"WEEKLY MARKET OUTLOOK & TRADING IDEA FOR THE WEEK 14.05.2012 TO 20.05.2012"

The 30-share index, Sensex dropped 538.10 points, or 3.20% to 16,292.98 for the week ended May. 11, 2012. On the other hand, the broad based NSE Nifty lost 157.95 points, or 3.11%, to 4,928.9 during the week.
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: With the Nifty drifting down further, the underlying trend remains firmly down. Traders will need to watch if the Nifty can hold above the 4900 supports in the coming week. Else, the Nifty could slide down further towards the 4800-4700 levels”.
KOTAK SECURITIES (Dipen Shah):Future RBI action and foreign flows will likely be dictated by Government’s reform initiatives and the outlook on the monsoons. We believe that, markets will start moving up sustainably, only once there are indications of reform initiatives being taken up by the Government”.
CANARA BANK SECURITIES (CanMoney):Next week, Political tensions in the Euro area look set to heat up again with the publication of economic growth data for the first quarter in Europe. Overall, short positions were made in Future and Options. Option data is indicating resistance in 5200-5300 zone and support in 4900-4700 zones.”.
FAIRWEALTH SECURITIES: “In the next session, Nifty is expected to trade in the range 4880-4990. If Nifty moved above 4990 it may test 5035-5045 level, while if sustained below 4880 it may test 4835. Bank-Nifty has a strong resistance around 9561 while strong support comes at 9250 and 9090”.
BONANZA ONLINE: Nifty showed selling pressure for 3rd consecutive week. Bears are having control at the moment and weakness may be continuing below 4900 zone. If Nifty holds 4900 levels then recovery may be seen. For trading during the coming sessions, trend deciding level is 4900. If Nifty shows strength above 4900 levels then we may see rally till 4975/5050/5125. If Nifty doesn’t sustain above 4900 levels then selling pressure till 4840/4790/4750/4700 may also be seen”.
Duration
Action
Entry Zone (NF)
For Target of
Stop Loss
For Monday
Buy
4900-4920
4960-4980
4880
For the Week
Buy
4870-4920
5005-5050-5080
4840
BONANZA PORTFOLIO (Rakesh Goel):Next big trigger will be the inflation data for the month of April which is due next week. Only a big positive surprise in the inflation data will improve the sentiments, otherwise the short term trend will remain negative only”.
VENTURA SECURITIES LIMITED:On Monday (4935-4945)-(4956-4965) would be sell levels. Weak Markets won’t cross 4949. Above 4965 Nifty could test 4976 (Friday’s high), further it could open for 5009-5073-5125-5248-5268. Nifty has support at 4906 (Friday’s low). Below it could open for 4768-4531”.
GEPL CAPITAL: The trend continues to appear weak till the time Nifty trades below the level of 5040. On the down side it has a major support placed at 4880 for next few sessions. The level of 4880 is a make or break and a trend reversal level for Nifty. If the trend has to turn bullish Nifty should not break the level of 4880 else it may be susceptible to further downside risk. One must remain cautious till the time Nifty trades below the level of 5040”.
ADITYA BIRLA MONEY (MONEY WEEKLY): “Next week, April inflation data will be out. If inflation subsides, markets could anticipate interest rate cuts in the wake of such poor IIP numbers. Many stocks have corrected heavily and value has emerged, creating opportunity for long term investors. With the Finance Bill having been passed, inaction on the part of the government to raise fuel prices would invite further selling at any negative news flow. One should use any volatility to accumulate quality and low beta stocks”.
ICICI SECURITIES:The Nifty has breached its important support of 4950 in Friday’s session. Inability to move above these levels may drag the index towards 4800. On the higher side, 5150 will continue to act as a stiff resistance in the near term. Bank Nifty has accumulated fresh short positions in the last week. Among stocks, most of the PSU banking stocks like SBI and PNB garnered fresh short build up. Bank Nifty has major support around 9100. Any short covering can be expected only if the Bank Nifty is able to sustain above 9750”.
