Weekly Outlook Nifty for week (May 16, 2016 – May 20, 2016):
Nifty weekly performance (May 09, 2016 – May 13, 2016):
Indian stock markets registered gains during the week. The BSE Sensex was up by 1% and the NSE Nifty was up by 1.1%.
The index ended the week with gains of a percent at 7,813. But we doubt whether bulls would be rejoicing as the index traded with extremely high volatility and choppiness during the week. This left both the bulls as well as the bears perplexed as none of the camps could get a clear sense of the direction. The picture isn't clear as of now.
Nifty Prediction for Week (May 16, 2016 – May 20, 2016):
Minor support for the index lies in the zone of 7700 to 7750. Support for the index lies in the zone of 7500 to 7550 from where the index has broken down after making the double bottom pattern and 100 Daily SMA is lying. If the index manages to close below these levels then the index can drift to the levels of 7250 to 7300 where the index has opened gap up on 02/03/2016.
The index has closed around the resistance zone of 7820 where 200 Daily SMA is lying. Resistance for the index lies in the zone of 7950 to 8000 where 500 Daily SMA is lying. If the index manages to close above these levels then the index can move to the levels of 8200.
Broad range for the week is seen from 7500 on downside to 8000 on upside.
Bank Nifty Prediction for Week (May 16, 2016 – May 20, 2016):
Minor support for the index lies in the zone of 16200. Support for the index lies in the zone of 15800 to 16000 where 100 Daily SMA are lying. If the index manages to close below these levels then the index can drift to the levels of 15400 to 15500 from where the index has bounced in the month of April – 2016.
Strong resistance zone for the index lies in the range of 16800 to 17000 where 200 & 500 Daily SMA and trend-line joining earlier highs is lying. If the index manages to close above these levels then the index can move to the levels of 17100 from where the index sold off in the month of Jan – 2016.
Range for the week is seen from 15700 to 15900 on downside to 16800 to 17000 on upside.
Weekly News and Highlights:
1) China trade data released during the week showed that both exports and imports fell more than expected last month. Exports fell 1.8% YoY while imports sank 10.9% YoY during April. This was recorded as the 18thconsecutive monthly decline. This suggested that domestic demand in China remains weak despite a rise in infrastructure spending.
2) Growth in the EU's biggest eastern economies slowed more than expected last quarter. Poland and Hungary contracted from January to March compared with the previous three months. Hungary posted its first quarterly contraction in four years, pushing annual growth to 0.9%. This was the slowest pace since 2013. Further, Poland's economy expanded 3%, lagging estimates of 3.5%. The only relief came from Romania, which reported faster annual growth during the quarter. Its GDP expanded 4.3% YoY. This was as against economists' expectations of 3.8%. Everyone is now looking ahead to the Brexit referendum that David Cameron will call on June 23rd.
3) The US Energy Information Administration (EIA) stated that demand for oil worldwide is set to grow by 2,70,000 barrels per day (bpd) in 2016. The EIA's upward revisions are on the back of demand from China and India. Further, US crude inventories fell 3.4 million barrels to 540 million barrels last week, compared with analysts' expectations of an increase of 7,14,000 barrels. The crude oil market has for months been depressed by a global supply glut. Prices plummeted below US$30 per barrel early this year after hitting US$100 in mid-2014.
COMMODITIES :
Gold traded on a mixed note during the week. On Monday, it opened its session on a negative note. This was seen on the back of a firm dollar overseas that curbed the demand for yellow metal. Prices fell further on Tuesday as gold steadied near a one-and-a-half-week low. These losses were however reversed during midweek. Gains were witnessed on the back of a weak dollar and a firm trend in precious metals overseas. Prices again retreated during the end of the week. Market participants trimmed their positions after tracking a weak trend in global markets that was led by a sell-off in equities. On Friday, gold was set to post its biggest weekly decline since March as a firmer dollar cut the appeal for precious metals overseas.
Indian stock markets registered gains during the week. The BSE Sensex was up by 1% and the NSE Nifty was up by 1.1%.
The index ended the week with gains of a percent at 7,813. But we doubt whether bulls would be rejoicing as the index traded with extremely high volatility and choppiness during the week. This left both the bulls as well as the bears perplexed as none of the camps could get a clear sense of the direction. The picture isn't clear as of now.
Nifty Prediction for Week (May 16, 2016 – May 20, 2016):
Minor support for the index lies in the zone of 7700 to 7750. Support for the index lies in the zone of 7500 to 7550 from where the index has broken down after making the double bottom pattern and 100 Daily SMA is lying. If the index manages to close below these levels then the index can drift to the levels of 7250 to 7300 where the index has opened gap up on 02/03/2016.
The index has closed around the resistance zone of 7820 where 200 Daily SMA is lying. Resistance for the index lies in the zone of 7950 to 8000 where 500 Daily SMA is lying. If the index manages to close above these levels then the index can move to the levels of 8200.
Broad range for the week is seen from 7500 on downside to 8000 on upside.
Bank Nifty Prediction for Week (May 16, 2016 – May 20, 2016):
Minor support for the index lies in the zone of 16200. Support for the index lies in the zone of 15800 to 16000 where 100 Daily SMA are lying. If the index manages to close below these levels then the index can drift to the levels of 15400 to 15500 from where the index has bounced in the month of April – 2016.
Strong resistance zone for the index lies in the range of 16800 to 17000 where 200 & 500 Daily SMA and trend-line joining earlier highs is lying. If the index manages to close above these levels then the index can move to the levels of 17100 from where the index sold off in the month of Jan – 2016.
Range for the week is seen from 15700 to 15900 on downside to 16800 to 17000 on upside.
Weekly News and Highlights:
1) China trade data released during the week showed that both exports and imports fell more than expected last month. Exports fell 1.8% YoY while imports sank 10.9% YoY during April. This was recorded as the 18thconsecutive monthly decline. This suggested that domestic demand in China remains weak despite a rise in infrastructure spending.
2) Growth in the EU's biggest eastern economies slowed more than expected last quarter. Poland and Hungary contracted from January to March compared with the previous three months. Hungary posted its first quarterly contraction in four years, pushing annual growth to 0.9%. This was the slowest pace since 2013. Further, Poland's economy expanded 3%, lagging estimates of 3.5%. The only relief came from Romania, which reported faster annual growth during the quarter. Its GDP expanded 4.3% YoY. This was as against economists' expectations of 3.8%. Everyone is now looking ahead to the Brexit referendum that David Cameron will call on June 23rd.
3) The US Energy Information Administration (EIA) stated that demand for oil worldwide is set to grow by 2,70,000 barrels per day (bpd) in 2016. The EIA's upward revisions are on the back of demand from China and India. Further, US crude inventories fell 3.4 million barrels to 540 million barrels last week, compared with analysts' expectations of an increase of 7,14,000 barrels. The crude oil market has for months been depressed by a global supply glut. Prices plummeted below US$30 per barrel early this year after hitting US$100 in mid-2014.
COMMODITIES :
Gold traded on a mixed note during the week. On Monday, it opened its session on a negative note. This was seen on the back of a firm dollar overseas that curbed the demand for yellow metal. Prices fell further on Tuesday as gold steadied near a one-and-a-half-week low. These losses were however reversed during midweek. Gains were witnessed on the back of a weak dollar and a firm trend in precious metals overseas. Prices again retreated during the end of the week. Market participants trimmed their positions after tracking a weak trend in global markets that was led by a sell-off in equities. On Friday, gold was set to post its biggest weekly decline since March as a firmer dollar cut the appeal for precious metals overseas.
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