Weekly Outlook - 17 Jan

Weekly outlook on market (and some stocks) by aaditya

Fundamentals

The heavy Selling by FII has been a little surprise to me also (apart from DII, brokers and trading community in general). My take on this is that India's credibilty of emerging market (one of the fastest emerging market) has taken a hit. Wall St. and London doesn't want to buy Man Mohan's Singh 9% growth promise. Not being able to contain the Inflation and poor Industrial has made the matters worse.

Technical

Nifty broke the crucial support level of 5700 and also it has broken the low of 11th Nov (5690). Looking at the weekly chart Nifty shows clear downtrend and 5450 seems the likely stop (since it being the area of congestion and previous support and also it being the near to 161.8% Fibonacci Level (5435) of the december rise).

Stocks

BhartiAirtel, forming good ascending triangle and also higher pivot low.

Cairn, has been resistant to recent downtrend and has pulled back from 6 months high. (But if closes below 325, could be moving downwards) Grasim, at the resistant level and has risen to form 3rd higher Pivot low.

*Not many stocks in forray because of Market's bearishness. Specially Banking sector Looking very bad, SBI, HDFC, Axisbank and ICICIbank, all breaking Donchian Lower Channels.