FIIs were net sellers of equity on all three trading days this week. Their total net selling was worth Rs 24 Billion. DIIs were net buyers on all three trading days. Their total net buying was worth Rs 28.8 Billion, as per provisional figures.
CPI inflation rose to a 4 months high of 4.87% in May '18 as compared to 4.58% in Apr '18 and 2.18% in May '17. Higher food and fuel prices were the components stoking inflation.
The IIP number increased a little to 4.9% in Apr '18 against a 5 months low of 4.4% in Mar '18. Mining and scientific instruments were positive contributors, while gold jewellery was a negative contributor.
The daily bar chart pattern of Nifty shows that bulls are gradually overcoming all the challenges thrown at them by bears - by moving above the downward 'gap' of Feb 5 and testing resistance from the (purple) down trend line.
The trigger may have been provided by last Friday's (Jun 8) trading, when the index dropped inside the 'gap' intra-day, but bounced up to close above it.
Nifty breached the down trend line during intra-day trading today, but pulled back below the trend line on profit booking before closing exactly on it. Bulls will regain control of the chart once the index crosses above its previous (May 15) top of 10929.
Daily technical indicators are in bullish zones but looking overbought. MACD is rising above its signal line, and has entered its overbought zone. RSI is slowly moving up towards its overbought zone. Slow stochastic is well inside its overbought zone.
Nifty's TTM P/E has risen to 27.54 - which is much higher than its long-term average. The breadth indicator NSE TRIN (not shown) has emerged from its overbought zone, and can limit further index up side.
Rising inflation without much growth in industrial production is a worrying sign. So is the weak Rupee. The index is where it was in end Feb '18 in US Dollar terms. That is one of the reasons why FIIs are not buying. Oil's price has moderated a bit, but can go up again after OPEC's meeting on Jun 22.
Q4 (Mar '18) corporate results have shown revenue growth but margin pressure. Nifty's TTM P/E is looking unsustainable with no earnings improvement in sight. Remember that you make money in the stock market by being fearful when others are greedy - and vice versa.
Nifty is trading above its three rising EMAs in a bull market. The long-term structure of the chart remains bullish. Small investors should be cautiously optimistic.
CPI inflation rose to a 4 months high of 4.87% in May '18 as compared to 4.58% in Apr '18 and 2.18% in May '17. Higher food and fuel prices were the components stoking inflation.
The IIP number increased a little to 4.9% in Apr '18 against a 5 months low of 4.4% in Mar '18. Mining and scientific instruments were positive contributors, while gold jewellery was a negative contributor.
The daily bar chart pattern of Nifty shows that bulls are gradually overcoming all the challenges thrown at them by bears - by moving above the downward 'gap' of Feb 5 and testing resistance from the (purple) down trend line.
The trigger may have been provided by last Friday's (Jun 8) trading, when the index dropped inside the 'gap' intra-day, but bounced up to close above it.
Nifty breached the down trend line during intra-day trading today, but pulled back below the trend line on profit booking before closing exactly on it. Bulls will regain control of the chart once the index crosses above its previous (May 15) top of 10929.
Daily technical indicators are in bullish zones but looking overbought. MACD is rising above its signal line, and has entered its overbought zone. RSI is slowly moving up towards its overbought zone. Slow stochastic is well inside its overbought zone.
Nifty's TTM P/E has risen to 27.54 - which is much higher than its long-term average. The breadth indicator NSE TRIN (not shown) has emerged from its overbought zone, and can limit further index up side.
Rising inflation without much growth in industrial production is a worrying sign. So is the weak Rupee. The index is where it was in end Feb '18 in US Dollar terms. That is one of the reasons why FIIs are not buying. Oil's price has moderated a bit, but can go up again after OPEC's meeting on Jun 22.
Q4 (Mar '18) corporate results have shown revenue growth but margin pressure. Nifty's TTM P/E is looking unsustainable with no earnings improvement in sight. Remember that you make money in the stock market by being fearful when others are greedy - and vice versa.
Nifty is trading above its three rising EMAs in a bull market. The long-term structure of the chart remains bullish. Small investors should be cautiously optimistic.
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