WEEKLY OUTLOOK 04AUG TO 08AUG

(Please click on charts to enlarge)

We might not have to look again down towards 12500 in the near term at least!!

BSE SENSEX (14657)

15130 and 15345 are targets as well as resistances for the week. A firm close above 15345 would offer the target of 15800 in very near term. In the event of reversal from these resistances we may stay sideways with negative bias for few more weeks. Supports for the week would be 13800 and 13500 respectively. Hold the longs until 13500 is breached.

(The more optimistic view would be that SENSEX closing above just 15000 levels itself may push us up towards 17500 by next weekend. On the other hand, a breach of 14000 would again push us down towards 12500).

NIFTY (4413)

4540 and 4620 are the targets as well as resistances for the week. In the event of reversing from any of these resistances we may enter into sideways mode with negative bias. Supports for the week are 4165 and 4080 respectively. Hold the longs until 4080 is breached.

The optimistic target this week would be 4775.

The trend for this week is certainly positive but a host of resistances present just above current levels may also cause markets to sweat and would require booster shots occasionally. Where will these booster shots come from…is yet to be seen!

We don’t see any positives at macroeconomic level domestically or around the world. But could the Institutional Investors start investing gradually in China and India immediately –the fast emerging hopefuls for the future! It is a possibility keeping in mind that 12500 for India and 2700 for China are the most likely bottom in this mayhem of Bear Market world over. We could remain in the bear market even by holding onto this bottom. So, what is the harm in long term investing now! Moreover, with the comrades out of UPA government, the debate has heated up the probability of privatization on fast track, come resistance, what may!

Wishing you a happy trading week!

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