Weekly Technical Outlook for Week 11 – 16th May 2015.

Posted By : Kishore B.S

Weekly Technical Report

HIGHLIGHTS
> NIFTY closed 0.1% HIGHER on the first week of May forming Doji on weekly charts after a persisted weakness making low below 8000 (7997) in a complex triple three correction just two points away from proportional target of 7994.80
> The week was a bumpy ride seeing big moves on either side of the indices after weak start ending strong with 1.7% on the final day of the week with neutral gains of 0.1% for the week after government assuring to clear Minimum Alternative Tax (MAT) as soon as possible
> Still FIIs were net seller for the week persistent sold 1000 – 1600 Crs almost each day last week
> China cutting interest rates 3rd time since Nov ’14 as economy spurs
> Technical NIFTY completed the triple zigzag correction which is one of the rarest patterns seen in the indices
> Overall trend remains bullish for the forthcoming week in NIFTY and seems to be sector specific action ahead. As it’s a bull market complex correction there will be opportunities on either side of the markets still time wise correction left on a broader picture we can expect Flat B Wave has started or even triangular pattern.
> The mantra would be wait and trade accordingly for minor moves until clarity emerges in the major trend
> The key triggers to drive the markets for the forthcoming week would be Modi Government completing 1 year term in power, Parliamentary reforms and Global market trends

May 2015

NIFTY
TECHNICAL VIEW – BUY* (CMP = 8191)
*THIS TRADE IDEA IS BASED ON TECHNICALS ONLY NOT SUPPORTED BY FUNDAMENTAL RESEARCH*
Observations*

May2 2015

Observations*
> NIFTY after a triple zigzag rare and complex correction halted tad below 8000 (7997) last week
> NIFTY has reversed after proportional decline of 850 odd points with a stellar rally last Friday (8/5/15) of 150 points (+1.7%)
> NIFTY witnessing buying from psychological levels is a positive sign of short term trend reversal after persistently being in the sell mode from past 4 – weeks
> Thus, from current levels (8191) to any dips up to 8120 NIFTY can be bought for targets of 8277/8352/8411 – 8427 (Cluster Zone) /8521 (Cluster Zone)
> Until 8078 hold one can be bullish on the markets

The key support & Resistance zone for NIFTY :
S – 8181/8120/ 8078/ 7997 below 7938/ 7813
R – 8375/ 8420/ 8453/ 8505/ 8550 (trend change)

Trade Setup 1:
Buy CMP (8191) and on any dips around 8120 – 8150 for targets 8277/8348/ 8411 – 8427 / 8511

Mantra for the Week:
We recommend being more on stock specific rather than betting on specific sector.

Range for the Week:
NIFTY can be in the range around 8100 – 8420

Calls for the Week:
*THIS TRADE IDEA IS BASED ON TECHNICALS ONLY NOT SUPPORTED BY FUNDAMENTAL RESEARCH*

May3 2015

Cheers!!
Team SMI
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www.stockmarketinstitute.org

(Inputs: Mr. Raju Angadi Vishwanath, Facutly – TA, Stock Market Institute, Bangalore India)

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