- Is China exporting Deflation to the world right now?
- As per World Bank estimates - If China grows 1% less than expected, then it can reduce global growth by 0.5%
- Growth in the world’s No. 2 economy China is already more than 30% lower than many economists forecast. The International Monetary Fund, for example, has sliced nearly four percentage points off its five-year outlook since 2010......Wall Street Journal
- Defining Theme: The world adjusting to China growing sub 7%. Biggest Impact has been on commodities. Just look at the CRB Index
- Despite a slowdown, China's economy is now more than 25-times bigger than it was in 1990. Remember China growing at 6% is still big deal.
- The biggest risk in China is housing slowdown. Persistent weakness in China’s property market may hurt China’s demand for copper over 2015....Goldman Sachs. Copper is consistently hitting fresh lows
- But it seems no such pain in equities. Chinese stock market declined sharply couple of days back but has bounced back with same intensity. The market is on verge of big bang breakout
- There is expectation that India will be new China. Chinese growth to be overtaken by Indian growth in next 2 years...World Bank, IMF
- The Bull market in India is in full form with Nifty touching new high everyday
- Fund Flows: DIIs net sell shares worth Rs. 1,350 Cr on Jan 21; FIIs net buy shares worth Rs. 2,070 Cr on Jan 21 (Prov).
- DII selling impact could be seen in market breadth and performance of midcap stocks. The BSE Mid-Cap index declined 0.24% and BSE Small-Cap index gave up 0.20%. Both these indices underperformed the Sensex
- Banks continue to rally as if there is no tomorrow. SBI now at 326 - just below its all time high of 350
- ITC declined sharply on earnings. In past, every such decline turned out to be great opportunity. Will History repeat? The strong support comes at 100 week ma = 338
- There is real momentum in the market and one can see through that in form of aggressive rotation. What else can explain 4% upmove in Bharti. It worked like a counter move to ITC
- Tata Elxsi breakout move above 670 continues. The stock is now at 801.
- Rallis broke out above 182 in May 2014 but since then stock has done very little progress and results are not helping the stock either. Here's the weekly chart
- Bombay Dyeing has made a big move this week. Here's how it looks on the chart post move. The resistance at 88
- One Breakout to keep an eye on: Exide Ind above 175
- Even in Bull market - one should know which stock to avoid. ADAG group stocks have under performed completely. Take a look at Reliance Capital
- The Biggest threat to Global Financial markets come from Central Banks. The mirage of stability that central banks have fostered in the post crisis era is starting to unravel in a disorderly fashion - Ostwald
- One trade people are going to talk for long time - Swiss Franc...Here's USDCHF daily chart
- Central Banks continue to surprise. After SNB, it was the turn of Central Bank of Canada to surprise market with a 25 bps rate cut.
- "I have no idea where this is going to end." William White warns on Japan, Europe, EMs, & coming consequences of QE
- Why US consumers are feeling good about economy. See the prices at the pump
- "As a trader, you are forced to confront your mistakes because the numbers don't lie." ~Marty Schwartz
ChartSource: Chartalert.com [Indian Stocks]
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers