The first full budget from the Modi goverment had high expectation from the market. The FM Mr. Arun Jaitley had to balance a tight rope between the expectation & limitations. The Fiscal Deficit target from last budget was met and an even better target of 3.9 was set for 2015-2016. The focus is kept on achieving a double digit growth which currently hovers around 8-8.5%. The fall in inflation from almost double digit to a mere 5% has been key factor, with a easing Monetary policy expectation. The Increased service tax to 14% is definitely going to increase the cost of living. However the corporates can look forward to lowering of tax to 25% in next four years. A definite date was given to GST roll out, while the GAAR was deferred by 2 years.
Nifty opened the week at 8856, made a high of 8941, low of 8669 and closed the week at 8901. Thus the Nifty closed the week with a gain of 68 points. On the daily as well as weekly charts it has made a Spinning Top formation which is a neutral formation. On the daily charts it was with small black body whereas on the weekly charts it was with small white body. This formation can turn bearish when it gets a bearish candlestick pattern as confirmation. Thus daily as well as weekly candlestick patterns are neutral formations and a lot will depend on the direction the market adopts Monday onwards.
On the monthly chart, Nifty has formed a Last Engulfing Top which required a confirmation in the form of a black body candle in February month but it was not to be as the February month instead formed a small white body candle. Thus the pattern has not been confirmed.
Nifty tested the short term average of 20dma (8750) but closed the week above it. Besides it continues to remain above the medium term average of 50dma (8560) and even the long term average of 200dma (8028). Thus the trend in the short term, medium term and long term time frame continues to remain bullish.
RSI @59 suggests that bullish momentum is intact. MFI @73 continues to move higher, indicating positive money flow. Stochastic Oscillator %K @75 continues to remain above %D and hence continues in Buy mode. ADX has gone lower to 20, suggesting uptrend has lost lot of its strength. Directional Indicators continue in Buy mode as +DI remains above –DI. OBV continues in Buy mode making higher top higher bottom formation. Thus majority of Oscillators are suggesting a bullish bias in the near term.
Option data suggest highest Call Open Interest buildup still remains at the strike of 9000, whereas the highest Put build-up has shifted to the strike of 8500. Thus Option data suggests a trading range with support coming in at 8500 and resistance around 9000. Friday saw strong build-up for 9200 Call which indicates that the level of 9200 might act as strong resistance.
Stock of the Week:
DISH TV
The Stock has been trading in a range of 75-85 for the past month. It has given the range break out on the daily charts with above average volume. The RSI above the 60% indicates bullishness. The Stock can be bought with the stop loss of 81 for the target of 88.85-90.85-92.25-97.1-100.8
Nifty opened the week at 8856, made a high of 8941, low of 8669 and closed the week at 8901. Thus the Nifty closed the week with a gain of 68 points. On the daily as well as weekly charts it has made a Spinning Top formation which is a neutral formation. On the daily charts it was with small black body whereas on the weekly charts it was with small white body. This formation can turn bearish when it gets a bearish candlestick pattern as confirmation. Thus daily as well as weekly candlestick patterns are neutral formations and a lot will depend on the direction the market adopts Monday onwards.
On the monthly chart, Nifty has formed a Last Engulfing Top which required a confirmation in the form of a black body candle in February month but it was not to be as the February month instead formed a small white body candle. Thus the pattern has not been confirmed.
Nifty tested the short term average of 20dma (8750) but closed the week above it. Besides it continues to remain above the medium term average of 50dma (8560) and even the long term average of 200dma (8028). Thus the trend in the short term, medium term and long term time frame continues to remain bullish.
RSI @59 suggests that bullish momentum is intact. MFI @73 continues to move higher, indicating positive money flow. Stochastic Oscillator %K @75 continues to remain above %D and hence continues in Buy mode. ADX has gone lower to 20, suggesting uptrend has lost lot of its strength. Directional Indicators continue in Buy mode as +DI remains above –DI. OBV continues in Buy mode making higher top higher bottom formation. Thus majority of Oscillators are suggesting a bullish bias in the near term.
Option data suggest highest Call Open Interest buildup still remains at the strike of 9000, whereas the highest Put build-up has shifted to the strike of 8500. Thus Option data suggests a trading range with support coming in at 8500 and resistance around 9000. Friday saw strong build-up for 9200 Call which indicates that the level of 9200 might act as strong resistance.
Stock of the Week:
DISH TV
The Stock has been trading in a range of 75-85 for the past month. It has given the range break out on the daily charts with above average volume. The RSI above the 60% indicates bullishness. The Stock can be bought with the stop loss of 81 for the target of 88.85-90.85-92.25-97.1-100.8
