Saturday, April 30, 2016

Weekly Review - 02nd May, 2016

Dear All,


The Bank of Japan on Thursday kept its monetary policy steady keeping the negative interest rate unchanged. Further, the central bank trimmed FY17 GDP growth forecast to 1.2% from 1.5% earlier for 2016-17 which led to a sell-off in global stocks

Meanwhile, the US Federal Reserve at its two-day policy meet which ended Wednesday kept interest rates unchanged but signalled confidence in the US economic outlook, paving the way for a possible rate hike at its next policy meet in June.

Reliance Industries ended down 5.4% on profit taking post its results announcement. The stock had appreciated nearly 10% in the last two months ahead of its fourth quarter earnings. Meanwhile, on account of the huge Rs 1.13 lakh crore capex for the ongoing refinery and petro-chemical expansions and the proposed launch of Jio telecom, its gross debt increased to Rs 1,81,079 crore in the March quarter compared with Rs 1,78,07 crore in the December quarter.

Global events along with the movement in crude oil prices and foreign fund flows will dictate the market trend in the week ahead.

Markit Economics will release the India Manufacturing PMI for April 2016 on May 2 and Nikkei India Services PMI will release the data on May 4.

Stock specific action will be seen post the March quarter earnings with Adani Ports, Eicher Motors and Hero MotoCorp set to announce their results next week.

Auto companies will be in focus as they will release their April sales numbers.

>>> Nifty Weekly Chart<<<

>>> click the chart to see on full screen <<<

Price unable to hold above 50% retrace or 7972 should be watched carefully. Two consecutive red candle tested 50 wma and closed below it, shows weakness. Caution advised.

>>> Nifty Daily Chart <<<

>>> click the chart to see on full screen <<<

Bulls must cross above 7970-90 and should hold RSI trend line for a healthy rally. Else Bear may re-enter again.

>>> Nifty Hourly Chart <<<

>>> click the chart to see on full screen <<<

Price may get support @ 7790,7740 & 7716. Break below these levels may confirm the down trend.

>>> Bank Nifty Hourly Chart <<<

>>> click the chart to see on full screen <<<

Same like Nifty 50 - Bank Nifty also moving on a ABCDE pattern. Price may find its resistance @ 16840 & 16920 above may see rally and Support @ 16550 & 16570 if breaks - may fall to continue. We have entered short on Nifty Bank and will decide as per next week movement.

>>> RELIANCE - As Posted on Last Weekly Review <<<

>>> click the chart to see on full screen <<<

Have wrote on last weekly review - a day after better than expected Q4 Results - mentioned clearly that Charts showing weakness and looking for a possible fall. See what happened.

>>> RELIANCE - Booked Rs.16000/- Profit <<<

>>> click the chart to see on full screen <<<

We made a panic Exit with Profit of Rs.16000/-. But price achieved our target 990 and made a low of 980.

>>> TataMotors - Hourly Chart <<<

>>> click the chart to see on full screen <<<

Holding with a Profit of Rs.7500/- Looking for more such correction.

>>> ASHOK LEYLAND - Daily Chart <<<

>>> click the chart to see on full screen <<<

Holding Short on Ashok Leyland also.

>>> KOTAKBANK - Hourly Chart <<<

>>> click the chart to see on full screen <<<

Shorted Kotak Bank also and expecting a good correction from here. Cheers!!!

>>> Performance for the month end of April, 2016 <<<

>>> click the chart to see on full screen <<<

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