SMC TRADEONLINE (WISE MONEY):In the week gone by Nifty cost-of-carry ended negative indicating short build-up. Nifty is expected to remain weak as it is trading below all its long term moving averages. The options concentration continues to be at the 4900-strike put option with an open interest of above 70 lakh shares. Among call options the 5200-strike holds the highest open interest of above 70 lakh shares followed by the 5100-strike call with above 50 lakh shares. The put-call ratio of open interest decreased and closed at 0.94 levels which indicating call writing and put buying. The Implied Volatility (IV) of call options closed higher at 21.56% while the average IV of put options ended at 22.20%. Nifty VIX has increased last week and is expected to remain volatile in the short-term. The index may find intermediate support around 4850 levels and resistance near 5050 levels”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): Technically the market is stretched but there is no sign of strength witnessed seen on the charts as yet. The next logical technical target on the downside is 4853 but a strong technical support exists at 4766. From a trading point of view I would trade the short side of the market unless I see strength. On daily basis, the market looks stretched and so a reaction is not ruled out but there is no sign of strength and so our logical target of 4853 still is valid. The crucial support for the Nifty is at 4915-4853 and the resistance is at 5075-5100”. 
ANGEL BROKING (Technical): We are now observing a series of 'Narrow Range' body formations on the daily chart. This indicates uncertainty among the market participants and signals probable exhaustion of a current negative momentum. Momentum oscillators on the daily chart are placed well inside the over sold territory.  However, we must also take into consideration that the oversold indication of momentum oscillators signals loss of momentum and does not necessarily indicate a reversal. Hence, only if indices sustain above Friday's high of 16447/4976, we may witness a bounce up to 16700-16840/5050-5090 levels.  A violation of Friday's low (16233/4906) would clearly increase the chances of a further fall and, as a result, indices may slide towards 16000-15860/4850-4800 levels. We are of the opinion that traders who intend to trade with a positive bias should enter the market only if indices sustain and close above the weekly high of 16945/5125”.
MICROSEC SECURITIES:For the coming week, first support of Nifty is at 4880 and the resistance is 5010. If Nifty breaks 4880, it may further go down to 4820 and then 4770. However, if Nifty is able to sustain above 5010, the level of 5090-5130 would become the next target”.
INDIRATRADE SECURITIES:For the next week, Nifty likely to trade in the range between 5100-5150 in the upper side and 4850-4700 in the lower side”.
SWASTIKA INVESTMART:The Market is expected to remain volatile on account of Monthly Inflation data of April will be due on Monday, 14 May 2012; besides Volatility in Exchange rates and Global political & Economic issues will be the major factor that will decide the further trend of markets. Apart from these, Q4FY12 and year ending March 2012 (FY 2012) Result of giants like L&T, Bajaj Auto, State Bank of India, Tata Steel, and Coal India may impact stocks specific movement”.
EMKAY GLOBAL:It’s the third day, when Nifty has closed in red. But the trading range of last two days was quite dull and narrow as if bears are taking a breather. It looks like Nifty is finding support at the 61.8% retracement of the rally from 4,531 to 5,630. At this point of time it is hard to say whether this is merely a temporary pause or a short term bottom. Now those entire masterminds will say that medium term trend of Nifty is down and will change only above 5,280. So either the next down leg will begin from here itself or it will start after a short term bounce. In either case the possibility of 4,766 (i.e. 78.6% retracement area) is bright. Possibility of short term bounce will open up only above the level of 5,040. In that case there is a fair possibility that Nifty will again see the level of 5,124, before the next down leg begins”.
FORTUNE INTERFINANCE LTD (FIFL): “The concerning part is the way it effortlessly broke below the important support level of 5,080 which is 50% retracement of 4,531-5,629, during last week without any effort of making pullback. Now it is trading precariously near the last support area of 4,897 (66.66% Gann Retracement level of 4,531-5,629), weekly close below 4,897 will result in opening of huge downside till 4,500 over medium term. The last hope is placed on 61.8% Gann Retracement Fan drawn from 2,252 which gave support to the Nifty last time around at 4,531. Even though chance are slim, if Nifty manages to pull itself above 5,132 on weekly closing basis then we can assume this downturn has finally got over and we may enter into some kind of consolidation mode. Weekly range for the Nifty is advocated in the range of 4,800-5,132”.
R K GLOBAL: “In the week ahead, we expect loads of volatility in our markets as domestic and international macro economic factors continue to put pressure on the market performance. Despite Finance Minister Pranab Mukherjee’s decision to defer the general anti-avoidance rules (GAAR) by one year, foreign inflows continued to be weak with INR depreciating to a considerable extent. These could further fuel the market’s downfall. Unless these issues are not addressed soon, equities as an asset class will continue to take a beating”.
MAGNUM RESEARCH: “On the Nifty 4830 mark will have a strong support closing below which Major trend will turn negative and selling pressure till 4700 levels could be witnessed. On upside, 5030 will act as immediate resistance, sustaining above which the next level would be 5100 level”.

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