- Market price action can make you believe: we are never going down again.
- This is what Nifty has done over last 5 trading days
- It's easy to forget risk when market is rallying. Remember what caused the market to fall in first place: China and its decision to dramatically depreciate Yuan. This is USDCNY weekly chart
- Letting the currency go is going to be part of a package of monetary easing, let’s call it Chinese quantitative easing ~ David Woo, Bank of America
- Strong Dollar is a major major issue. Here's the USD index chart
- The U.S. trade deficit jumped almost 16% in August to $48.3 billion, largely because of a strong dollar that reduced exports to their lowest level in three years
- This is how Nifty closed today on October 06. You can call the day as Bullish consolidation
- On October 06: FIIs net bought shares worth Rs 480 cr whereas DIIs net sold Rs 425 crores worth of stocks
- Technically - 200 week moving average is called Deep Value Buy. ITC seems to have respected this trend
- Lots of folks say - "It's easy to come up with logic after the move." Well how about putting up the logic at the right time
- The key to value investing is to find companies that are trading below their intrinsic value because macro concerns have distracted the market from the company's strong fundamentals, causing the stock to fall.
- Technically: it means buy strong stocks on pullback near 200 dma. Based on the rule - I tweeted this on Sep 10
- Now a month later: Strides Arcolab has bounced a lot from 200 dma
- Value Investing is not buying companies at low that have fallen because of questionable fundamentals.
- BHEL is trying hard to hold levels of 200 and not many people seem excited
- Simply buying a stock because it has lost considerable value may earn you nothing if the stock's fallen on valid concerns
- One theme one should start focus again: Textiles. Himatsingka Seide is now the leader. Also keep an eye on Nandan Denim
- Godrej Properties has formed a text book chart pattern. Any decisive breakout above 320 can lead to strong momentum
- IndiaBulls Real Estate is defying all logic and has made very bullish progress in last few months
- Escorts stock has stiff resistance at 175. Is it ready to rally again?
- Emerging-market corporate debt as a proportion of gross domestic product grew 26 percentage points in the decade through the end of 2014, to 74%, with the largest increases in China, Turkey, Chile, Brazil, India and Peru
- Is the above a reason that "Nobody Loves Emerging markets right now". This is daily chart of EEM ETF
- India is the most expensive market in Emerging market universe
- Always remember, many stocks remain overvalued, keep making new highs whereas some stocks keep making new lows and never become cheap enough for the risk. That's just the way market works
- The market is very random, and the only defense you have is to be as consistent as you can in your behavior.
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