WEEKLY ASTRO GUIDE FOR NIFTY

DUAL MOVEMENTS AS MERCURY RETROGRADE...

For the week 09.06.2014 to 13.06.2014

Planetary Position ::  During the current week Moon would be transiting  from Chitta in Libra to    Moola in Sagittarius . Sun transits in Mrigasira   in  Taurus. .  Mercury transits  in Aardra and got into retro motion  from 7^th June (till 1^st July) .Inview of the Mercury retrograde position, dual movement can be expected over  the next Three weeks and any statistics / information could be unreliable and misleading.  Mars  transits in  Hastha  constellation in Virgo .  Saturn  in  Retrograde motion from  2^nd March till 20^th July and presently in  Visakha  constellation in  Taurus navamsa . Jupiter transits in Punarvasu in Gemini in vargottama  Navamsa .  Mars’ hard aspect with outer planets ,Is set to bring in volatility  and correction. Nifty’s monthly  astro range was  the range between 21^st May and 23^rd May, 2014 and the high and Low during the  above period was 7381 and 7207 and Nifty achieved the first target of 7565 and the second target is 7740 where, if achieve, can be expected to face strong resistance

NIFTY::7583(+353)  

After a week’s respite, Nifty bounced back in style, this time as a pre budget rally. Midcap stocks continue to outperform  large cap stocks. Typical of a Bull market, market retraces to make a new high ie., One step back and Three steps forward). While RBI policy was mostly a non event, outlook was positive and the market reacted positively.  

Approach to suit the present environment is stock specific / sector specific, as sectors which had Performed in the last couple of years have started underperforming now. While most stocks go up in a Bull market, one needs to differentiate between  “Horses and  Donkeys”. As present bull run is only about  8 months old, further rise over a period of next One year can be expected  despite the sharp initial rise. Government’s policies would indicate their thrust areas and sector that would benefit out of it. However,Infra, Power w(s)hould be the core areas which any Government that harps on Growth can ignore. Hence, Companies in the above areas with sound management may be preferred. Further, Financial too are to be preferred as Finance is the life blood of any economy and the sector can not be ignored. The sectors which had underperformed due to policy inaction  may be preferred.

Budget in  July would spell out the major policies of the Government. However, it can be expected that FDI norms  liberalization would be a positive factor. GDP growth which has been at the lowest, needs to be revived through policy measures to support manufacturing sector.

Stock specific approach is to be followed and general positive sentiment can be expected to continue. Any major decline on account of RBI policy may be utilized to buy in view of the bullishness in Medium and Long term.  

Market is Bullish in all time frames i.e., Long term, Medium term and Short term. Key support levels for the above time frames are 6300, 6650 and 7200 respectively. 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 20.75 , which is about 15% above the  long term PE multiple.  Hence, further upside ( 8000+  is possible during the year)  in view of the  stable and performing Government  at the centre as earnings would go up because of favourable atmosphere .As a very stable and proactive Government has been  formed, market can be expected to go up further over medium / long term and market is always ahead of Fundamentals and this time is no exception. 

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 6300 level and Medium term support is 6700.

Weekly Resistance at 7670,  7760, 7845 

Weeklly Support at 7495, 7410, 7325.

Nifty is bullish and first sign of weakness would surface on a close below 7350 in first half of the week and below 7450 In second half of the week. Similarly resistance too can be expected around 7750.

Advice for Traders ::

Nifty staged a smart recovery and hit a new life time high and is to be seen how far this prebudget rally would go on. However, in view of the structural shift that is expected due to New Government’s policies, Buy on reasonable decline is always preferred. However, short term traders can keep the weekly  open level as reference for long / short positions.