WEEKLY ASTRO GUIDE

COUTION @ HIGHER LEVELS

Planetary Position ::  During the current week Moon would be transiting  from Sathabhisham in Aquarius to Aswini in Aries.

Sun transits in Pubba in Leo .

Mercury transits  in    Hasta  constellation  in   Virgo.

Venus transits in Makha in Leo.

Mars  transits in  Visakha  and Anuradha  constellations in Scorpio .  

Saturn transits in Visakha constellation in Libra  .  

Jupiter transits in Aslesha in Cancer ..

Uranus trine Jupiter will take place in the last week of September which is a Bullish sign and any correction before that time could be an opportunity to Buy. Further, Range between Monday to Thursday (8^th September to 11^th September) would be the monthly astro range and Nifty  would be bullish above the high and bearish below the low the next Three weeks.

NIFTY::(8087(+133)   Caution at Higher Levels

Nifty gained under 2% during the Fourth week of gain and closed above 8000 mark through out the week. After crossing 6000 on 17^th February and 7000 on 12^th May, Nifty did not go below those mile stone numbers and it is to be seen whether the same would be repeated this time also  as it crossed 8000 level.

A wide range week can be expected this week and bullish bias can be expected as long as it maintains above the weekly open / 8050 level. However, caution is advised at higher levels as a minor correction is possible after this week. Stock / sector specific approach is better suited for the time being. As EPF funds are likely to come into stock market, domestic demand also would rise for the stocks and the bull run could sustain longer. With GDP showing an uptrend, macro fundamentals  are showing signs of improvement, economy can be expected to be rerated sooner than later. 

Nifty is trading above the monthly breakout level and the weekly break out level is 8185 and in case it is crossed further uptrend can be expected.  Further, Nifty has been scaling new high based on certain scrips but several midcap scrips which had run up ahead of fundamentals have taken a severe beating in the recent past. Hence, stock / scrip specific approach is the need of the hour .

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 for a considerable period also, it could be

taken as a correction. Stocks which have run up ahead of fundamentals are seen correcting. Most PSU stocks and Infra stocks corrected sharply during the last Two months.  

Technically, Nifty is bullish in all time frames and very short term trend could come under threat if it closes below 8050.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 7885, 7750, 7470 and 6875 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(7750) consistently.

Based on the present Government’s agenda, Infra  and Power sectors could come out of their problems

soon . Stocks of promoters with proven record may be preferred in these sectors. 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 (Golden Cross) suggesting that the

long term bullish trend is intact.   Nifty is quoting at a PE of about 21, which is about 15% above the long term PE multiple.  Hence, further upside (  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 because

of 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. (However, scrips are seen correcting though Nifty is very bullish)

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 8200 / 8500.. Hence strong long term support would be around 6900

level and Medium term support is 7475.

Technical Levels ::

For the coming week, Nifty spot is expected to face

resistance at 8180,  8270, 8360 and find support at 8000, 7910, 7820.

Minor resistances may be found at 8145, 8180, 8205 and 8240 and minor supports at 8045, 8010, 7985 and 7950.

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

only if it closes below 8050. If it does not close below 8050, it can be expected to  go upto 8250 / 8275. On the other hand, if it becomes weak by closing below 8050, it can be expected to test 8000/7975.

Advice for Traders ::

Nifty continued its uptrend for Fourth week and short term uptrend can be expected to terminate only if it closes below 8050. As it crossed 8075 last week with ease, it can be expected to go up further as long as it maintains above 8050 and could test 8200+ during the week. For long positions , 8050 (on close basis ) is the stop loss. Fresh long positions above 8200 would be highly risky and may be avoided.