FIIs were net sellers of equity on all three trading days this week. Their total net selling was worth Rs 25.6 Billion. DIIs were net buyers on all three days. Their total net buying was worth a whopping Rs 53.7 Billion, as per provisional figures.
The government has approved a Rs 55 Billion package for the sugar industry that includes a two-fold increase in production assistance to cane growers, and transport subsidy to sugar mills for exporting up to 5 million tonnes of surplus domestic stock of sugar.
India's fiscal deficit for the period Apr-Aug '18 touched 94.7% of the estimate for the full year. However, it was slightly lower than the 96.1% figure during the same period in the previous year.
The daily bar chart pattern of Nifty has corrected sharply below its 20 day and 50 day EMAs, but appears to have found some support from the 'Support/Resistance zone 1' (between 10800 and 10900).
Though the index is trading above its 200 day EMA in bull territory, a fall towards 'Support/Resistance zone 2' (between 10400 and 10600) can't be ruled out. By touching a 'panic bottom' of 10866 with strong volumes on Sep 21, the index retraced almost 50% of its rally from the Mar '18 low to the Aug '18 top.
A 61.8% Fibonacci retracement will drop the index to around 10650. That means, it will be imperative for bulls to mount a rally should the index fall towards the 'Support/Resistance zone 2'. Otherwise, a change of trend will become inevitable.
Daily technical indicators are looking bearish and a bit oversold. MACD is falling below its signal line and is ready to enter its oversold zone. RSI has bounced up weakly after receiving support from the edge of its oversold zone. Slow stochastic is oscillating at the edge of its oversold zone. Some consolidation or a pullback towards the falling 50 day EMA is possible.
Nifty's TTM P/E has moved down to 26.87, but still remains much higher than its long-term average. The breadth indicator NSE TRIN (not shown) is hovering below the edge of its overbought zone, and is hinting at some consolidation.
Macro headwinds like high oil prices, a falling Rupee and widening twin deficits now include chaos and uncertainty about the financial stability of private banks, housing finance companies and NBFCs.
Lack of transparency about the Rafale aircraft deal, and Supreme Court's decision against linking of Aadhar cards to bank accounts and cell phones have cast a huge shadow of doubt about the credibility of the NDA government.
The stock market detests uncertainty and usually votes with its feet. That seems to be the real reason behind the indiscriminate selling of even fundamentally strong stocks.
Stick to existing SIPs, but avoid any lump sum investments or adventurous forays into unknown small-caps. Nifty hasn't bottomed out yet.
The government has approved a Rs 55 Billion package for the sugar industry that includes a two-fold increase in production assistance to cane growers, and transport subsidy to sugar mills for exporting up to 5 million tonnes of surplus domestic stock of sugar.
India's fiscal deficit for the period Apr-Aug '18 touched 94.7% of the estimate for the full year. However, it was slightly lower than the 96.1% figure during the same period in the previous year.
The daily bar chart pattern of Nifty has corrected sharply below its 20 day and 50 day EMAs, but appears to have found some support from the 'Support/Resistance zone 1' (between 10800 and 10900).
Though the index is trading above its 200 day EMA in bull territory, a fall towards 'Support/Resistance zone 2' (between 10400 and 10600) can't be ruled out. By touching a 'panic bottom' of 10866 with strong volumes on Sep 21, the index retraced almost 50% of its rally from the Mar '18 low to the Aug '18 top.
A 61.8% Fibonacci retracement will drop the index to around 10650. That means, it will be imperative for bulls to mount a rally should the index fall towards the 'Support/Resistance zone 2'. Otherwise, a change of trend will become inevitable.
Daily technical indicators are looking bearish and a bit oversold. MACD is falling below its signal line and is ready to enter its oversold zone. RSI has bounced up weakly after receiving support from the edge of its oversold zone. Slow stochastic is oscillating at the edge of its oversold zone. Some consolidation or a pullback towards the falling 50 day EMA is possible.
Nifty's TTM P/E has moved down to 26.87, but still remains much higher than its long-term average. The breadth indicator NSE TRIN (not shown) is hovering below the edge of its overbought zone, and is hinting at some consolidation.
Macro headwinds like high oil prices, a falling Rupee and widening twin deficits now include chaos and uncertainty about the financial stability of private banks, housing finance companies and NBFCs.
Lack of transparency about the Rafale aircraft deal, and Supreme Court's decision against linking of Aadhar cards to bank accounts and cell phones have cast a huge shadow of doubt about the credibility of the NDA government.
The stock market detests uncertainty and usually votes with its feet. That seems to be the real reason behind the indiscriminate selling of even fundamentally strong stocks.
Stick to existing SIPs, but avoid any lump sum investments or adventurous forays into unknown small-caps. Nifty hasn't bottomed out yet.
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