Daily Big Picture: Nifty rebounds after a record Fall

Today’s Action

Nifty, +2.5%; Sensex, +2.7%; Nifty Midcap, +1.1%; Nifty Smallcap, -1%; Model Portfolio, 0%

Daily Market Review

Market Pulse : Downtrend

Indian markets rebounded from yesterday’s record fall and closed the volatile trading session above 7,800. 35 out of 50 Nifty stocks closed in the green. Infosys(+12%), Adani Ports and Special Economic Zone(+11.5%), and Britannia Inds.(+10.6%) were the top gainers on Nifty. Today, Nifty breached its yesterday’s low and made a new low of 7,511.1, however, closed in the upper half of the day’s range. So, today’s action qualified as the day one of an attempted rally.

Continue reading “Daily Big Picture: Nifty rebounds after a record Fall”

Daily Big Picture: Lower Circuit for the Second Time in ONE month

Today’s Action

Nifty, -13%; Sensex, -13.2%; Nifty Midcap, -13%; Nifty Smallcap, -12.9%; Model Portfolio, 0%

Daily Market Review

Market Pulse:  Downtrend

Nifty, after a gap down opening, hit 10% lower circuit leading to a trading halt for 45 min. After the trading resumed, the index continued to post unidirectional downward movement and closed near the day’s low with significant losses. All Nifty stocks closed in the red. Axis Bank(-27.6%), Bajaj Finserv(-27.5%), and Indusind Bank (Nse)(-23.9%) were the top three decliners on Nifty. Today, Nifty breached its Friday’s low and made a new low of 7,583.6. So, today’s action led to a reset of follow-through day count for a rally attempt.

Continue reading “Daily Big Picture: Lower Circuit for the Second Time in ONE month”

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

Continue reading “Fundamental Analysis: Is the market forming a new bottom?”

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.

Continue reading “Share market basics: Overhead Supply Can Repulse A Stock’s Climb”

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.

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