Fundamental Analysis: Is the market forming a new bottom?

The financial collapse of 2007 and the recession that followed left many economists on the defensive. News programs, magazines, pundits, and even Queen of England all asked some variant of questions, why didn’t you see it coming? Some in the economics community wrote articles or convened conferences to examine how they could have gotten it so wrong; others engaged in a full-throated defense of their profession. For many who were hostile to the fundamental assumptions of mainstream economics, the crisis was proof that they had been right all along: the emperor was finally shown to have no clothes. Public confidence in authority was badly shaken.

-Excerpt from the Fault Lines by Raghuram Rajan

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Share market basics: Overhead Supply Can Repulse A Stock’s Climb

“Just remember buying at new highs is buying into emerging strength.” – William J. O’Neil

Overhead supply, also known as percent off high, represents price levels at which a stock’s recovery is impeded as it tries to rally back from a steep decline. The pressure comes in the form of investors who bought the stock earlier at lofty prices and are waiting for the stock to recover just enough so they can sell and break even.

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Weekly Big Picture : Financial Stocks Most Affected; follow these share market tips to stay safe

Weekly Action

Nifty, -12.2%; Sensex, -12.3%; Nifty Midcap, -13.5%; Nifty Smallcap, -17.9%; Model Portfolio, 0%.

Market Pulse “Downtrend”

Weekly Market Review

Nifty snapped its four-day losing streak to close in positive today. However, it lost over 12% during the week, and at a three-year low. Nifty Midcap (-13.5%) and Smallcap (-17.9%) declined with the market. Financial stocks were the most impacted as the index lost as much as 20% during the week.

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Daily Big Picture: As Nifty continues to decline, what does the future have in store?

Today’s Action

Nifty, -2.4%; Sensex, -2%; Nifty Midcap, -4.3%; Nifty Smallcap, -5.5%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Downtrend

Nifty, after a gap down opening, traded toward the day’s high of 8,575. However, it succumbed to selling pressure in the last hour of trading and erased its gains to close below 8,300. About 80% of Nifty50 stocks closed in the red.

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Daily Big Picture:A 3-year low; will Nifty survive this?

Today’s Action

Nifty, -5.6%; Sensex, -5.6%; Nifty Midcap, -5.5%; Nifty Smallcap, -6.3%; Model Portfolio, 0%

Daily Market Review

Market Pulse: Downtrend

Nifty opened higher but selling pressure quickly grappled the markets. The index breached the low made on Friday, and is at a new three-year low. Around 90% of Nifty50 stocks ended in the red. Coronavirus cases in India increased to 147, with 10 fresh additions today.

Zee Entertainment Ents. (+23.3%) helped the Nifty Media (+0.4) to be the only index to close positive. Nifty Pvt Bank (-6.9%) and Financial Services (-6.7%) were the major decliners. Advance-Decline ratio was highly skewed toward decliners. Of 2,125 stocks traded, 273 advanced, 1,569 declined, and the remaining traded flat.

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