Nifty Report and forecast 3rd May 2016

Technically, in weekly charts Nifty Future is forming reversal Doji candlestick pattern consecutively for two weeks below psychological level of 8000. Today's trading session Nifty breached the important support mark of 7800 and gave closing below the same. So correction can be seen till 7700 levels which is a strong support going forward according to gap theory.

Fundamentally, the Indian market is slightly running ahead of fundamentals and valuation which is not cheap as we have seen Nifty PE ratio is hovering around 22, but they are not extremely expensive. The market is expecting the earnings to improve as well as macroeconomic condition.

Stock specific we expect Apollo Hospital to go further down. The stock in its intraday chart is consolidated above the support mark of 1294. If it manages to  breach the level of 1294  the stock is likely to move till 1280 . Traders are advised to maintain a stop below 1305 to control risk in adverse situation.

Support- 7750,7700,7650

Resistance:- 7900,7950,8000

Nifty Report and forecast 2nd May 2016

Technically, Nifty on daily charts looking bullish. Nifty traded in tight range of 7800-8000. Unless nifty  does not breaches level of 7800 and sustain below it on closing basis , the probability of recovery from this support mark is high. It is traded above 50 & 100 DMA which indicates chances are very high that it will break above the level of 8000.

Fundamentally also, The Indian market is slightly running ahead of fundamentals and valuation which is not cheap as we have seen Nifty PE ratio is hovering around 22, but they are not extremely expensive. The market is expecting the earnings to improve as well as macroeconomic condition.

Stock specific we expect Zee Entertainment Ltd to go further up. The stock in its intraday chart is about to break out above the major resistance of 418-19. If it manages to move above the level the stock is likely to move till 425. Traders are advised to maintain a stop below 415 to control risk in adverse situation.

Support- 7800,7750,7700

Resistance:-7950,8000,8150

Nifty Report 28th April 2016

Technically, Nifty on daily charts looking bullish. Nifty witnessed volatility due to expiry of future and option contract. However, today nifty tested its important psychological level of 8000 but could not able to sustain above it.  Unless nifty  does not breaches level of 7800 and sustain below it on closing basis, the probability of recovery from this support mark is high.

Fundamentally also, Nifty PE Ratio is hovering around 21.65 although it is not cheap, neither we can consider it expensive and there is room of expansion as we expect corporate earning to deliver near to consensus growth expectation of 14-15 per cent FY 17. Nifty P/B ratio is 3.24, only a move above 4.00 could be consider as overbought. So no concern in that front also.

 

Support- 7800,7750,7700

Resistance:-7950,8000,8150

 

Nifty weekly forecast 02-05-2016 to 06-05-2016

Last week Nifty future was on roller coaster ride as it closed in negative with marginal losses to hit lowest level in more than two weeks. The negative sentiments in the markets was triggered by the Japanese central bank, which held off from expanding monetary stimulus, pulled global stocks lower. Market breadth indicating the overall health of the market was mixed as buying was witnessed in sectors specifically in private banks, realty, metals, cement, and select mid cap stocks etc.  

Macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), movement of crude oil prices and next batch of Q4 results of companies like HDFC ltd, Adaniport, Eicher Motors, Hero Moto Corp to be announced will dictate trend of the market in near term.   

Nifty Future gave weekly closing at 7894.80 with marginal losses of 16.35 points.

Technically, in weekly charts Nifty Future is forming revesal Doji candlestick pattern consecutively for two weeks below psychological level of 8000 which suggests indecisiveness for the continuation of the current up trend.  Thus, in near future level of 8000 will act as an immediate resistance and on downside immediate support level is at 7800 levels.  If it breaches its immediate resistance level of 8200 would be the next target and on down side if support is broken correction can be seen till 7700 levels which is a strong support going forward according to gap theory. 

Weekly Nifty Forecast 25-04-2016 to 29-04-2016

Nifty Future gave gap up opening this week ,it hit high of 7984.50 since wholesale prices fell for a 17th straight month in March, declining by an annual 0.85 percent. It traded in tight range between 7985 and 7850,thus formed a doji candlestick pattern on weekly charts, indicating indecisiveness among traders,Overall health of market was indicating that bulls were taking control over bears for the short term up trend of index.

Nifty Future given closing at 7915.10 with the marginal gain of 47.25 points.

Trend in global market, investment by FII and DII , movement of rupee against dollar and crude oil price movement will dictate trend in near term. Market may remain volatile ahead of expiry of derivative contracts as traders may roll over their position from near to next month contracts .Stock specific movement can be observed as India bulls Housing Finance, India bulls real estate, ACC, ICICI Bank, Axis Bank, Yes Bank etc. will declare their quarter four numbers in upcoming week.

Technically, Nifty future has sustained above its 200 days moving average this week which is lying near the level of 7870 and is facing strong resistance at the level of 8000. Any fall below the 7850 support mark can result in some correction in index till the next support level of 7790, while with the crossing of major resistance of 8000, it may test the level of 8150.