Indian Stock Market

Date - 03rd September 2010

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Nifty - 5486.15 (+14.30)
Sensex - 18238.31 (+32.44)

Astro-Turning Dates (+/- 1 Day)* -
(This is preliminary analysis of the market which will be updated everyday during Market Hours. Effect can start plus/minus few hours)

August 30th   (........ ....... ......... ........ ......... ........ For Paid Subscribers Only- Signal Strength Medium**)
August 31st  (........ ....... ......... ........ ......... ........ For Paid Subscribers Only - Signal Strength Medium**)
Sept 01st  (........ ....... ......... ........ ......... ........ For Paid Subscribers Only  - Signal Strength Strong***)
Sept 03rd  (........ ....... ......... ........ ......... ........ For Paid Subscribers Only  - Signal Strength Strong***)
NOTE - This is preliminary analysis of the market which will be updated everyday during Market Hours) 
 

Technical Outlook 03rd September 2010)

As mentioned yesterday, Nifty is nearing the important resistance of 5490 after it started recovery from 5348 on 31st August. It had declined by more than 200 points prior to this recovery. Now Nifty faces another major hurdle at 5550-5560 which will attract heavy profit booking & Nifty may decline to 5275-5300 in coming weeks.  Nifty opened with a positive gap of 25-30 points on positive cues from global markets. Nifty remained range bound throughout the day in tight range of 15-20 points except for few spikes in which Nifty touched an intra day high of 5513 & low of 5471 before closing at 5486, about 14 points above the previous close.

As far as, extreme short term charts are concerned, Nifty is currently overbought with no. of negative divergences in momentum oscillators which can bring Nifty down to 5450-5440 in near future. On the other hand, decisive close above 5555 can give further up move of 100-125 points in coming sessions. However it may be noted that Nifty has very strong resistance around 5555 which is the top line of the bearish "Rising Channel" pattern in which Nifty has been moving for last 9-10 months. The short term bearish target of Nifty i.e. 5275-5300 is well maintained after Nifty gave bearish breakout from a " Rising Wedge" pattern. This target is likely to be achieved soon.

As far as bar reversal in Daily charts are concerned, stocks like Century Plyboard, Tube Investment, Rajesh Exports, Alchemist, Jagran Prakashan, Eveready have given "Upward Bar Reversal" while SBI, Unitech, ONGC, Infosys, TCS, Bharti Airtel, Sesa Goa, REL Infra, BHEL, Hindalco etc. have given "Downward Bar Reversal". Stocks like Birla Erricson, Dwarikesh Sugar, Vindhya Tele, SKM Engg Products, Hercules Hoists, Elnet Tech, Aries Agro, Atlas Cycles, Venkey's (I), Apollo Tyres have shown  spurt during the day with unusually high volumes.

Sector wise, most of the stocks like Suzlon, Apollo Tyres, Jayswal Neco, Guj. NRE Coke, Indowind, Exide Inds., Tanla, JK Tyres, Aptech Training etc. were among the top gainers of the day to close in positive territory whereas stocks like Cranes Software, Resurgere, Harrison Malyalam, Hero Honda, Hind. Copper, Adani Power, Hindustan Zinc, STC India etc. attracted profit booking at higher levels & closed in red territory. As far as, A/D data is concerned it was slightly in favor of bulls in the ratio of 8:5 with 884 advances & 515 declines during the day.

In nutshell, Nifty has achieved the recovery targets of 5490 & now it is in resistance zone of 5510-5555 which is unlikely to be breached. Short term momentum oscillators are in favor of decline to 5440, 5380 & 5300 in coming days. The short term bearish outlook will get negated if Nifty moves & closes above 5555 in next few sessions. The best strategy is to focus on stocks which have given bullish breakout in intra day/hourly charts & book profit in stocks which have risen sharply in last 2-3 days.

Astrological Outlook for the Week (30th August 2010 - 03rd September 2010)

Current Planetary Position  - Astrologically, in Transit, 2 Planets i.e. Sun (In Magha Constellation, ruled by Inimical Ketu ) and Mercury (In P.Phalguni Constellation, ruled by Friendly Venus) are placed in Leo. 3 Planets i.e. Mars (in Chitra Constellation ruled by Mars herself ), Saturn (In Uttar phalguni Constellation, ruled by inimical Sun) and Debilitated Venus (In Chitra Constellation, ruled Neutral Mars) are placed in Virgo. Moon will transit through Aries. Retrograde & Debilitated Rahu and Retrograde Pluto are placed in Sagittarius. Neptune  is Placed in Aquarius. Retrograde Jupiter (In U. Bhadrapad Constellation, ruled by Neutral Saturn) along with Uranus are placed in Pisces. Retrograde and Debilitated Ketu is placed in Gemini.  Moon will be transiting through Aries, Taurus and Cancer during this week. 6 Planets are in retrograde motion as on 30th August i.e. Mercury, Jupiter, Rahu, Ketu, Uranus, Neptune and Pluto. On 26th Agust Sun was trine to Pluto. Venus will enter Libra on 01st Sept. Sun will trine Rahu on 02nd Sept., Sun will conjunct Mercury on 03rd Sept 2010.

