2015 will go down as a year when Indian stock market took a very different dramatic turn. Here are few reasons why -
Nifty is not in Bull Market. This is not even news now
Nifty is down 7% YTD. Having said that - ask any trader and you will hear no complain about it. Many market participants have just abandoned Nifty. Let me put it this way - nobody cares.
FIIs don't matter now. Liquidity now in hands of Domestic Investors
In last 12 months, DIIs have put in 73500 crores in Indian stocks compared to 12000 crores from FIIs. It's not just that - 2015 will go down also as year of confidence in domestic liquidity. We are witnessing flow of real brave money, not worried about Global situation
USDINR is knocking the door of new high resistance of 66.9
INR has lost 6% this year against dollar. So for pure index following FIIs - the loss is 13% on index which sounds huge. Though INR depreciation sounds alarming but in context of Global economic situation: INR is only trying to find a level where it can be more competitive in the world. Just look at Chinese Yuan and alarming depreciation it has seen this year. Here's USDCNY daily chart
Sugar is making a big comeback...Blame it on El Nino
Here's Sugar price Global Chart
Opportunity Screen: Dec 09 2015
Unichem Labs bouncing from 100 dma
As you can see in the chart above: Unichem Labs has been in strong uptrend and seems to be finding solid support at 100 dma. The stock looks ready for good bullish move as long as it trades above 100 dma.
Summary: Opportunity Sheet
The stocks in Nifty: Sun Pharma, TCS and Adani Ports...breaking support.
Please note success of stock highly depends on market structure.
Please share your comments on what you think of stock observations, market and trading in general. Please do your own due diligence before trading or investment. Do not treat the above as any recommendation.
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