hastha  constellation in Virgo  and has been in  Retrograde motion from 1^st March till 20^th May and goes into Direct motion from 20^th May.  Saturn too in  Retrograde motion from 2^nd March till 20^th July and presently in  Visakha  constellation in  Taurus navamsa . Jupiter transits in Punarvasu  in Aries and Taurus Navamsa.  Nifty’s monthly astro range would be decided by the range between 21^st May and 23^rd May, 2014.

Nifty Outlook for Next Week :: 19.05.2014 to 23.05.2014 (Buy on any Deep Decline for Medium Term)…  

NIFTY :: 7203 (+344 )                                                                                                                                                                                              

 “India has Won. Good Days lie ahead” is the first statement made by Narendra Modi after the signs massive mandate for BJP led NDA. Because of the decisive mandate for One party (after about 30 years), firm policy decisions can be expected. Going by Modi’s record in Gujarat, reform oriented, market friendly policies can be expected from this Government which would boost investment, employment etc., and create a congenial environment for business and Industry and as usual, Stock market started already discounting these factors  for the last Eight months. However, people delivered more than expectation and stock market would go up further too once policies roll out.

Nifty gained more than 4.50% last week on account of poll results / exit poll results. While profit booking can be expected at higher levels, lot of room exists for Medium term. However, sell off at higher levels suggests that short term peak is in place unless another euphoric event takes place (which could be presentation of Finance Bill in the Parliament). Cyclicals , rate sensitive and financials (which have been underdogs) could be preferred to exported oriented sectors such as IT, Pharma etc., Nifty reversed from a very crucial support level of about 6650. Key support level of 6650 can be considered as a major support level this week too.  “Market discounts future in advance” is proved right once again..While Investors can accumulate quality stocks on SIP basis, traders need to be highly cautious and traders may utilize Options route to hedge their positions in view of the expected volatility.  . Sectoral rotation has become order of the day and different sectors should be tracked to discern individual stock trends.   Investors need to accumulate quality stocks while traders need to be ever vigilant. 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.  Even with the recent  rise, Nifty is quoting at a PE of about 20 , which is about 10% above the long term PE multiple.  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 and further upbeat sentiment can fuel the indices as market are usually irrational and emotional. As a very stable and proactive Government is being formed, market can be expected to go up further over medium / long term.

Further, Nifty had been trading in a range of 4600 to 6300 for more than 4 years and  a  powerful breakout has taken place  for an initial target of about 8000 / 8500. Hence strong long term support would be around 6200 level and Medium term support is 6450 and for short term support is 6650.   Last week’s range being very wide, may not be surpassed this week.

For the coming week, Nifty spot is expected to face resistance at
7290,  7375, 7460, 7550 and find support at 6120, 7035, 6950, 6870.

Nifty is in short term bullishness with and immediate stop loss is 7050. As long as it holds above 7050, short term uptrend is intact.

Advice for Traders :: Another volatile week is ahead in view of the developments in the formation of Cabinet and other developments in Delhi. Short term peak could be in placed based on the market movement on Friday. Option strategies (such as Bull Spread / Bear Spread) can be employed by traders to contain the risk. Immediate stop loss for Nifty is 7050.

WD Gann’s
natural numbers which would act as natural support and resistance are
, :  ,  ,   6769,6913,6983, 7067, 7151, 7330, 7416, 7503 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