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FIIs were net buyers of equity on Mon. Aug 27 but net sellers on Tue. & Wed. (Aug 28 & 29). Their total net selling was worth Rs 13.2 Billion. DIIs were net buyers of equity on Mon. & Wed. but net sellers on Tue. Their total net buying was worth Rs 20.3 Billion, as per provisional figures.
As per RBI, Rs 15.31 Trillion of high-value notes (~99.4%) out of Rs 15.41 Trillion in circulation on Nov 8 '16 (the day Modi announced demonetisation) has been returned to the system. Demonetisation was a spectacular flop that hurt the rural economy the most.
A Moody's report has highlighted risks of India breaching the 3.3% fiscal deficit target for FY 2018-19 as higher oil prices will add to short-term fiscal pressures.
The daily bar chart pattern of Nifty touched a new high of 11760 on Tue. Aug 28, but lost more than 80 points today as the market appeared to be spooked by the Rupee falling to a record low of 70.51 to the US Dollar.
Technical headwinds may have also contributed to today's fall. The index is trading well above its three EMAs in a bull market, but the widening gap between the 20 day and 200 day EMAs is a sign of overbought conditions that often trigger a correction.
For the past two months, the index has been trading within a steep upward-sloping channel. Such a steep rise - mainly led by a few large-cap stocks - is unsustainable for long. Enjoy the rally while it lasts, but maintain a trailing stop-loss.
Daily technical indicators are looking overbought. MACD has crossed above its signal line in overbought zone. RSI and Slow stochastic are inside their respective overbought zones. All three are showing negative divergences by failing to rise higher with the index.
Nifty's TTM P/E has moved up to 28.55 - which is much higher than its long-term average and in overbought territory. The breadth indicator NSE TRIN (not shown) dropped like a brick inside its overbought zone, and may be signalling a correction.
Corrections don't happen when everyone expects them. They occur when least expected, and can be severe after such a sharp rally. So, stay invested but remain cautious.
As per RBI, Rs 15.31 Trillion of high-value notes (~99.4%) out of Rs 15.41 Trillion in circulation on Nov 8 '16 (the day Modi announced demonetisation) has been returned to the system. Demonetisation was a spectacular flop that hurt the rural economy the most.
A Moody's report has highlighted risks of India breaching the 3.3% fiscal deficit target for FY 2018-19 as higher oil prices will add to short-term fiscal pressures.
The daily bar chart pattern of Nifty touched a new high of 11760 on Tue. Aug 28, but lost more than 80 points today as the market appeared to be spooked by the Rupee falling to a record low of 70.51 to the US Dollar.
Technical headwinds may have also contributed to today's fall. The index is trading well above its three EMAs in a bull market, but the widening gap between the 20 day and 200 day EMAs is a sign of overbought conditions that often trigger a correction.
For the past two months, the index has been trading within a steep upward-sloping channel. Such a steep rise - mainly led by a few large-cap stocks - is unsustainable for long. Enjoy the rally while it lasts, but maintain a trailing stop-loss.
Daily technical indicators are looking overbought. MACD has crossed above its signal line in overbought zone. RSI and Slow stochastic are inside their respective overbought zones. All three are showing negative divergences by failing to rise higher with the index.
Nifty's TTM P/E has moved up to 28.55 - which is much higher than its long-term average and in overbought territory. The breadth indicator NSE TRIN (not shown) dropped like a brick inside its overbought zone, and may be signalling a correction.
Corrections don't happen when everyone expects them. They occur when least expected, and can be severe after such a sharp rally. So, stay invested but remain cautious.
Posted in: Indian Market
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