WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

Further Upmove  above 8450  …. !!!

Planetary Position for the Week

- Moon would be transiting  from Punarvasu in Gemini to Makha in Leo.

- Sun transits in  Poorvashadha   in  Sagittarius.

- Mercury   transits  in     Uttarashadha and Sravana  constellations in  Capricorn.

-  Venus transits in  Uttarashadha and Sravana in  Capricorn.

- Mars moves to Aquarius, an airy sign, and transits in Dhanishta. A fiery planet in Airy sign should aid bullishness.

- Saturn transits in  Scorpio  in Anuradha in Virgo 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 crossed the higher end of the monthly astro range i.e., 8279 and nearly achieved the first target too during the last week.

Nifty Outlook for Next Week :: (05.01.2015 to 09.01.2015) …  

NIFTY :: 8395 (+194) (Buy on Decline … )

New Year begins on a bullish note and Nifty gains 112 points in the first Two days of the new year. After Four weeks of fall / sideways consolidation, market moved up smartly last week on Friday in the new year. However, Nifty could not make a new high in December after the high of November 28^th. As Q3 results season is about to commence, market appears to be coming out of consolidation mode.

January month market movement would be driven by Q3 results, Funds flows into the markets, Government reform measures and INR and Crude movement besides Geo political factors.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 8265, 8310, 8125 and 7650 respectively and would act as supports / resistances. Nifty is below 50 and 20 DMA and is above 100DMA and could offer support. 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 21.50 which is about 19% above the long term PE multiple.  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 7650

level and Medium term support is 8125. 

Technical Levels ::

For the coming week, Nifty spot is expected to face

resistance at 8485,  8580, 8675 and find support at 8305, 8215, 8120.

Minor resistances may be found at 8455, 8505, 8530, 8575  and minor supports at 8335, 8285, 8260, 8215.

Nifty gets out of consolidation mode and narrow range and is bullish and would get out of the same only if it closes below 8250. However, there is resistance around 8450 and only if it is crossed decisively, further upmove can be expected.

Breakout level for the week is 8455,  and break down level for the week is 8210.

Advice for Traders ::

January derivative series starts with a bang with Nifty going up by more than 2.25% and appears set for further upside as Nifty starts moving up after nearly Four weeks of down / consolidation move. Q3 results would provide the necessary direction and can be expected to be better in general, particularly banking sector which could lead the broader indices. If 8450 is crossed, Nifty could test a new high before any meaningful retracement. Stay long if it crosses 8450 with suitable stop loss or buy on decline with 8250 as stop loss (on close basis).