Expected Weekly Movement -In totality, keeping all the planetary configuration, bullish and bearish aspects in mind, month of August is likely to be highly volatile and un-predictable. There are chances of sudden , sharp and unpredictable swings on both sides of the market. There are very complex kind of aspects, both bullish and bearish which are capable of bringing market up and down at very short interval. During next week ........ ....... ......... ........ ......... ........ For Paid Subscribers Only(This is preliminary analysis of the market which will be updated everyday for day and swing traders through live market updates and trading calls. Note- Most of the astrological aspects work plus/minus few hours so it is better to follow live updates before entering into any positional trades) 

Trading Strategy - Keeping in mind the different Astrological Turning Dates during the week, For conservative Traders "Light ........ ....... ......... ........ ......... ........ For Paid Subscribers Only  may give good profit during the week.

World Markets - Astro-Technically

Crude Oil
Technically, After declining sharply from $87 to $64, Crude Oil has been moving in an "Ascending Triangle" Pattern having resistance @ $80-$80.50. Bullish Breakout above the resistance is capable of taking crude to $88-$90 in coming weeks, whereas breakout below the support can target $64-$65 in coming days.(From 5T-020810). Astrologically, crude is likely to be mildly bullish this week. Oil likely to move up on 30th/31st and again on 03rd September 2010.

GOLD
Technically, Gold had given bearish breakout from "Rising Wedge" Pattern on 01st July, setting a bearish Target of $1125-$1140 which is likely to be achieved soon. In the meanwhile, in Extreme Short Term Charts, Gold gave bullish breakout from "Falling Wedge" pattern rising from $1155 to $1246 and now it is Extremely overbought and ripe for corrective decline to 1205-1210 in near term.. Astrologically, Gold is expected to remain volatile this week with negative bias. Select adverse aspects are  indicating decline in extreme short term particularly on 02nd/03rd September 2010. 

SILVER 
Technically, Silver is moving in a "Triangle" pattern for last few weeks with support at $17.30 and Resistance at $18.35. Breakout on either side is capable to giving a move of $1.00-$1.25 in near future(From 5T-020810). Astrologically, Silver is looking mildly bearish initially but likely to bounce back towards close of the week i.e. 03rd Sept 2010.

US Dollar/ Indian Rupee ( USDINR)
Technically, as mentioned last week that INR /USD continues to move in a "Falling Wedge" pattern since June 2009 having resistance at INR45.60 and Support at INR44.00. Bullish Breakout from these levels may target INR47.50-INR48.00/USD in coming Weeks. In Near Term, INR may face Resistance at 47.75 and bullish crossover will set higher targets of 49.50 - 50.00 in coming weeks. (From 5T-120710)  Astrologically, This week may see 2 way movement i.e. mildly bearish initially but likely to favour US Dollar towards close of the week.  

US Markets  
Technically, after giving breakout from bearish "Rising Wedge" Pattern and remaining below the Rising Resistance line this pattern both Dow Jones and NASDAQ declined sharply from 11258 to 9757 and 2535 to 2139 respectively. During it's pullback move, Dow Jones touched 10719 and declined sharply losing more than 700 points to touch a low of 9936. Dow Jones has strong support in 9600-9650 Zone and if this support is taken out, it may be heading for 8700-8800 in coming weeks. Astrologically, Both Indices may open higher but higher levels are unlikely to be sustained and both Indices may drift lower till 02nd Sept. Chances are Indices may recover on 03rd Sept from Lower Levels . 
 

Analyzed by,
Rohit Dinani - CFTe, IFTA(USA), Jyotish Shastracharya (AIFAS)
Gulshan Kumar -  Dip.T.A, MSTA(London), CFTe, IFTA (USA), Jyotish Shastracharya (AIFAS)
Website: www.5trades.com / Email : 5trades@gmail.com / Tel: 09999491935

Disclaimer : The Technical and/or Astrological analysis provided in this newsletter is for the purpose of education and guidance of investors and traders. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. Any information, analysis, recommendations, opinions and suggestions are given with the understanding that readers acting on this information assume all kind of risks involved in trading and investment. Under no circumstances, Analysts / Astrologers will  be liable for any loss, profit, special or consequential damages that result from the use of the contents in this newsletter. Trading in stocks is a high risk activity which can wipe off more than your entire capital. Trade at your own risk only with adequate research and judgment.
Disclosure: None of the analysts/astrologers have any position in any of the recommended stocks.