FIIs were net sellers of equity on the two trading days (Mon. & Wed.) this week. Their total net selling was worth Rs 33.9 Billion. DIIs were net buyers on both days. Their total net buying was worth Rs 32.1 Billion, as per provisional figures.
Nikkei India's Manufacturing PMI strengthened to 52.2 in Sep '18 from 51.7 in Aug '18. (A figure greater than 50 means expansion). GST collections rose to Rs 944 Billion in Sep '18 from Rs 937 Billion in Aug '18.
Auto sales during Sep '18 were a mixed bag. Bajaj Auto, Hero Moto, TVS Motors, Tata Motors, Ashok Leyland showed good growth. Eicher Motors, Maruti, Escorts, M&M disappointed.
Providing some respite for bulls, the daily bar chart pattern of Nifty found good downside support from the zone between 10800 and 10900, and closed above its 200 day EMA in bull territory.
The 20 day EMA has crossed below the 50 day EMA - just as it did in Feb '18. A deeper correction below the 200 day EMA had followed then. The pattern may repeat this time as well.
On the downside, expect stronger support from 'Support/Resistance zone 2' (between 10400 and 10600). In case Nifty falls below 10400, it may test its Mar '18 low. That may lead to a change of trend from bullish to bearish.
If there is a technical bounce from the current level, the falling 20 day and 50 day EMAs are likely to provide resistance.
Daily technical indicators are looking bearish and oversold. MACD is falling below its signal line inside its oversold zone. RSI is seeking support from the edge of its oversold zone. Slow stochastic has re-entered its oversold zone. A technical bounce is a possibility, but it may not be a strong one.
Nifty's TTM P/E has moved down to 26.26, but still remains much higher than its long-term average. The breadth indicator NSE TRIN (not shown) is moving up in neutral zone, suggesting more correction.
Macro headwinds - like a falling Rupee, rising oil price, widening fiscal deficit - are showing no signs of abating. With election season in the offing, which is creating more uncertainty, only decent Q2 (Sep '18) results may help the market recover from its doom and gloom sentiment.
Nikkei India's Manufacturing PMI strengthened to 52.2 in Sep '18 from 51.7 in Aug '18. (A figure greater than 50 means expansion). GST collections rose to Rs 944 Billion in Sep '18 from Rs 937 Billion in Aug '18.
Auto sales during Sep '18 were a mixed bag. Bajaj Auto, Hero Moto, TVS Motors, Tata Motors, Ashok Leyland showed good growth. Eicher Motors, Maruti, Escorts, M&M disappointed.
Providing some respite for bulls, the daily bar chart pattern of Nifty found good downside support from the zone between 10800 and 10900, and closed above its 200 day EMA in bull territory.
The 20 day EMA has crossed below the 50 day EMA - just as it did in Feb '18. A deeper correction below the 200 day EMA had followed then. The pattern may repeat this time as well.
On the downside, expect stronger support from 'Support/Resistance zone 2' (between 10400 and 10600). In case Nifty falls below 10400, it may test its Mar '18 low. That may lead to a change of trend from bullish to bearish.
If there is a technical bounce from the current level, the falling 20 day and 50 day EMAs are likely to provide resistance.
Daily technical indicators are looking bearish and oversold. MACD is falling below its signal line inside its oversold zone. RSI is seeking support from the edge of its oversold zone. Slow stochastic has re-entered its oversold zone. A technical bounce is a possibility, but it may not be a strong one.
Nifty's TTM P/E has moved down to 26.26, but still remains much higher than its long-term average. The breadth indicator NSE TRIN (not shown) is moving up in neutral zone, suggesting more correction.
Macro headwinds - like a falling Rupee, rising oil price, widening fiscal deficit - are showing no signs of abating. With election season in the offing, which is creating more uncertainty, only decent Q2 (Sep '18) results may help the market recover from its doom and gloom sentiment.
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