Weekly wrapup ( week ending 11/Mar/2016 )

Weekly wrapup ( week ending 11/Mar/2016 )

                               by Dr. N. R. Phade

Dear Friends,

              Welcome to Fortunes at nrptrends.

This is weekly wrapup of Indian equity market for the week ending on 11/Mar/2016.

On Friday the  BSE Sensex closed 94.65 points higher at 24717.99 and NSE Nifty closed above 7500 mark after a turbulent ride, up 24.05 points to 7510.20. The market breadth remained weak as about 1459 shares declined against 1104 advancing shares on the BSE. The market bounced back amid consolidation, majorly supported by Europe and crude oil rally. The broader markets ended flat. On the weekly basis, The NSE Nifty closed the previous week at 7485.35 to close at 7510.20 this week, about 24 points higher before hitting a high of 7547 and a low of 7424.

In my previous OPINION dt 08/mar/2016 we had discussed and identified that Banking, Auto, Fmcg, Housing finance, Agro, Infra, Steel & cement sectors shall be the drivers of the forthcoming bull run subject to fulfillment of certain prerequisites. We had also identified those factors influencing the Indian Equity Markets which have the potential to turn the equity markets into either a bear market or a bull market.  ( Are Indian Markets headed towards a new Bull Run ).

In the preceding Technical Analysis, we are going to have a peep at how the above mentioned sectors performed and what would be in store for the coming week.

TECHNICAL ANALYSIS :

NSE NIFTY 50 :-

NSE NIFTY 50 INTRADAY

NSE NIFTY 50 EOD

As per the NSE NIFTY 50 INTRADAY CHART, NSE Nifty 50 closed well above all the important trendlines of MAE 7, MAE 35, MAE 100 & MAE 200 indicating good strength in the market. As per the NSE NIFTY 50 EOD CHART, NSE Nifty 50 closed above MAE 7 (7440.36) & MAE 35 (7351.62)  but below MAE 100 ( 7587) and MAE 200 (7795). It seems the market would face slight resistance at 7587 level, crossing which we can see NSE NIFTY 50 moving up to 7800 levels. I would maintain a buy on NSE NIFTY 50 with stoploss at 7424-40 levels.

NSE BANK NIFTY :-

NSE BANK NIFTY INTRADAY

NSE BANK NIFTY EOD

NSE Bank Nifty proved to be a dampener for the markets. It had been discussed in the previous OPINION dt. 08 Mar 2016 that NPA woes are bound to prove a hurdle for the Banking Sector to perform. Secondly, in the Gnyaan Sangam it was expected that the government announce concrete measures to bring all defaulters to books, which is yet to meterialise. The markets are expecting a rate cut by the RBI. Any move on these frontiers shall send Nse Bank Nifty spiraling forward, the absence of which have put pressures on further run pushing Nse Bank Nifty into negative territory.

As per the NSE BANK NIFTY INTRADAY CHART, NSE Bank Nifty the crucial trendlines of MAE 100 & MAE 200 (15181) , marginally below MAE 7 (15169) at 15168 indicating weakness in the banking sector. As per the NSE BANK NIFTY EOD CHART, NSE Bank Nifty closed above MAE 7 & MAE 35 but well below MAE 100 & MAE 200. It seems that NSE Bank Nifty would be in a trading zone between 15351 on the higher side and 14986 on the lower. I would maintain a sell on NSE Bank Nifty with a strict stoploss at 15181 crossing which we are likely to see NSE Bank Nifty pushing above 15350 levels.

NSE NIFTY FMCG :-

NSE NIFTY FMCG INTRADAY

NSE NIFTY FMCG EOD

As per the NSE NIFTY FMCG INTRADAY CHART, Nifty fmcg closed at 19354, strongly above all the crucial trendlines of MAE 7, 35, 100, 200 indicating good strength. As per the NSE NIFTY FMCG EOD CHART, Nifty fmcg closed above MAE 7 (19136) and MAE35 (18955). Going forward Nifty fmcg would face minor resistance of MAE 100 (19369) crossing which, it shall test the level of 19625. I would maintain a buy on NSE NIFTY FMCG with a stoploss at 19130.

NSE NIFTY AUTO :-

NSE NIFTY AUTO INTRADAY

NSE NIFTY AUTO EOD

As per the NSE NIFTY AUTO INTRADAY CHART, Nifty Auto closed at 7723, above all the trendlines of MAE 7, 35, 100, 200 displaying good strength. As per NSE NIFTY AUTO EOD CHART, Nifty Auto closed above MAE7 (7605)  & MAE 35 (7500). Going forward it shall face minor resistance at  MAE100 (7742) crossing which, we shall find it crossing 7900 in no time. I maintain a buy with stoploss at 7600 levels.

NSE NIFTY METAL :-

NSE NIFTY METAL INTRADAY

NSE NIFTY METAL EOD

As per the NSE NIFTY METAL INTRADAY CHART, Nifty Metal closed at 1856, very much the level of all four crucial trendlines of MAE 7, 35, 100, & 200. As per the NSE NIFTY METAL EOD CHART, Nifty Metal closed MAE 7, 35, 100 Moving forward it shall face resistance at 1895, crossing which, it enters a extremely bullish zone. I maintain a strong buy with a stoploss at  1810 levels.

With the US Markets closing on strong note, we are likely to experience a strong upside in the Indian Equity Markets.

 This is all for now. Keep visiting for more updates. Happy Investing from Fortunes at nrptrends.

-- Dr. N. R. Phade