Weekly Wrapup ( Week ending 04/Mar/2016)

Dear Reader,
               Welcome to Fortunes at nrptrends.
This is weekly wrapup of Indian equity market for the week ending on 4th of March 2016.

Continuing its uptrend, the equity benchmarks closed marginally higher for fourth consecutive session. Banks, metals and select auto stocks led the drive deriving support from a pro-development budget by the FM. Positive global cues also supported the market.

 BSE Sensex rose 39.49 points to 24646.48 and NSE Nifty 50 advanced 9.75 points to 7485.35 after hitting an intraday high of 7505.90. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 1.1 percent and 0.75 percent, respectively.

The equity benchmarks post biggest weekly gains (6.4 percent) since May 2009, aided mainly by banks. The rally was supported by government's fiscal prudence in Union Budget. This has renewed hopes of rate cut by RBI which is being expected by the Corporate community.

New RBI capital rules have also helped to improve the market sentiment. Secondly, major of the NPS's have been identified by the RBI and its confident to identify the remaining till end of march.This and the Central Vigilance Commission is bound to provide great confidence to the Banks.

The allocations by FM to ailing banking system in this budget was firstly seen a trifle one by the market but FM has assured of greater inflows wherever necessary. This made Bank Nifty surge more than 11 percent (in a week), the biggest weekly gain in 10 years. Positive global cues has played its role too.

Coming days markets will watch out for rate cut in immediate term. Happening which would definitely fuel up the uptrend in select sectors. Secondly the implementation of the policies would have to be watched out. Quarterly results could be a dampener for the uptrend though. It is highly difficult to be optimistic about the results.

TECHNICAL ANALYSIS :-

NIFTY 50 :- 

As per intraday chart Nifty 50 is well placed above the 200 MAE trend line and closed marginally above 35, 100 MAE trend lines but breached MAE 7 which indicates that there is some weakness in the market sentiment. This situation calls for a correction. But the EOD chart speaks differently. ( see image )

NIFTY 50 INTRADAY CHART

NIFTY 50 EOD CHART

As per the EOD chart Nifty 50 is trading above MAE 7 & MAE 35 which indicates that long positions are building up in market but is yet to crossover crucial resistances at MAE100, & 200. Nifty 50 is likely to face resistance at 7594 crossing which we are likely to see it reaching 7800 flawlessly. ( see image)

This is it for now in this weekly wrapup. Keep visiting for more. Good bye and take nice care of yourself. Happy Investing from Fortunes at nrptrends.
   -- Dr. N. R. Phade