- Bad News: Instead of 247,000 new jobs that most economists were expecting, there were only 126,000 new jobs added (US economy)
- This is how S&P500 futures reacted to disappointing US jobs data on Friday.
- Economists reaction to bad jobs data: "Payrolls are always volatile, even at the best of times."
- How bad news was good news till date? - US economy not strong enough to trigger a rate hike by US Fed. Post soft jobs data: many market participants can take a view of no rate hike in 2015. Zero interest rates make stocks attractive
- THE FEAR: Will S&P500 decisively break down below 2040 - level which it has held for 2 months
- We are in Earnings period now. One reason of worry for Bulls is the divergence between S&P 500 price performance and how much earnings expectations have come down
- Fundamentally and Technically, US markets are too stretched and due for pullback. Corrections have been rare event. Here's S&P500 weekly chart
- Earnings Recession?: For Q1 2015 and Q2 2015, analysts are now predicting year-over-year earnings declines of 4.6% and 1.9%, respectively ~ earnings analyst at Factset
- What market does matters more than what market is supposed to do. Despite lots of worries - it would be sensible to follow the market action first before reaching any conclusion
- Nifty has gone sideways now with resistance at 9000 but firm support on downside between 8000-8200. The 200 dma now stands at 8185
- Nifty has come off from highs of 9000 in March but don't blame FIIs for that. They continue to be net buyers of stocks. FIIs net bought stocks worth Rs. 8717 crores in March 2015
- One of the most under appreciated feature of Bull market: Stable INR. Here's USD INR weekly chart
- This week there will be lots of noise around Credit policy. Bank stocks avoid as of now
- Earnings Season: Infosys is right at 100 dma. Will bulls use this opportunity to add in anticipation of good results.
- TCS is at 200 dma but with market not very confident on its earnings numbers. Will stock breakdown or this is another buying opportunity?
- Bharti has defined a well established trading range for itself: 330 on the downside and 415-425 on the upside.
- One stock that has stunned everyone and continues to do do: Sun Pharma. Stock scaled fresh highs even on April 01.
- Here's one stock that has made strong momentum move in last few weeks and now appears buy on dips. The stock is Century Textile and here's the daily chart
- Here's another stock that made impressive move last week. Is Biocon trying to move higher?
- The biggest risk right now: Global Cues. Also we are in earnings season and earnings disappointment can also break the back of the market
- Most Bullish Global equity market right now: China. Chinese Shanghai Composite index is up 60% in last 6 months
- Chinese now more interested in stocks than housing. Chinese Govt now taking steps to revive Housing market
- Tweet of the day
- "Diversification is a hedge for ignorance." - William O'Neil
- "The stock market is not efficient because there are too many poorly conceived opinions." ~William O'neil
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