Month: December 2018

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Nifty Breached 200-DMA; Realty and Auto Stocks Drag Market

Today’s Action

Benchmark indices witnessed a sharp sell-off for three consecutive days. Nifty, -1.7%, Sensex, -1.6%, Model Portfolio, -2.4%; MSI Ind 47, -1.9%.

Daily Market Review

The Nifty and the Sensex ended in red for the third consecutive day ahead of OPEC meeting which may result in possible supply cut. In addition, the arrest of Huawei’s CFO in Canada may lead to fresh round of trade concerns between the U.S. and China. Continue reading “Nifty Breached 200-DMA; Realty and Auto Stocks Drag Market”

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Industry Update: November 2018

On November 2, the Indian market was moved to a Confirmed Uptrend.  Since then, the Nifty has added two distribution days. However, further accumulation of distribution days could lead to change in market status to an Uptrend under Pressure. The US market is currently in a Confirmed Uptrend.  In November, we added stocks primarily from the Pharma and Consumer sectors in our India Model Portfolio.

India’s GDP growth was at 7.1% y/y during the July-September quarter, its lowest in three quarters. Construction and Manufacturing grew at 7.8% and 7.3% respectively, while Mining contracted by 2.4% for Q2. Continue reading “Industry Update: November 2018”

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Daily Big Picture – Nifty Metal and Pharma Drag Market; RBI Keeps Interest Rates Unchanged

Today’s Action 

Benchmark indices witness sharp sell-off for two consecutive days. Nifty, -0.7%, Sensex, -0.7%, Model Portfolio, -0.4%; MSI Ind 47, -0.8%.

Daily Market Review 

The Nifty and the Sensex ended in red for the second consecutive day, tracking weakness in global markets. The Sensex (-0.7%) observed a distribution day, increasing the count to 3, while the Nifty (-0.7%) escaped a distribution day as the volume was low.  Continue reading “Daily Big Picture – Nifty Metal and Pharma Drag Market; RBI Keeps Interest Rates Unchanged”

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Daily Big Picture – PSU Bank Under Pressure Ahead of Monetary Policy; IT Stocks Gain

Today’s Action:

The Nifty breaks the six day winning streak. Nifty, -0.1%, Sensex, -0.3%, Model Portfolio, +0.1%; MSI Ind 47, -0.3%.

Daily Market Review:

The Nifty and the Sensex put up a muted show. Volumes were low today. Crude oil gains more than 2% ahead of OPEC meeting.   Continue reading “Daily Big Picture – PSU Bank Under Pressure Ahead of Monetary Policy; IT Stocks Gain”

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Why Overhead Supply Is A Threat To A Stock

Resistance makes stock prices go down and builds tension. Support buoys a stock up, often setting the stage for a release to new highs.

Support occurs as buyers step in at prescribed levels to maintain or boost a stock’s price.

A stock hits resistance at levels where certain shareholders have decided to sell. An institution could be hitting its projected price target. Or the stock may be 20 – 25% above its most recent buy point, triggering some investors to take profits. Continue reading “Why Overhead Supply Is A Threat To A Stock”