WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

FURTHER UPTREND….!!!

Planetary Position ::  During the current week Moon would be transiting  from Jyeshta in Scorpio to Sravana in Capricorn.

Sun transits in Swathi    in Libra.

Mercury in Direct motion  from 26^th October  transits  in Hastha and Chitta   in   Virgo .

Venus transits in  Swathi in Libra.

Mars  transits in   Moola constellation in Sagittarius .  

Saturn transits in Visakha constellation in Libra and in  Gemini Navamsa .  

Jupiter transits in Aslesha constellation in Cancer and in  Aquarius navamsa ..

As opposition between Sun/Venus and Uranus is over, market started recovering and can be expected to continue for this week and November 2^nd week can be expected to be quite volatile in view of certain unfavourable aspects.

Nifty Outlook for Next Week :: (27.10.2014 to 31.10.2014) …  

NIFTY :: 8034 (+234) (Bearishness  only below 7950….)

Nifty had taken a U turn after 4 weeks of fall and had gone up by 3% and had gone up all the trading days of the week. Last week before Diwali, sentiment was quite bullish. Nifty appears to have taken support  at 100 DMA and bounced back strongly.  This column has been mentioning about Diesel deregulation, Gas Pricing and Coal block reallocation and incidentally all the issues were addressed during the last week and the sentiment has become upbeat. Further, Budget exercise would pick up momentum and GST rollout, DTC and interest rate cut  would be the next priorities of the Government in the reform process. With the Two State Governments in BJP’s kitty, Centre has become more strong and more aggressive and path breaking reforms could unfold.

Nifty is once again above 50 DMA having taken support from about 100DMA. It is once again above key averages and could be on its way up once again and would become weak only if it closes below 7950.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 7920, 7940, 7775 and 7135 respectively and would

act as supports / resistances.

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 20.65, which is about 17% above the long term PE multiple.  Hence, further upside (  8500+ is possible  before next Budget)  

in view of the  stable and performing Government  at the centre as earnings would go up because

of favourable atmosphere .  

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

.

Strong long term support would be around 7150

level and Medium term support is 7700.

Technical Levels ::

For the coming week, Nifty spot is expected to face

resistance at 8105,  8195, 8285 and find support at 7925, 7835, 7750.

Minor resistances may be found at 8070, 8110, 8135, 8175  and minor supports at 7960, 7920, 7895 and 7850.

For short term Nifty is bullish and would become bearish only if it closes below 7950 and could encounter resistance could encounter resistance around 8175 during the week.

Advice for Traders ::

Sentiment improved dramatically on the eve of Diwali and Nifty gained about 3% for the week. 100 DMA had lent strong support for Nifty. As Nifty trading at around higher levels for the week, further uptrend can be expected. In view of derivative expiry, stock specific action is most likely and bullish stocks would become further bullish and bearish stock could become further bearish.