Weekly Outlook (February 15, 2016 – February 19, 2016)
Nifty weekly performance (February 08, 2016 – February 12, 2016):
Indian Indices recorded their biggest weekly decline since July 2009. The BSE Sensex lost around 6.6% during the week.NSE Nifty tanked around 6.8% during the entire week. The selloff was on the back of global concerns, the banking sector-led global equity selloff, and disappointing quarterly corporate earnings.
Horrible... One word is enough to describe last week's market action. The index witnessed largest ever drop of 7% in a week since 2009.Bulls saw the index with dropped jaws as one support level after the other was breached.
The appearance of hammer candle on daily charts with heavy volumes indicates that a panic bottom could be in place or at least developing around these levels.
Early action in the next week will help us confirm this view.
Nifty Prediction for Week (February 15, 2016 – February 19, 2016) :
Support for the index lies in the zone of 6700 where 1000 Daily SMA and 200 Weekly SMA are positioned. If the index manages to close below this levels then the index can drift to the levels of 6350 from where the index has broken out.
Resistance for the index lies in the zone of 7240 where the index has formed a previous bottom. If the index manages to close above this levels then the index can move to the levels of 7500 from where the index has broken down after making the double bottom.
Broad range for the week is seen from 6700 on downside to 7200 on upside.
Weekly News and Highlights:
1) Federal Reserve Chair Janet Yellen on Thursday said the central bank will follow a path of gradual policy tightening. She also stated that the US central bank is studying the feasibility of pushing short-term interest rates into negative territory should it need to give the economy an added boost.
Yellen also triggered concerns that tighter credit markets, volatile financial markets, and uncertainty over Chinese economic growth had raised risks to the US economy. On wage growth, Yellen noted that average hourly earnings, which jumped 2.5% YoY last month, is evidence that wage growth remains tentative.
Data released late during the week suggested that the labour market in the US remained on a solid footing. It was reported that the number of Americans filing for unemployment benefits fell more than expected last week. The Labor Department stated that initial claims for state unemployment benefits declined 16,000 to a seasonally adjusted 2,69,000 for the week ended February 6.
Economists had forecast claims falling to only 2,81,000. The data pointed more confidence in the labour market in the US despite slowing economic growth and a stock market turmoil.
Recommendations Techno Funda Picks :
No Pending Open Trades
Indian Indices recorded their biggest weekly decline since July 2009. The BSE Sensex lost around 6.6% during the week.NSE Nifty tanked around 6.8% during the entire week. The selloff was on the back of global concerns, the banking sector-led global equity selloff, and disappointing quarterly corporate earnings.
Horrible... One word is enough to describe last week's market action. The index witnessed largest ever drop of 7% in a week since 2009.Bulls saw the index with dropped jaws as one support level after the other was breached.
The appearance of hammer candle on daily charts with heavy volumes indicates that a panic bottom could be in place or at least developing around these levels.
Early action in the next week will help us confirm this view.
Nifty Prediction for Week (February 15, 2016 – February 19, 2016) :
Support for the index lies in the zone of 6700 where 1000 Daily SMA and 200 Weekly SMA are positioned. If the index manages to close below this levels then the index can drift to the levels of 6350 from where the index has broken out.
Resistance for the index lies in the zone of 7240 where the index has formed a previous bottom. If the index manages to close above this levels then the index can move to the levels of 7500 from where the index has broken down after making the double bottom.
Broad range for the week is seen from 6700 on downside to 7200 on upside.
Weekly News and Highlights:
1) Federal Reserve Chair Janet Yellen on Thursday said the central bank will follow a path of gradual policy tightening. She also stated that the US central bank is studying the feasibility of pushing short-term interest rates into negative territory should it need to give the economy an added boost.
Yellen also triggered concerns that tighter credit markets, volatile financial markets, and uncertainty over Chinese economic growth had raised risks to the US economy. On wage growth, Yellen noted that average hourly earnings, which jumped 2.5% YoY last month, is evidence that wage growth remains tentative.
Data released late during the week suggested that the labour market in the US remained on a solid footing. It was reported that the number of Americans filing for unemployment benefits fell more than expected last week. The Labor Department stated that initial claims for state unemployment benefits declined 16,000 to a seasonally adjusted 2,69,000 for the week ended February 6.
Economists had forecast claims falling to only 2,81,000. The data pointed more confidence in the labour market in the US despite slowing economic growth and a stock market turmoil.
Recommendations Techno Funda Picks :
No Pending Open Trades
| STOCK | Rec Date | Rec Price | CMP | SL | Return | Remarks | |
| MINDTREE |
|
1538.75 | 1488 | 1,488.00 | -3.4 | SL Hit | |
| YesBank | 01-Feb-16 | 746.8 | 749 | 714.00 | 0.3 | Exit | |
| RAJESHEXPO | 25-Jan-16 | 714.55 | 725 | 694.00 | 1.4 | Exit | |
| WIPRO | 01-Feb-16 | 562.8 | 558 | 547.00 | -0.8 | Exit |
Rec Price = Re-commanded Price , Rec Date - Re-commanded Date, CMP = Current Market Price , SL = Stop Loss
Disclaimer : Our content is intended to be used and must be used for informational purposes only.
The strategy may not be suitable for you.You may take independent decision at your own risk.
The strategy may not be suitable for you.You may take independent decision at your own risk.
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