Saturday, January 30, 2016

Weekly Review - 01.02.2016

Dear All,

>>> Last Week Happened <<<

Positive cues from the global front such as bounce back of crude and Bank of Japan’s decision to keep the interest rates negative also supported the markets on friday - for a good come back rally.

In the first nine months of 2015-16 (April-December), the Centre’s fiscal deficit touched touched Rs 4.9 lakh crore, or 87.9 per cent of the Rs 5.5 lakh crore estimated in the Union Budget, as per the official data released on Friday.

Meanwhile, China's central bank, the People's Bank of China annouced a infusion of 440 billion yuan through open market operations to cater to the demand for funds ahead of the lunar year holiday.

The US Federal Reserve at its two-day policy meet kept interest rates unchanged citing growth concerns and said that it was "closely monitoring" global economic and financial developments.

>>> Week Ahead <<<

Market partcipants will be eagerly awaiting the Reserve Bank of India's first monetary policy review in 2016 at its meeting scheduled on Tuesday, February 02, 2016.

Auto stocks will be in focus as they would start releasing sales numbers for the month of January 2016.

The next week will be data heavy as we will have automobile sales numbers, PMI data and the Reserve Bank governor taking a decision on rates. This is the last meeting of the RBI before the budget and with the clean-up by banks as desired by RBI and government fiscal deficit being under control the RBI governor could cut rates by 25 bps. Markets to continue the momentum of the week with any rate action by the RBI governor acting as fuel to the fire. Auto stocks should be in focus with sales numbers as should budget beneficiaries

Further, manufacturing and services PMI data for January from Nikkei India will also be closely watched.

Last weekly Review - we have mentioned clearly that - Nifty chart on break out mode - as expected - after some consolidation - price rallied on friday. We expect price to continue moving upper side next week also. Lets go to technicals.


>>> Nifty Weekly Chart - Posted Weekly Review <<<

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

Last Weekly review - wrote as - Bullish Dragon fly doji on chart. Recovery on the way. See what happened.

>>> Nifty Weekly Chart - Happened <<<

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

Its a Bullish candle followed by a Dragon fly doji, Price made a high of 7575 last friday, Shows bulls are gaining strength.

>>> Nifty Daily Chart - Posted Last Weekly Review <<<

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

Wrote last weekly review - On Daily chart - Price made a false break down. Expect a fast recovery soon. See what happened.

>>> Nifty Daily Chart - Happened <<<

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

Price made a 3 days consolidation and zoomed on friday, shows - more rally coming soon.

>>> Nifty Hourly Chart - Posted Last Weekly Review <<<

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

It was a Bullish Wolf Wave - as posted last weekly review. See what happened.

>>> Nifty Hourly Chart - Happened <<<

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

Price broken previous low 7555 as shown on chart - If holds, can move till 7715. We are highly bullish with wolf wave pattern, as posted last weeklky review. We are Holding long for a big target.

>>> Bank Nifty Daily Chart <<<

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

Price need to cross the trend line - and flow of results from leading bank stocks may decide the trend. Though if price manage to cross the trend line - Fresh rally and short covering possible any time.

>>> Bank Nifty Hourly Chart <<<

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

After some consolidation on hourly chart - last week - Price made an one more attempt to come back and managed to close above 50 & 100 HMA. If price remains above 50 & 100 HMA next week, Expect more recovery and rally.

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

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

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