Weekly Astro Technical Guide (2.2.2015 to 6.2.2015) ::

Further Correction But Be Ready to Buy on Deep Decline  …. !!!

 Planetary Position ::  During the current week Moon would be transiting  from Punarvasu in Gemini to Poorvaphalguni in Leo.

Sun transits in  Sravana in   Capricorn.

Mercury   transits  in      Sravana  and Uttarashadha constellation in  Capricorn and  in Retrograde motion from 21.1.15 night till 11.2.15.  There could be review of decisions taken during Mercury retro period and information / statistics could be unreliable. Mercury Retro period indicates dual movement During Mercury Retro period, Market had gone up smartly in First half and started making a U turn in Second half as it is to have dual movement..

Venus transits in    Sathabhisham   in   Aquarius.

Mars transits in  Aquarius, an airy sign, and transits in  Poorvabhadra  . A fiery planet in an Airy sign normally aids bullishness. Market had gone up smartly during Mars’ transit in Aquarius from 5^th January.

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   Aquarius navamsa .

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

Astrologically, Wednesday is a sensitive / crucial day of the week and a wide range day.  Further correction can be expected till Mercury turns direct on 11.12.15 and could again pick up later.

Nifty Outlook for Next Week :: (02.02. 2015 to 06.02. 2015) …  

 NIFTY :: 8809 (- 27) (  RBI Policy to have a Bearing .… )

 While the net fall in Nifty was meager, there was a perceptible change in the sentiment due to the steep fall on Friday from high levels. Nifty had gone up without  the usual correction leading to a steep fall on Friday Besides, PSU Banks reported disappointing results due to spurt in NPAs. As Banking stocks constitute a sizeable portion of Nifty, Nifty tumbled on Friday.  Corrections are a common feature of the market  and investors can utilize these corrections to buy quality stocks.

Budget is the key for further market movement.  

Inflation and CAD, under control, gives scope for interest rate reduction to spur economic growth.

Budget can be expected to announce path breaking measures and new  stock market discounts future and inview of the optimistic future, further optimism in markets is possible  over a period of time..

Once GST becomes realty, most of the bottlenecks in interstate trade would be removed and there would be ease of doing business with proposed changes and would attract consider investment into the country and would further drive the markets.

However, there would be a lag between effort and the results and once corporate results improve confidence would further grow.

February month market movement would be driven by Q3 results, Funds flows into the markets, RBI Policy on the 3^rd February, Government reform measures and INR and Crude movement besides Geo political factors. As First full fledged budget of the new Government is only about Four weeks away,  optimism can be expected before Budget . Any further correction relative to recent rise can be considered as an opportunity to Buy.  

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 8530, 8420, 8255 and 7840 respectively and would

act as supports / resistances. Nifty is above all averages .

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 22.45 which is more than  20% above the

 long term PE multiple.  Nifty PE, though not in bubble zone, is indicating caution and earnings need to improve over the next Two quarters drastically failing which a reversion to mean is possible.  While 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 without the participation of this sector, recent results indicate that it would take considerable time for them to perform.  Policy initiatives might improve sagging Infra and Realty sectors.

 .

Strong long term support would be around 7850

level and Medium term support is 8250. 

Technical Levels ::

For the coming week, Nifty spot is expected to fbe Bullish above 8850 with

resistance at 8925, 9005, 9055, 9140 and is expected to Bearish below 8780 with Supports at 8685, 8610, 8560, 8475.

Short term trend for Nifty is presently bearish which would be confirmed if it closes in the negative and below 8800 and would become bullish only if it closes above 950.

Breakout level for the week is 9050,  and break down level for the week is 8725. Nifty becomes further bearish only if it continuously trades below 8725.

Advice for Traders ::

After the expiry of January derivative series, Bears established their hold with a massive fall on Friday. Barring any pleasant surprises in the RBI policy, further correction can be expected. However, market can be expected to rebound before Budget and a new high could be expected. While the fall is an opportunity to Buy for investors, traders need to be cautious and track the short term trend.

 Weekly Open level is very important for the entire week.
Short positions may be avoided as long as it maintains / closes above
Weekly open and vice versa

Astro Technical Outlook for Monday, 2nd February, 2015 ::

Moon transits in Punarvasu in Gemini and Cancer.,\

Market can be expected to recover in the opening session and closing session and remain zigzag in the mid session.,

Friday's trend could be expected to continue in general and for traders it is case of "Sell on Rise". Hence caution is advised at higher levels.,

Individuals born in Cancer and Scorpio and Rohini, Hastha and Sravana are advised to be cautious. 

Disclaimer ::  Above analysis  is based on planetary movements and is intended for guidance / educative purpose and traders are advised to be highly cautious with proper risk management mechanism as Trading is highly risky and not trade only based on the analysis given above.