Weekly Outlook (February 22, 2016 – February 26, 2016):

Nifty weekly performance (February 15, 2016 – February 19, 2016):

During the week, the Sensex and Nifty rallied 3% each. This was also recorded as the biggest weekly upside since October 2015. However, the week was strong as equity benchmarks saw the biggest weekly gains in 2016 on short covering and oil recovery. 

The hammer candle did have the expected impact as markets bounced back sharply during this week. However, this wasn't a one way bounce. Markets traded on an extremely choppy note throughout the week. Currently, the index is placed just above the resistance zone of 7,200. 

Nifty Prediction for Week  (February 22, 2016 – February 26, 2016):

Support for the index lies in the zone of 7000 where the index has formed a short term bottom. If the index manages to close below this levels then the index can drift to the levels of 6700 where 1000 Daily SMA and 200 Weekly SMA are positioned.

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..

If the index manages to hold 7200 level in the coming week, one can expect some upside - else choppy action will continue. 

Broad range for the week is seen from 7000 on downside to 7300 on upside.


Weekly News and Highlights:


   1) Japan's economy contracted in the final three months of 2015. Gross domestic product (GDP) shrank an annualised 1.4% in the final quarter of last year, following a revised 1.3% gain in the third quarter. The fall was attributed to slump in consumer spending. 
   
   2) China's exports fell 11.2% during January on a YoY basis. Imports declined 18.8% YoY. Many economists expected both figures to continue improving at the slow pace they had for most of last year. The data also indicated that China's exports to the US fell by 9.7% YoY - and those to the European Union (EU) by 11.9%. Further, exports to its two largest trading partners in Asia, Japan and South Korea, fell by 5.3% and 15.9%, respectively. 
   
   Moreover, on a separate note, it was reported that bad loans at Chinese commercial banks rose to the highest level since June 2006. All of these data depicted a dull start to the year for China and heightened concerns for an economic slowdown in the country. 

   Global equity markets ended their session on a mixed note after tracking the above developments. On Friday, Asian markets finished broadly lower with shares in Japan leading the region. The Nikkei 225 was down 1.4% while Hong Kong's Hang Seng was off 0.4% and China's Shanghai Composite was lower by 0.1%. European markets were seen trading in the green on Friday. The FTSE 100 was up 0.23% while the CAC 40 gained 0.11%. Meanwhile, the DAX was off 0.05%. Markets in the US stood in the red. 
 


Recommendations Techno Funda Picks :

Rec Price = Re-commanded Price , Rec Date - Re-commanded Date, CMP = Current Market Price , SL = Stop Loss

Comments : 1) Wipro - if it closes above 550 can move to 560/574

                   2) Watch list Stocks : Eclerx Services , KPIT Technologies , Tech Mahindra ,
                     Torrent Pharmaceuticals . (We will update you , If these stocks generates buy signal during week )
                   

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The strategy may not be suitable for you.You may take independent decision at your own risk.