"WEEKLY MARKET OUTLOOK & TRADING IDEA FOR THE WEEK 27.08.2012 TO 02.09.2012"

The 30-share index, Sensex gained 92.13 points, or 0.52% to 17,733.21 for the week ended Aug 24, 2012. On the other hand, the broad based NSE Nifty gained 20.40 points, or 0.38%, to 5,386.70 during the week.
VIEWS FROM DIFFERENT BROKING HOUSES:
HDFC SECURITIES: The market may remain volatile as traders roll over positions in the futures & options (F&O). With the Nifty rifting lower, crucial supports to watch early next week are the recent lows of 5341. The uptrend could resume if these support levels hold; else we could see a further correction in the markets”.
KOTAK SECURITIES (Dipen Shah):Valuations are now at about 14.5x FY13E earnings, which is almost at the median level of the long term band. Risk-averse participants may do well to be slightly under-weight on the markets at least in the near term. As of now, we continue to maintain our bias towards companies with able managements, strong balance sheets and reasonable valuations”.
CANARA BANK SECURITIES (CanMoney):Next week, global cues will be the major driver for our market. Major announcement from the ongoing monsoon session of Parliament may be significant. Owing to F&O expiry of August series, Volatility may be on the higher side. Major Support & Resistance for Nifty are 5340/5315/5280 and 5415/5450/5490”.
FAIRWEALTH SECURITIES: “Despite a couple of days close above the 5410 level, the market hasn’t made any headway and has slipped below the 5400 level. Volatility is expected as it is an expiry week while the outlook is mildly negative. Support comes in at the 5330, 5224 while resistance comes in at the 5410, 5501 levels”.            
BONANZA ONLINE: Nifty made shooting star candle stick pattern on weekly charts, which shows that bears are trying to enter from higher levels. Buying interest may be continuing above 5400 levels. If Nifty do not maintain above 5400 levels then profit booking may be seen. For trading during the coming sessions, trend deciding level is 5400. If Nifty shows strength above 5400 levels then we may see rally till 5450/5500/5560. If Nifty doesn’t sustain above 5400 levels then selling pressure till 5350/5300/5250 may also be seen.
Duration
Action
Entry Zone (NF)
For Target of
Stop Loss
For Tuesday
Buy
5390-5410
5455
5370
For the Week
Buy
5380-5420
5480-5520
5350
BONANZA PORTFOLIO (Rakesh Goel):Nifty has made a shooting star candlestick pattern. This means that if in the coming week, 5365-5350 level shall be deciding levels on the downside and further selling pressure may be witnessed below these levels. Weekly support was well received at 5370-5365 and resistance was seen at 5425-5450. On the upside, rally will be seen only above breakout of 5450 level, until then the indices may consolidate or witness profit-booking. Buying on dips is recommended”.
VENTURA SECURITIES LIMITED:On Monday (5385-5376) would be buy levels. Strong Markets won’t break 5382. Above 5385 Nifty could test 5399 (Friday’s high), further it could open for 5448-5510. Nifty has support at 5371 (Friday’s low). Below it could open for 5350-5289-5260”.
GEPL CAPITAL: Though we have seen some profit taking from under an important resistance of 5,460, the level of 5,340 continues to remain as an important support for Nifty. In the immediate term the level of 5,460 would continue to serve as a resistance for Nifty whereas 5,340 remain as a critical support. Any breach of this support may induce further weakness till 5,220. In an alternate scenario if it manages to surpass the level of 5,460 then we may see a swift upside till 5,625 and beyond. Thus it is vital that Nifty sustains above 5,340 in the immediate term. We recommend a stop loss of 5,340 for any existing long position in Nifty”.
KARVY STOCK BROKING: “Last week, the Nifty witnessed an extremely volatile sessions within the tight range of 5370-5450 levels and saw stock specific activity. Long positions can be assumed in Pharma, IT, Auto, FMCG, Capital Goods, and Energy sectors if  markets hold 5280-5250 levels. Short positions can be accumulated in BFSI, Metals, and Utilities if nifty fails to sustain above 5430-5450 levels or below 5250 levels. Overall, we expect Nifty to trade in the broad range of 5250-5450 levels for next week”.
ICICI SECURITIES: “The Nifty may trade with a positive bias till it holds above 5340. Immediate resistance for the Nifty lies at 5460. A move above this level may trigger fresh momentum towards 5540. The Bank Nifty has major resistance near 10600 due to significant open interest at the 10500 Call strike. On downsides, immediate support can be seen at 10200 levels”.
SMC TRADEONLINE (WISE MONEY): “The momentum in market finally halted at 5450 levels. The global clues, which were supporting market faded against domestic factors. The closing below 5400 level indicates that market may go under some correction or consolidation phase. As coming near to expiry, position rollover percentage will work as a leading indicator for future trend”.
GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): The crucial support for the Nifty is at 5253 and the resistance is at 5449-5500”.
ANGEL BROKING (Technical): “Looking at the weekly 'Line chart', we can infer that indices have now confirmed a 'Higher Top Higher Bottom' formation along with the breakout from "Downward Sloping Trend Line" resistance around 17650/5370 formed by joining the highs 21109/6339 (November 5, 2010)-18524/5630 (February 24, 2012). However, the weekly chart candlestick pattern resembles a SHOOTING STAR. Also, at this juncture, we are observing a cluster of narrow range body formations, which signify uncertainty among market participants. In addition, the momentum oscillators on daily chart are negatively poised. Thus, we are of the opinion that if indices sustain below this week's low of 17705/5368, then we may witness a short term loss of current positive momentum and indices then may slip towards 17450-17285/5290-5240 levels. Conversely, a sustainable move beyond 17973/5449 level would augment the current positive momentum and then indices may rally towards 18050-18524/5500-5630 levels”.
MICROSEC SECURITIES: “For the coming week, first support of Nifty is at 5340 and the resistance is 5450. If Nifty breaks 5350, it may further go down to 5290 and then 5250. However, if Nifty is able to sustain above 5450, the level of 5510-5570 would become the next target”.
INDIRATRADE SECURITIES: “For the next week, Nifty likely to trade in the range between 5450-5520 in the upper side and 5300-5220 in the lower side”.
EMKAY GLOBAL:The level of 5,348 is the key pivotal support for the index. Back in April 2012 and July 2012, 5,348 was a resistance area that may now pose support for Nifty. While the direction appears to have turned higher in the index, a drop back below 5,348 marks will negate some of the bullishness. Move below the support 5,294 mark, means the trend that started from the low of 5,032 mark got disrupted, and in that event the index is likely to continue to move sideways or head toward the support of 5,250”.

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