WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

FURTHER PULLBACK... !!

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

Sun transits in  Moola   in  Sagittarius.

Mercury   transits  in    Poorvashadha  constellation in  Sagittarius.

Venus transits in  Poorvashadha  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’s range between 26^th December and 29^th December(Friday to Monday) would be the reference range for the next month and Nifty would be bullish above the high and bearish below the low for the rest of the month.

Uranus in square to Pluto caused huge volatility breaking supports and resistances.

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

NIFTY :: 8225 (+1) (Scrip Specific Movements … )

While Nifty closed flat for the week, it was an action packed week with a bumpy  ride. Nifty fell sharply in the first half of the week only to recover by end of the week and to close flat for the week. Global cues caused both fall and rise during the week. Sharp recovery instilled optimism as Government too acted swiftly to table GST Bill in Lok Sabha. Government would be  finishing the (old) reform  agenda once it completes Insurance Bill and GST.  After this, it could be focusing on the Budget to usher in growth oriented policies. While fundamentals would take time to improve, Stock market usually discounts future in advance. Last week gave an excellent opportunity for investors to pick fundamentally good stocks at relatively lower  prices. The only cause for concern is the depreciating Rupee.

While Nifty appears to have bottomed out, it needs to close above 8250 to confirm the reversal of downtrend. IT stocks appears to have bottomed out and depreciating Rupee is favourable for this sector.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 8380, 8235, 8075 and 7550 respectively and would act as supports / resistances. Nifty closed below 100DMA for a day during the week and was quick in regaining the ground.

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 (During the week it touched about 20.35PE) . 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.  Policy initiatives might improve sagging Infra and Realty sectors.

Strong long term support would be around 7550 level and Medium term support is 8075. 

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 8320, 8390, 8485, 8510  and minor supports at 8130, 8060, 8015, 7945.

Nifty appears to have temporarily bottomed out but the reversal would be confirmed only on a close above 8250. If it closes above 8250, Long positions may be considered with a stop loss of 8175 on close basis.

Further huge resistance is also placed around 8400 – 8450, which if crossed only , a new high can be expected. Hence, it may not be a smooth ride for a New high in January.

Breakout level for the week is 8340,  and break down level for the week is 7885, which is far away. A close above 8250 could take Nifty to about 8400.

Advice for Traders ::

Bears appears to have given up after having a feast. Being last week of derivative closing, scrip specific movements are most likely. While Nifty gained smartly from low levels, several scrips appears to be in bear grip and might nosedive further in view of F&O expiry. Further Pullback is possible in view of the sharp recovery from lower levels.