Weekly Review - 08th Feb, 2016

Registered as Research Analyst :-

I'm Very Happy to announce that I have been granted a Registration as Research Analyst from SEBI.

I should thank all my Well Wishers, Friends, Blog Readers and Clients for giving me a great Support so far.

Best Regards.
K.Venkatesh - Research Analyst - SEBI Registration Number is INH200002671

Dear All,

Benchmark share indices logged their best weekly gains in seven years in absolute terms and best in four years in percentage terms, as foreign investors turned aggressive buyers after the Budget maintained the path to fiscal prudence.

Action was broad-based and driven by fresh buying interest from foreign institutional investors (FIIs). The US jobs data and Gyan Sangam will be key drivers for the markets next week. However, a breather would be welcome, as investors are yet to come to terms with the sudden reversal. Past rallies have seen investors being bewildered and wondering about the extent of the upmove. This lack of faith usually sees market move higher before a broader participation.

The March 15, 2016, advance tax payments will present the next reality check for earnings. The next big trigger is Reserve Bank of India (RBI)'s likely rate cut, which is due in April.

The finance minister in his Budget maintained the fiscal deficit target at 3.5 per cent of the gross domestic product for the next financial year.

The major highlights of the Budget include allocation of Rs 25,000 crore towards their recapitalisation of state-owned banks in the next financial year and infrastructure outlay at Rs 2.21 lakh crore for 2016-17, with road and rail taking up most of the allocation at Rs 2.18 lakh crore. To boost farmers' income, the Budget proposed an allocation of nearly Rs 36,000 crore for the agriculture sector and raised agri-credit target to Rs 9 lakh crore for the next financial year.

FIIs, sellers in the first two months of the current calendar year, turned buyers with net equity purchases of worth Rs 2,764 crore from February 29 to March 4, according to the provisional stock exchange data.

The rally in the markets was driven by rate-sensitive sectors, with banks gaining the most, along with capital goods and metal stocks.

The government will announce Index of Industrial Production data for January on Friday.

>>> Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Above is a complicated ABC-X-ABC Wave Structure. As mentioned on the Chart - Sub wave (4) had a Overlapping, while reversal from low, Price made a Gap Up opening above 7240 and continue to rally. We have no position in Nifty after the overlapping on chart.
As per chart, I assumed the current rally as wave (x) which may face its resistance near 7540 or 7580.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Hourly Chart - Key Resistance 7540 or the trend line as shown on chart.

>>> Bank Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Above 15240 if holds, may move till 15760 to 15775.

>>> Bank Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Price above 15240 should hold for some more rally till next resistance 15760-775.

>>> Reliance - Follow UP - Posted on 03rd March, 2016 <<<

>>> Click the chart to see on full screen <<<

Price still below the trend line as shown on channel.

>>> Eicher Motor - Follow UP - Posted on 25th Feb, 2016 <<<

>>> Click the chart to see on full screen <<<

Continue to Hold.

>>> Performance for the month end of Feb, 2016 <<<

>>> Click the image to see on full screen <<<

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