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Nifty Technical Outlook Post Budget

Nifty is trading in the broader range of 8500-9000 since last 6 months and a lot of Investors are wondering whether it has the strength to further move-up or has it already made a top.  So, here’s a technical perspective on the same.While fundamental analysis is the way to go in identifying reasonable valuations; technical analysis might just aid you in taking those decisions. This technical research article may help us to reasonably identify possible directional cues for Nifty from hereon. As per Technical Analysis, Nifty is in a “Bull Trend”. A Bull trend simply means that Nifty is likely to continue to move up. A bull trend is identified by a series of rallies where each rally exceeds the highest point of the previous rally. The decline between rallies ends above the lowest point of the previous decline. As we can see from the chart below Nifty has been […]

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Category:Economy, Learn

Investors waiting at the finishing line!

In anticipation of major policy shift at the centre, investors have poured huge amount of capital in equity markets. They were patiently waiting at the bay till late December 2013 to see if there was a remote chance of improvement in business activities across the country. Elections results of Rajasthan, MP & Chhattisgarh gave investors a hope that the voters are likely to challenge the status quo and choose Modi’s vision of inclusive growth and development agenda at the central elections. The market rally began well before Modi’s rigorous national election campaign. Investors expected that the Modi government will do away with the policy gridlocks of the previous complacent government and dark clouds hovering over the companies would clear. However, growth agendas take time to materialize due to high public investments required at the initial stages. We can experience a similar situation now. Extremely high optimism surrounds the Arun Jaitley […]

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Graph 5

Intermarket Analysis of the markets.

This article includes our Technical view on: 1)      International Gold 2)      USDINR Pair 3)      Crude 4)      Indian Equity International Gold International Gold has given a downward breakdown from the “Descending Triangle Pattern”. Descending triangle is a bearish chart pattern used in technical analysis that is created by drawing one trendline that connects a series of lower highs and a second trendline that has historically proven to be a strong level of support. It clearly shows that the demand for an asset is weakening, and when the price breaks below the lower support, it is a clear indication that downside momentum is likely to continue or become stronger. Ideally after this breakdown, Gold should have gone to 1000/1020 levels. However after the breakout there was no follow-up action on the downside. We have also seen a “Hammer” on the charts. As the name says whenever a hammer appears especially after a […]

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Category:Economy, Learn

Where the markets will go? Who cares… I know my Investments!

These days, when I meet my friends and relatives, more often than not the conversation veers predictively towards a version of “Where do I see the markets going forward over next…”. The time frame does not matter; I have come across all, from next few days to weeks to months to years. Yet invariably my answer most of the times have veered towards “I don’t know!” And this always comes as a bit of a shock but more importantly as a disappointment. However, it’s not hard to understand their shock and disappointment. Perhaps, I would have felt the same if I were to come across someone (like a Doctor) whom I see as an expert and if most of the time his responses to my queries are “I don’t know!” The disappointment they feel is probably much greater, because they have seen my peers launch in to highly sophisticated exposition […]

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Rupee Technical Report

Rupee Technical Report

Current Spot Quote: 61.50 View: Bearish (On rupee) Target: 66.50 Time-frame: By Feb 2015 Strategy: Create longs between 61-61.50 with a Stoploss of 57.8 for 66.50(Spot levels) Rational Currency Chart As can be seen from the Charts USD-INR has a Strong support placed at 60.50 levels with other crucial trendline support placed at 61/61.2 levels. On a standalone basis charts suggest USD-INR Pair would have probably bottomed and any dips could be used an opportunity to buy. Inter-market Analysis Over a period of time emphasis in the Technical world has shifted from Single Market to a more inter-market approach. In an increasingly interrelated financial world, the ability to study all markets gives Technical Analysts a huge advantage. No markets move in isolation and analysis of one market should include all the others. The four major groups are stocks, bonds, commodities and currencies, of which, Dollar and commodities trend in opposite […]

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