CRUCIAL WEEK WITH BULLISH BIAS
Planetary
Position :: During the
current week Moon would be transiting from Krittika in Aries to
Punarvasu in Gemini.
Sun
transits in Pushyami in Cancer .
Mercury
transits in Aardra and Punarvasu in Gemini.
Mars
transits in Chitta constellation in Libra in Scorpio.
Saturn
gets into direct motion and presently in Visakha constellation in
Aries navamsa .
Jupiter
transits in Pushyami in Cancer .
would
act as a reference range for the next Three weeks and Nifty would be
bullish
above
the high of the range(7685) and would be bearish below the Low of
this range(7459). Sun conjunction Jupiter could continue to lend
support to Banks in the beginning of the week and could drift lower
later.
Nifty
Outlook for Next Week :: (21.07.2014 to 25.07.2014) (Close
to Resistance .. Stock Specific Approach)…
Nifty gave more than
expected pullback after one of the most volatile (budget) weeks. It
recovered most of the losses of the previous week and what was
expected to be a pullback appears to be a short term reversal.
However, stock specific approach is the need of the hour as all
stocks do not participate in a rally.
The week was quite
positive and Nifty recovered nearly 3%. Technically, there is strong
resistance for Nifty around 7750, which if crossed decisively would
make the market bullish for the week. On the otherhand, if it trades
below 7575, short term bearishness would set in. Hence this is a
crucial week (with bullish bias) on the back of huge gains of the
last week. As the Government is pro business and investing community
and aims to revive growth cycle, medium and long term is quite
bullish and ofcourse, short term trend keeps oscillating. Nifty which
was below 20 DMA last week is once again above and the short term
trend is up. However, since market has run up much ahead of
fundamentals, a phase of consolidation / correction before a fresh
bout of uptrend. Hence caution is advised at higher levels and scrip
specific approach needs to be followed. Lower inflation numbers of
last week is a blessing for the Government and RBI for their policy
action.
Post
Budget correction in most stocks could be a welcome feature for long
term investors who had missed out previously. Technically, Medium and
Long term trend is quite bullish . Present bull run is only about
8
months old, further rise over a period of next One year can be
expected
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.
Nifty continues to be
above 200 DMA and 50 DMA too is above 200 DMA suggesting that the
long term bullish trend is intact. Nifty is quoting at a PE of
more than 20, which is about 15% above the
long
term PE multiple. Hence, further upside ( 8000+ or 8500+is possible
during the year / befre next Budget)
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. When
fundamentals too start improving, further rise over a period can be
expected.
Hence
strong long term support would be around 6600 level and Medium term
support is 7000.
For the next week, break
down level is 7760 and if it unable to pierce this level, correction
too is possible. On the other hand , if it trades above the same
consistently, further rise and a new high can be expected.
Nifty had more than
expected pullback last week and is above 7650 level. As mentioned
earlier, Nifty can be expected to face resistance at 7760 and it
trades above the same , further bullishness can be expected, failing
which it could go down. Weekly open level may be kept as a reference
and long positions may be continued only as long as Nifty sustains
above the weekly open.
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
Short positions may be avoided as long as it maintains / closes above
Weekly open and vice versa
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