Weekly Outlook (February 29, 2016 – March 04, 2016):

Nifty weekly performance (February 22, 2016 – February 26, 2016):

During the week, the Sensex plunged 2.3% and Nifty lost 2.5%. However, the markets closed their session on a positive note on Friday. There were several triggers that supported this rally.Some to be named are the rise in crude prices, the rebound in Chinese markets and a strong opening for European markets. Further, the Economic Survey which unveiled a path towards fiscal consolidation lifted market sentiments.

The index managed to break out above the resistance level of 7,200 but couldn't sustain above those levels for long. It dropped by 125 points on Tuesday and has entered back in to the trading range of 6,900 to 7,200. The Nifty could trade choppily until it decisively breaks out on either side of this trading range. Traders would probably wait and take cues from the Union Budget before taking any positions.


Nifty Prediction for Week  (February 29, 2016 – March 04, 2016):

Support for the index lies in the zone of 6950 to 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.

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

Weekly News and Highlights:

1) The Brexit - the question of whether the UK will leave the European Union - was the most touted affair during the week. The Brexit (British exit) campaign began in the United Kingdom when Prime Minister David Cameron received assistance for his call for the UK to remain in the European Union (EU). It was reported that nearly 200 business leaders employing over 1.2 million people and the UK's Trade Union Congress representing six million workers came out in support of the 'stay' campaign. 

However, the 'leave' campaign had a lot of support as well. The news made the pound the worst performing major currency during the week. And now everyone is looking to the referendum that David Cameron will call on June 23rd. 

2) It was reported that the US service sector contracted in early February. The fall was recorded as the first since October 2013. Data firm Markit reported that its flash US services PMI business activity index fell to 49.8 early this month from 53.2 in January. To note, a reading below 50 indicates a contraction in services sector activity. 

US single-family home sales also tumbled in January, particularly in the western states. The Commerce Department noted that single-family home sales dropped 9.2% last month to a seasonally adjusted annual rate of 494,000 units. 

On Friday, it was reported that US economic growth slowed in the fourth quarter. Gross domestic product (GDP) increased at a 1% annual rate. This was as against the previously reported 0.7%.

3) China's central bank hinted that Beijing is preparing to launch another round of stimulus. China's central bank governor Zhou Xiaochuan said that China has more room and tools in its monetary policy to tackle downward pressure in the economy, and its fiscal policy would be more proactive. These comments helped stock markets in the Asian region with Chinese shares witnessing maximum buying interest. 

Techno Funda Stocks Recommendations:

No Open Trades , will publish during the week if any .

Closed Trades

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