WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

LIMITED DOWNSIDE...!!!

Planetary Position ::  During the current week Moon would be transiting  from Uttara in Virgo  to Visakha in Libra.

Sun transits in  Jyeshta and Moola   in Scorpio and Sagittarius. Sun enters Sagittarius on 16^th December  

Mercury   transits  in    Moola constellation in  Sagittarius.

Venus transits in   Jyeshta in Scorpio and Moola in Sagittarius.

Mars , exalted,  transits in    Sravana  constellations in  Capricorn .  

Saturn transits in  Scorpio  in Anuradha in Leo  Navamsa.

Jupiter , in retrograde motion from December 9^th   to 8^th April 2015, transits in  Cancer in Aslesha constellation in Pisces  navamsa .

Rahu and Ketu continue their transit in Virgo and Pisces respectively.

Nifty broke down from the monthly astro range and is close to achieving Third down side target of about 8150.

Last week’s fall could be attributed to waxing square between Uranus Pluto which would be exact  on 15^th December and market should signs of stability thereafter.

Outlook for Next Week :: (15.12.2014 to 19.12.2014) …  

NIFTY :: 8224 (-314) (Strong Support around 8050 - 8100)

Fall is always swift and steep. It took Six weeks to go up about 700 points while it took just a week to wipe nearly half the gain. Correction has been over due and the same has come during last week and was rather deep. After Friday’s market hours, highly disappointing IIP figures were released and would have its negative effect on Monday opening. Further global markets were also in deep red and would add to the woes on Monday. However, the point is where could this correction end. Investors, who have been waiting for a correction  to enter should he happy. While it is not possible to buy at the lowest rate, investors can enter in a staggered manner / SIP mode. Last week’s fall was one of the steepest weekly decline in the recent past. Macro factors continue to be encouraging with crude oil below $60. Growth is a matter of concern and it is time for a rate cut which could  spur growth. Correction can be expected to end during this week around 8150 or 8050 (if this is a correction for the recent rise.) . On the otherhand, if market had achieved an intermediate peak, correcton could be even far deeper. In any case, a bounce from the aforementioned levels is highly probable. Passage of Insurance Bill is very important for restoring market sentiment. As the overall sentiment is positive and a reasonable correction has come, it is time to start buying quality stocks .

Present positive  Macro factors would have their positive effect on corporate earnings with a lag effect and the market is ahead of fundamentals. Falling crude and commodity prices coupled with lower interest cost (rate cut to be announced) would all help improve corporate earnings next year and market appears to have largely factored them in their prices. All in all, Stock market is a barometer of the economy and discounts future in advance. Despite these positive factors, market appears to be  generally fully priced and stock picking is the only way to perform in the market. Next Big event is Budget and positive sentiment can be expected to prevail in general till budget.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 8450, 8215, 8050 and 7500 respectively and would act as supports / resistances. Nifty close to 50DMA and might not go below 100DMA as intermediate trend is positive.

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 17% above the long term PE multiple.  Further fall to about 20PE would make it attractive. TTM EPS and  PE would improve after Q3 results.  Psu Banks seem to be enjoying high degree of margin of safety and qualify for a Value Buy as market can not complete its bull run with out the participation of this sector.

Strong long term support would be around 7500

level and Medium term support is 8050. Nifty is below short trm support of about 8350 and would become bullish for short term only above 8350.

Technical Levels ::

For the coming week, Nifty spot is expected to face

resistance at 8315,  8405, 8500 and find support at 8130, 8045, 7955.

Minor resistances may be found at 8325, 8405, 8455, 8530  and minor supports at 8120, 8045, 7995, 7920.

Nifty is in short term correction and would get into short term bullishness only when it closes above 8325.

Breakout level for the week is 8630, which is far away and break down level for the week is 8130. Further bearishness for the week is possible only when it continuously trades below 8130 and can offer good support for a reasonable bounce.