Sunday, August 07, 2016

Weekly Review 08th August, 2016

Dear All,


Nifty was sluggish through out the week, managed to bounce back on friday supported by Liquidity gush in the system. The PMI data points towards an acceleration in the economy. The macro indicator suggests whopping 5.2 per cent expansion in July as against 2.8 per cent in May and 2.8 per cent in the corresponding previous year. Markets too are continuously discounting the encouraging macroeconomic numbers. July automobiles growth numbers surprised the Street.

Key events of the week: Foundation for the historic path-breaking tax reform has been laid down last week. Now the superstructure will be built over a period of time through the state approvals etc. GST will truly lead India to accelerated corruption free inclusive growth for the masses in the country.

Far reaching amendments were cleared by the law makers for speedy and hassle free debt recovery in a time bound manner further enhancing the Bankruptcy Code for making India Bad Debt free economy.

There was covering of short positions with the clearance of the GST Bill in the Rajya Sabha and the quantitative easing by the Bank of England also aided the rally. Most of the gains were led by the Indian consumption sectors such as auto and financials among others.

The Bank of England on Thursday reduced its benchmark interest rate to a record low of 0.25% from 0.5%, the lowest in its 322-year history.

The India Meteorological Department on Thursday said that monsoon rains during the week from 28 July to 3 August 2016 was above long period average (LPA) by 6%.

Further, reports suggest that the government is likely to table the GST Bill in the parliament on Monday, August 8. The target for the rollout of the GST Bill is scheduled for April 01, 2017.

>>> Open Interest Index Futures <<<

The week gone by marked the beginning of the August Expiry. Since 29th July, FII and PRO combined have bought 1711650 shares in Index Futures. This indicates that big players are building long positions in market. Entire week saw a continuous below average buying in Index Futures.


>>> Open Interest Index Options <<<

The week gone by marked the beginning of the August Expiry. Since 29th July, FII and PRO combined have sold 107913975 shares in Index Options. Market witnessed profit booking for the entire week except on Friday, where the bulls took over the control again with an above average buying of 6692925 shares in index options.


The week gone by marked the beginning of the August Expiry. Since 29th July, FII continued its buying spree in the cash segment with a buy totaling worth Rs. 2821 cr. DII, on the other hand stood opposite with a net sell worth RS. 1361 cr in the same period. Combined, shares worth Rs. 1460 cr were bought for the week.


The combine FII and Pro have seen a continued increase in long position in Index future and an increase of Short position in index options. In the cash segment FII and DII combined are net buyers of Rs. 1460 Cr since 29th July 2016

Let's See Technical.

>>> Nifty Weekly Chart <<<

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

Price closed above previous high 8654 and RSI gave a Break out. Key Resistance 8710-20 must give a confirmation to bulls for a Go ahead Rally.

>>> Nifty Daily Chart <<<

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RSI took support from the trend line, must cross above trend line for a break out confirmation. Price must cross and close above 8720 for a healthy rally.

>>> Nifty Hourly Chart <<<

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RSI continue to make a LH while Price making a HH. Next week if RSI gives a break out - Expect a good short covering and rally.

>>> Bank Nifty Daily Chart <<<

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Price making a throw back rally - after a break down with RSI.

>>> SBIN - Follow Up <<<

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Price making an upmove - may face resistance @ 235.50.

>>> JUSTDIAL - Posted Last Weekly Review <<<

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Last Weekly Review Updated Just Dial as a Break Out - See what happened.

>>> JUSTDIAL - Break Out Failed & SL Hit <<<

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Break Out Failed. SL hit and Exited with Loss.

>>> AMBUJA - Posted on 03rd Aug, 2016 <<<

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Wrote on 03rd Aug, 2016, Ambuja completed ABC wave and may have a possible correction.

>>> AMBUJA - Follow Up <<<

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Cross and close above the channel may reverse the trend and current count and analysis get negated.

>>> Performance till 05th Aug, 2016 <<<

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Above performance is not a Promise or guarantee for the given Profits or Loss. Performance given based on 1 lot at a time and clients Profit differ as per the margin availability and Number of Lots taken by them. We may or may not re-enter the Calls given here hit Stop Loss, as per market movement. The charts given above are just for educational purpose only and we don't recommend any Entry / Buy or Exit / Sell. Reader must taken their own decision or consult their qualified Analyst before making any decision.