- If you are getting bullish on updays and bearish on downdays, then close your eyes and step aside.
- It's pouring confusion and reducing visibility on what lies ahead in market
- Don't ignore RISK: Considering the fact that we just witnessed 7 full years of ZIRP (zero interest rate policy), I probably shouldn’t be surprised just how massive the investor migration into risk assets, like junk bonds and leveraged loans, has been~ US based analyst
- The line of hope for Global markets: 1820 on S&P500.
- Visualizing Scenario: How will market form a bottom? - By scaring everyone and making them believe so. This is how Jim Paulsen described it on CNBC
- Traders don't trade markets. They trade their beliefs about the market
- Nifty after a disastrous start to 2016 has done quite well in last 5 trading sessions
- The trend is on the way down with periodic upmoves ~ Udayan Mukherjee, CNBC
- The real trouble spot = FII selling. On Jan 27: FIIs net sold shares worth Rs 367 cr. The good news: DIIs net bought shares worth Rs 500 cr (prov).
- There is no bullishness in the world on emerging markets.
- Nifty has broken 7550 level and on any relief rally: sellers will re-initiate shorts around that level
- There is real problem with stocks that form Nifty. Market hates most of the stocks and it is becoming difficult to visualize which stock can help Nifty
- The HOPE: Strong rally in Reliance will change the sentiment of the market participants. Reliance stock has strong support around 980-990
- The best opportunity does not present itself on the news day. It comes later - may be after few days or weeks.
- Trading Rule: Strong stocks are attractive buys at 200 dma. BPCL has come down to 200 dma. Will Bulls jump in to buy or stock appears overstretched?
- Applying the above rule: Tata Elxsi - strong stock - has managed a bounce of 15% from 200 dma just in last 6 trading days. The only problem: it happened during extreme panic.
- Nifty stock: Cipla is standing at very strong support level of 572. If the stock can hold this level - a rally of 20% appears feasible.
- FOMC decision done. The event that matters to Indian market: RBI monetary policy on February 2, 2016. Will RBI do anything in current Global chaos and before budget
- Bank Nifty is in firm downtrend. Nobody wants to touch Banks
- The intense sell off has lowered all expectations from the budget. But keep an eye on stock specific moves. The market will start pricing in HOPE.
- Things are falling in place for SKS Micro Finance
- 1 USD = 68.09 INR
- Bulls Live above 200 dma whereas Bears live below it. Breakdown below 200 dma does become problematic. Here's what happened to a bullish stock Glenmark Pharma stock when it broke 200 dma
- When stocks rally a lot - they don't collapse, they consolidate and prepare for next bullish move. Pidilite stock doing the same.
- India has overtaken Thailand as the world's largest rice exporter in 2015, shipping 10.23 million tonnes.
- KRBL stock has not seen any correction in last 3 weeks and still holding on: sign of strength
- Momentum watch: Pipavav stock made a huge move in Dec but then succumbed to Global selling. The big question: When will the rally resume and where is the support?
- Is the Apple iPhone story over?
- Don't worry about markets. They will adjust
- One thing is certain from 120 years of market history, no market goes straight down or straight up.
CLSA ON RIL : Maintains Buy; raises target to Rs 1,275 from Rs 1,230
— EconomicTimesMarkets (@ETMarkets) January 20, 2016
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