Review of last week analysis –
Last week prediction was somewhat accurate, specially the start of the week. As predicted Nifty was sustain the gap up opening. Nifty opened gap up and went sideways. The next day it gave a strong bearish move. For mid-week it was predicted to be Bullish to sideways, the market went sideways and gave a Bearish closing on Friday.
Fundamental analysis
Global Risk Sentiment – The recent confrontation of Iran with US and Isreal have heightened the tensions in the Middle East. Due to that this week looks Bearish and can be volatile.
Domestic factors – The domestic factors look stable.
Institutional Flow – FII remain net sellers with heaving selling in the last week of Feb, while strong SIP inflows allow DIIs to buy aggressively on dips, absorbing the selling pressure.
Overall, fundamentals suggest negative market environment this week due to middle east situation.
Technical analysis
Option Chain – This week there is a heavy call writing in the range of 25500 to 26000. So the Monday expiry looks to be below 25500 level as 3rd march Tuesday is holiday. Nifty is expected to take support around 25000 – 24800 levels this week.
Reaching these levels can bring some bounce and consolidation.
Nifty made a strong bearish candle last week. So there is high probability for a Bearish or doji candle this week.
Astrological analysis
This week Muntha is in 6th house and Jupiter retrograde is in 2nd house which can give market a cushion from aggressive selling and market can form a temporary base specially on 2nd and 4th March.
In mid-week the Moon is in 11th house in Virgo which is a positive sign while Jupiter in 8th house and Venus with Saturn in 5th can restrict the market at upper levels for any bounce might get sold.
So the direction looks mixed for next week. Nifty can be negative to sideways on Monday and Wednesday then can be sideways for rest of the week making a doji candle for the week.