- Month to date: Nifty is up 7.7%.
- Who should get the credit? Budget OR Oversold market at 200 week ma OR Supportive Global environment.
- Feb 2015 Budget resulted in the market top around 9000 on Nifty. Can we say this Feb 2016 Budget marks the market bottom on Nifty?
- Technicals: Nifty has bounced with intensity from well defined support of 200 week ma. And I told you about 200 week moving average on Nifty much before the rally started.
- On a Longer term basis: Nifty now has solid base at 200 week moving average which it has not broken since 2012
- The good news is that FIIs are not selling. They have already put in Rs. 5274 crores in the market this month. DIIs have been little cautious this month
- The move in market is for real. Look at how Yes Bank after stalling at 200 dma - finally made a fresh move today. The stock looks like a leader in this bullish phase of the market
- One sector that has hugely underperformed last year and right now is underowned: PSU Bank. Is market going to be kind to this sector in next 12 months?
- Early signs are good. Govt has allowed banks to revalue real estate assets on its books and that's great news for these banks. This is PSU Bank ETF Chart
- SBI to be biggest beneficiary of new RBI capital rules: IDBI Cap
- 2016 Budget = Rural Budget. No surprise to see Hero Motors making a 12 month high in March and looks good for more
- 1 USD = 67.1 INR
- One sector that has gone into SLEEP mode - Largecap IT. The stocks be it Infosys, Wipro or HCL Tech have hardly made any significant move for quite some time now. This is HCL Tech chart of last six months
- Here's Infosys stock chart - Up, down, Up, down
- Tech Mahindra has rallied from the support. The stock is now trading at 464
- One stock that has participated in this rally with great intensity: Reliance Infra. The stock is up 25% this month
- As per news report: DIPP has approved 12 industrial licences to Reliance Defence, an arm of Reliance Infrastructure, for manufacturing of a wide range of defence equipment. This is Bullish news for Pipavav.
- Who says steel is a bad investment. This is JSW Steel chart.
- Thanks to Govt: Steel Ministry has brought down the import of steel this fiscal, an issue that has eroded profitability of the domestic producers
- Two stocks on Bull market watch: 1. UPL; and 2. SKS Micro Finance
- One sector that has made remarkeable turnaround in last six months: Sugar
- It means Sugar stocks are attractive buys now on every pullback. Remember, this is another underowned sector.
- One company to keep an eye on: Wabag. Water treatment player VA Tech Wabag has bagged a Rs 594 crore contract to construct and operate a plant in Chennai.
- One thing is certain from 120 years of market history, no market goes straight down or straight up.
- Do you want to learn Technical Analysis? - Science of Stock price action
Brazil posts its worst GDP numbers in 25 years
Brazil market rallies 20% in a week
— Deepak Singh (@smarket) March 4, 2016
In case you missed it - Nifty is right now standing at the ULTIMATE support level https://t.co/ye533VhNMN
— Deepak Singh (@smarket) February 15, 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