Weekly Technical Outlook for Week 18 – 23 MAY 2015

Posted By : Kishore B.S

HIGHLIGHTS
> NIFTY closed 0.9%HIGHER for the week although wild intraday swings with added volatility and choppiness
> The deflationary environment continues with persistently declining negative WPI inflation (more than -2%) based on last week data released
> Bank NIFTY recovered from 17600 odd levels after hope of rate cut from RBI due to declining inflation
> FIIs still pulled out some money from Indian markets as delay in policy reforms and MAT issues. But markets found a stable DII inflows
> Over coming weeks ahead monsoon and global markets direction could be key trigger for markets
> 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 215

NIFTY
TECHNICAL VIEW – BUY*(CMP = 8262)
*THIS TRADE IDEA IS BASED ON TECHNICALS ONLY NOT SUPPORTED BY FUNDAMENTAL RESEARCH*

MAY 2151

Observations*
> NIFTY is the verge of forming an inverse H & S pattern which is of bullish in nature
> NIFTY also closing above 13 – EMA is a positive sign for short term
> NIFTY can be bought above 8285 – 8300 with stop loss below 8177 for targets 8455 – 8463 / 8509 / 8636
> Until 8078 (Medium term) and 8180 (Short term) hold one can be bullish on the markets

The key support & Resistance zone for NIFTY:
S -8181/8120/ 8078/ 7997
R – 8355/ 8411/ 8453 – 8463 (Cluster Zone) / 8509 / 8636

Trade Setup 1:
Buy above 8285 – 8300 CMP (8262) and on any dips around 8190 – 8200 for targets 8453/8509/8636

Mantra for the Week:
We recommend being more on stock specific rather than betting on specific sector. Maintain strict stop losses as markets are choppy and volatile wild swings are expected to continue
Range for the Week:

NIFTY can be in the range around 8180 – 8500

Calls for the Week:
*THIS TRADE IDEA IS BASED ON TECHNICALS ONLY NOT SUPPORTED BY FUNDAMENTAL RESEARCH*
MAY2152

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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