Saturday, February 02, 2013

Weekly Review 04.02.2013

Dear All,

The RBI in its third quarter monetary policy review on Tuesday surprised the market by cutting short-term lending rate called repo by 0.25% to 7.75% and Cash Reserve Ratio (CRR) by similar margin to 4%, releasing Rs 18,000 crore primary liquidity into the system.

The Reserve Bank of India also lowered its growth projection for the Indian economy as new investment demand continues to remain muted. The banking regulator now expects the domestic gross domestic product (GDP) growth at 5.5% in the current financial year. It had earlier projected 6.5% growth in July, 2012. But lowered it to 5.8% three months later as investment demand slowed, consumption spending moderated and export performance eroded.

Growth in Indian manufacturing slowed to a three-month low in January, as new export orders lost momentum, a business survey showed on Friday, underscoring the risks to India's economy from weak global demand, particularly in Europe.

The HSBC Markit manufacturing Purchasing Managers' Index (PMI), declined to 53.2 in January, after rising to a six-month high of 54.7 in December.

Nifty ended over 1% lower in the week to February 1 weighed down by profit booking in rate sensitive stocks after the Reserve Bank of India at its policy meet struck a cautious note on further easing as it awaits government's plan to control the rising fiscal deficit and said that inflation continues to remain above its comfort zone.

>>> NIFTY <<<
Last week our entire Supports got broken, Nifty broken even 6008 and its time for us to find out the alternative (counts) analysis for next week and coming days too..

As Such we have 2 alternatives discussed below :-

Alternative - 1 :-

>Click the chart to see on full screen<

Entire Support given last week has been broken and hence forth re-counted,above give is first alternative.

Last leg of 5th wave is going on, in that case (i),(ii),(iii),(iv) and (v) or a,b,c,d and e must be there and 5965 should give a good support.

Alternative - 2 :-

>Click the chart to see on full screen<

Second alternative shows that wave (1) got completed and broken the important trend line support for a wave 2 correction which was divided as a,b and c. If 5970 gets broken 5890 shall be tested soon.

>>> BANK NIFTY <<<

As given Last Week :-

>Click the chart to see on full screen<

>Click the chart to see on full screen<

> Happened and Yet to :- <

>Click the chart to see on full screen<

As Said Last week 12523 gave a good support and end its 4th sub wave. On going may be 5(ii) as 5(i) completed its journey at 12960. Support between 12580 to 12600.


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