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 5th
January.
Saturn transits in
Scorpio in Anuradha in Virgo Navamsa.
Jupiter , in
retrograde motion from December 9th to 8th 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 3rd
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.
