FIIs were net buyers of equity on all five trading days. Their total net buying was worth Rs 48.9 Billion. DIIs were net sellers of equity on all five trading days. Their total net selling was worth Rs 37.5 Billion - as per provisional figures.
According to a CARE Ratings report, production of consumer non-durables (i.e. FMCG products) moderated to 4% in FY 2018-19 from 10.5% growth in FY 2017-18 due to a sluggish economy and limited growth in employment. However, 14 items among the 36 taken into consideration showed increase in growth.
Fitch Ratings have cut India's GDP growth forecast to 4.6% for FY 2019-20 from the previous estimate of 5.6% due to significant growth deceleration in the past few quarters - thanks to credit squeeze and deterioration in business and consumer confidence.
BSE Sensex index chart pattern
The daily bar chart pattern of Sensex rose to touch new intra-day (41810) and closing (41682) highs during the week on the back of strong buying in equities by FIIs. The index is trading well above its three rising EMAs in a bull market.
Daily technical indicators are looking bullish and a bit overbought. MACD has crossed above its signal line in bullish zone. ROC has crossed above its 10 day MA and entered its overbought zone. RSI is hovering just below the edge of its overbought zone. Slow stochastic is well inside its overbought zone, and can trigger a correction or some consolidation.
Bull markets are supposed to climb 'a wall of worries' - and there are plenty of worries for Indian investors. Apart from a sliding economy and rising inflation with a possibility of stagflation, divisive forces have now been unleashed by the government's determined effort to implement CAA and NRC.
That may be a great tactic to win votes in upcoming state elections after a few recent setbacks and divert the nation's attention from gross mismanagement of the economy. But nationwide protests have added to the fear and uncertainty that have already damaged business and consumer confidence.
The lack of buying euphoria is an indication that Sensex may climb even higher. But without investor participation in the broader market (i.e. mid-cap and small-cap stocks), the rally in a few large-cap stocks will peter out sooner than later. Hold on to good large-cap stocks, but avoid buying them at current elevated valuations.
NSE Nifty index chart pattern
After struggling for three weeks, the weekly bar chart pattern of Nifty broke out and closed above its Jun 7 top of 12103, and touched new intra-week (12294) and closing (12272) highs.
The index is trading well above its three rising weekly EMAs in a long-term bull market, and gained 185 points (1.5%) on a weekly closing basis. However, small investors should not get carried away by a rising index.
Note that Nifty has been trading within a large 'rising wedge' pattern for the past three months. Such a pattern has bearish implications - particularly when it forms at an index top. Falling volumes during the past three weeks is another concern for bulls.
Weekly technical indicators are looking bullish and overbought. MACD is rising above its signal line in bullish zone. ROC has crossed above its 10 week MA to re-enter its overbought zone. RSI has bounced up from the edge of its overbought zone. Slow stochastic is moving sideways inside its overbought zone. Bulls appear to be in complete control.
Nifty's TTM P/E has moved up to 28.57 - its highest level for the month and well above its long-term average in overbought zone. The breadth indicator NSE TRIN (not shown) has plunged inside its overbought zone, and can trigger some near-term index consolidation or correction.
Bottomline? Sensex and Nifty charts have touched lifetime highs on the back of strong FII buying. Rising CPI inflation, poor GDP and IIP numbers, a crisis of confidence among consumers and nationwide protests against the Citizen Amendment Act (CAA) do not justify a soaring stock market. Stay invested, but book partial profits wherever available, and avoid buying near lifetime high index levels.
According to a CARE Ratings report, production of consumer non-durables (i.e. FMCG products) moderated to 4% in FY 2018-19 from 10.5% growth in FY 2017-18 due to a sluggish economy and limited growth in employment. However, 14 items among the 36 taken into consideration showed increase in growth.
Fitch Ratings have cut India's GDP growth forecast to 4.6% for FY 2019-20 from the previous estimate of 5.6% due to significant growth deceleration in the past few quarters - thanks to credit squeeze and deterioration in business and consumer confidence.
BSE Sensex index chart pattern
The daily bar chart pattern of Sensex rose to touch new intra-day (41810) and closing (41682) highs during the week on the back of strong buying in equities by FIIs. The index is trading well above its three rising EMAs in a bull market.
Daily technical indicators are looking bullish and a bit overbought. MACD has crossed above its signal line in bullish zone. ROC has crossed above its 10 day MA and entered its overbought zone. RSI is hovering just below the edge of its overbought zone. Slow stochastic is well inside its overbought zone, and can trigger a correction or some consolidation.
Bull markets are supposed to climb 'a wall of worries' - and there are plenty of worries for Indian investors. Apart from a sliding economy and rising inflation with a possibility of stagflation, divisive forces have now been unleashed by the government's determined effort to implement CAA and NRC.
That may be a great tactic to win votes in upcoming state elections after a few recent setbacks and divert the nation's attention from gross mismanagement of the economy. But nationwide protests have added to the fear and uncertainty that have already damaged business and consumer confidence.
The lack of buying euphoria is an indication that Sensex may climb even higher. But without investor participation in the broader market (i.e. mid-cap and small-cap stocks), the rally in a few large-cap stocks will peter out sooner than later. Hold on to good large-cap stocks, but avoid buying them at current elevated valuations.
NSE Nifty index chart pattern
After struggling for three weeks, the weekly bar chart pattern of Nifty broke out and closed above its Jun 7 top of 12103, and touched new intra-week (12294) and closing (12272) highs.
The index is trading well above its three rising weekly EMAs in a long-term bull market, and gained 185 points (1.5%) on a weekly closing basis. However, small investors should not get carried away by a rising index.
Note that Nifty has been trading within a large 'rising wedge' pattern for the past three months. Such a pattern has bearish implications - particularly when it forms at an index top. Falling volumes during the past three weeks is another concern for bulls.
Weekly technical indicators are looking bullish and overbought. MACD is rising above its signal line in bullish zone. ROC has crossed above its 10 week MA to re-enter its overbought zone. RSI has bounced up from the edge of its overbought zone. Slow stochastic is moving sideways inside its overbought zone. Bulls appear to be in complete control.
Nifty's TTM P/E has moved up to 28.57 - its highest level for the month and well above its long-term average in overbought zone. The breadth indicator NSE TRIN (not shown) has plunged inside its overbought zone, and can trigger some near-term index consolidation or correction.
Bottomline? Sensex and Nifty charts have touched lifetime highs on the back of strong FII buying. Rising CPI inflation, poor GDP and IIP numbers, a crisis of confidence among consumers and nationwide protests against the Citizen Amendment Act (CAA) do not justify a soaring stock market. Stay invested, but book partial profits wherever available, and avoid buying near lifetime high index levels.
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