- New consensus: As long as interest rates are near zero in developed world, there is nothing to worry on Global equities.
- The biggest risk before world: Sharp rise in 10 year Govt bond yields.
- US stocks posted strong gains in Februray. The Dow gained 5.64% for the month, its best since January 2013 whereas S&P500 was up 5.5% for the month, the best since October 2011. Similarly, NASDAQ index gained 7.1% for the month, its best since January 2012
- NASDAQ today touched 5000. The last time it touched that level was in March 2000. Just see how much index has changed.
- World is definitely different this time around. Not much celebrating or streamers. Lots of lessons learned ~ On Nasdaq hitting 5000
- Fundamentally and Technically, US markets are too stretched and due for pullback. The problem: everyone thinks so and market is not obliging with any correction. Here's S&P500 weekly chart
- Nothing matters right now. Goldman Sachs has revised US GDP numbers downards for Q1. Strong dollar has already hammered earnings expectations but does anything matter right now?
- The other Global market traders are interested in: China. Will China SSEC Composite index breakout above 3400? The index is moving up again
- China's central bank has slashed benchmark deposit and loan interest rates by 25 basis points from March 1, a second such cut in three months. It seems to be helping equities. The cut will bring the one-year deposit rate to 2.5 percent, and the lending rate to 5.35 percent, according to a statement on the website of the People's Bank of China (PBOC)
- The Bull market in India completely intact with Nifty near 9000 post budget
- Private Sector Bank stocks are in strong Bull market. It seems Axis Bank investors fairly excited with Budget. The stock is up 14% in last 2 days
- L&T was ready for pre-budget rally before budget and has done quite well post budget. I covered the stock on Feb 26 when its price was at 1697
- There is no doubt that budget is strong on Infra: Allocation of INR 70,000 crores to Infrastructure sector, tax-free bonds for projects in rail road and irrigation, and the new PPP model for infrastructure development. No wonder some infra and cement stocks rallied big time today
- ITC: One stock that is really upset with Budget. In last two days, stock has sold off to 100 week ma - average which it has not breached since July 2009
- One stock that ignored budget completely: Reliance. No major move in any direction
- MCX has seen very strong momentum over last 2 weeks. Don't attribute this to budget because move started much earlier.
- These were three pre budget plays - smarketpremium.com was keeping an eye on. Here's how they performed
- Here are two stocks that have broken out post Budget and look good for solid action ahead. This is only for Valued smarketpremium.com subscribers.
- Bajaj Auto is at Long term support (100 week ma) which it has held since 2012. Will the stock hold? Does it offer long term buying opportunity?
- Disinvestment News: Govt. plans to divest 5% stake in BHEL and raise close to Rs 3500 cr through it; divestment overseas road show to begin from March 16. BHEL stock has a stiff resistance at 290
- Strong Stocks are buys on pullbacks. Naukri stock is in strong bull market. Does the current pullback to 200 dma = Buying opportunity? Technically yes but if stock breaks down below 780 - then the strength will be questioned
- PSU Oil marketing companies rallied today on fuel price hike. But this tweet tells you a lot about subsidy problem
- Has Brent crude put a bottom place in Feb with long legged doji around $45. Chartists now believe so
- "There are 2 basic rules about winning in trading: 1. If you don't bet, you can't win. 2. If u lose all your chips, u can't bet." ~Larry Hite
- "You never know how strong you are until being strong is the only choice you have." ~ Bob Marley
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