FIIs were Net Buyers of equity on all three trading days this week. Their total Net Buying was worth Rs 20.2 Billion. DIIs were net sellers of equity on Mon. Oct 14, but were net buyers on the next two trading days. Their total net buying was worth Rs 20.8 Billion, as per provisional figures.
India's CPI-based inflation in Sep '19 climbed to a 14 months high of 3.99% against 3.28% in Aug '19 and 3.70% in Sep '18 due to costlier vegetables and pulses. However, WPI-based inflation dropped to 0.33% in Sep '19 against 1.08% in Aug '19.
India's trade deficit fell to a 7 months low of US $10.86 Billion in Sep '19, as exports contracted 6.57% to US $26.03 Billion, while imports dropped to a 3 year low of US $36.89 Billion - indicating weak demand in a slowing economy.
The daily bar chart pattern of Nifty has been rallying on the back of FII buying during the past four trading sessions. The index has closed above its three EMAs in bull territory.
Further upside is likely, but the (purple) down trend line and the downward 'gap' formed on Jul 8 (i.e. the zone between 11600 and 11800) is expected to provide strong resistance.
Daily technical indicators are in bullish zones. MACD has just crossed above its signal line. RSI is rising above its 50% level. Slow stochastic is above its 50% level, but not showing strong upward momentum.
Nifty's TTM P/E has moved up to 26.48, which is well inside its overbought zone and higher than its long-term average. The breadth indicator NSE TRIN (not shown) has fallen from its oversold zone, hinting at some more near-term index upside.
Despite a good monsoon and low inflation, macroeconomic fundamentals are looking weak. Commercial vehicle sales are down. So are imports and exports. These are signs of a struggling economy.
Q2 (Sep '19) results declared so far have been more or less as per expectations. That is good news. However, top line and bottom line pressure are clearly visible. The rest of the earnings season is unlikely to throw up many positive earnings surprises.
The stock market tends to 'discount' bad news in advance. That means selective buying in fundamentally strong stocks can be initiated. But stay with market leaders among large-cap stocks. The pain in mid-cap and small-cap stocks is going to last a while longer.
India's CPI-based inflation in Sep '19 climbed to a 14 months high of 3.99% against 3.28% in Aug '19 and 3.70% in Sep '18 due to costlier vegetables and pulses. However, WPI-based inflation dropped to 0.33% in Sep '19 against 1.08% in Aug '19.
India's trade deficit fell to a 7 months low of US $10.86 Billion in Sep '19, as exports contracted 6.57% to US $26.03 Billion, while imports dropped to a 3 year low of US $36.89 Billion - indicating weak demand in a slowing economy.
The daily bar chart pattern of Nifty has been rallying on the back of FII buying during the past four trading sessions. The index has closed above its three EMAs in bull territory.
Further upside is likely, but the (purple) down trend line and the downward 'gap' formed on Jul 8 (i.e. the zone between 11600 and 11800) is expected to provide strong resistance.
Daily technical indicators are in bullish zones. MACD has just crossed above its signal line. RSI is rising above its 50% level. Slow stochastic is above its 50% level, but not showing strong upward momentum.
Nifty's TTM P/E has moved up to 26.48, which is well inside its overbought zone and higher than its long-term average. The breadth indicator NSE TRIN (not shown) has fallen from its oversold zone, hinting at some more near-term index upside.
Despite a good monsoon and low inflation, macroeconomic fundamentals are looking weak. Commercial vehicle sales are down. So are imports and exports. These are signs of a struggling economy.
Q2 (Sep '19) results declared so far have been more or less as per expectations. That is good news. However, top line and bottom line pressure are clearly visible. The rest of the earnings season is unlikely to throw up many positive earnings surprises.
The stock market tends to 'discount' bad news in advance. That means selective buying in fundamentally strong stocks can be initiated. But stay with market leaders among large-cap stocks. The pain in mid-cap and small-cap stocks is going to last a while longer.
This post first appeared on Stock Market Charts | India Mutual Funds Investmen, please read the originial post: here
