Weekly Outlook Nifty for week (July 04, 2016 – July 08, 2016)
Nifty Weekly Performance (June 20, 2016 – June 25, 2016)
Indian indices witnessed buying interest. For the week, the BSE Sensex was up 2.83%, while the NSE Nifty was up 2.96%. The index put up a staggering 240 points during the week despite the Brexit woes. The index has shrugged off the worries and headed higher, rallying consistently all five days of the week.
Not right time to invest for long-term investors
Nifty is now just above the range resistance of 8,300. Nifty is forming higher tops and lower bottoms since last 3 months. Despite Nifty is forming higher tops the RSI has failed to keep with it on both daily and 75 min charts. As now bulls have upper hand now , but now we can not under-estimate the power of bears either.
Right now, the Nifty is trading at a P/E of 22.5. That is historically a level of low returns or negative returns. The returns for an investor who enters when the P/E is below 16.5 are high. (For more Nifty PE check this link)
There is also no clear trend of strong EPS growth also. The long-term investor should probably be wary about increasing commitments at this point.
Nifty Prediction for Week (July 04, 2016 – July 08, 2016)
Minor support for the index lies in the zone of 8220 to 8250. Support for the index lies in the zone of 8000 from where the index has broken out from the triple top formation. If the index manages to close below these levels then the index can drift to the levels of 7770 to 7800 where 200 Daily SMA is lying.
Resistance for the index lies in the zone of 8340 to 8360 where the index has created the gap on gap down opening in the month of Aug – 2015. If the index manages to close above these levels then the index can move to the levels of 8600 to 8650 levels.
Broad range for the week is seen from 8100 on downside to 8500 on upside.
Bank Nifty Prediction for Week (June 20, 2016 – June 25, 2016)
Minor support for the index lies in the zone of 17500 to 17600. Support for the index lies in the zone of 17000 from where the index has broken out of the double top formation. If the index manages to close below these levels then the index can drift to the levels of 16500 where 200 Daily SMA is lying.
Resistance for the index lies in the zone of 18100 to 18200 where the index has created gap on gap down opening in the month of Aug – 2015. If the index manages to close above these levels then the index can move to the levels of 19000.
Range for the week is seen from 17300 to 17400 on downside to 18300 to 18400 on upside.
COMMODITIES :
Gold traded on a mixed note during the week. It opened its session on a positive note on Monday as market participants increased their exposure to safe-haven assets amid the Brexit volatility. However, the rally didn't last long as investors booked profits midweek. Also, a weak trend in precious metals overseas weighed on gold. During the end of the week, gold witnessed buying interest on the back of a weaker dollar. And on Friday, the yellow metal was headed for its fifth straight weekly gain and ended its session in the green.
Stocks to watch in near term NILKAMAL, SUPREMEIND, ASTRALPOLY and JUBLFOOD are likely to perform better in near term.
Indian indices witnessed buying interest. For the week, the BSE Sensex was up 2.83%, while the NSE Nifty was up 2.96%. The index put up a staggering 240 points during the week despite the Brexit woes. The index has shrugged off the worries and headed higher, rallying consistently all five days of the week.
Not right time to invest for long-term investors
Nifty is now just above the range resistance of 8,300. Nifty is forming higher tops and lower bottoms since last 3 months. Despite Nifty is forming higher tops the RSI has failed to keep with it on both daily and 75 min charts. As now bulls have upper hand now , but now we can not under-estimate the power of bears either.
Right now, the Nifty is trading at a P/E of 22.5. That is historically a level of low returns or negative returns. The returns for an investor who enters when the P/E is below 16.5 are high. (For more Nifty PE check this link)
There is also no clear trend of strong EPS growth also. The long-term investor should probably be wary about increasing commitments at this point.
Nifty Prediction for Week (July 04, 2016 – July 08, 2016)
Minor support for the index lies in the zone of 8220 to 8250. Support for the index lies in the zone of 8000 from where the index has broken out from the triple top formation. If the index manages to close below these levels then the index can drift to the levels of 7770 to 7800 where 200 Daily SMA is lying.
Resistance for the index lies in the zone of 8340 to 8360 where the index has created the gap on gap down opening in the month of Aug – 2015. If the index manages to close above these levels then the index can move to the levels of 8600 to 8650 levels.
Broad range for the week is seen from 8100 on downside to 8500 on upside.
Bank Nifty Prediction for Week (June 20, 2016 – June 25, 2016)
Minor support for the index lies in the zone of 17500 to 17600. Support for the index lies in the zone of 17000 from where the index has broken out of the double top formation. If the index manages to close below these levels then the index can drift to the levels of 16500 where 200 Daily SMA is lying.
Resistance for the index lies in the zone of 18100 to 18200 where the index has created gap on gap down opening in the month of Aug – 2015. If the index manages to close above these levels then the index can move to the levels of 19000.
Range for the week is seen from 17300 to 17400 on downside to 18300 to 18400 on upside.
COMMODITIES :
Gold traded on a mixed note during the week. It opened its session on a positive note on Monday as market participants increased their exposure to safe-haven assets amid the Brexit volatility. However, the rally didn't last long as investors booked profits midweek. Also, a weak trend in precious metals overseas weighed on gold. During the end of the week, gold witnessed buying interest on the back of a weaker dollar. And on Friday, the yellow metal was headed for its fifth straight weekly gain and ended its session in the green.
Stocks to watch in near term NILKAMAL, SUPREMEIND, ASTRALPOLY and JUBLFOOD are likely to perform better in near term.
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