Thought for the day
"Everything we hear
is an opinion, not a fact. Everything we see is a perspective, not the truth."
—Marcus Aurelius (Roman, 121-180)
Word for the day
Deciduous (adj)
Not permanent;
transitory.
(Source: Dictionary.com)
Malice towards none
"I know about wanting more. I invented the
concept."
Nifty: Good news may give exit to traders
In last few days there has been a spate of news that could cause a
"feel good" rally in Indian equities. Considering that Indian
equities have witnessed waning momentum in past many weeks, this good news
might excite the participants and provide an exit opportunity to traders stuck
at higher levels.
Announcement of mega discom restructuring plan, and commitment for
massive investment in renewable to achieve with emission target may trigger a
rally in the power sector and the lenders facing huge NPA problem from the
sector.
Lower US VISA fee for IT companies, as the 2010 law that raised
the fee to US$2000 lapses, could cheer IT sector where a number of companies
including Infosys, HCL Tech and Tech Mahindra have issued profit warning in
past couple of months.
The news that the government is considering a substantial
disinvestment plan in public sector undertakings could potentially reverse the
slide in PSU stocks seen in past few months.
Some poor job data in US triggered a massive rally in safe haven
bonds, clouding rate hike plans of US Federal Reserve. Further strengthening of
sentiment could stem the outflow from EM equities providing some relief from
FPI selling in past couple of months. We may even see some inflows in view of
strengthening INR and opening of further limit for FPI investment in government
bonds.
Technically, on short term charts Nifty is on the verge of completing an
inverse H&S pattern. A close above 8010 level in next couple of trading
sessions could take it to test 200EMA (8180-8200 range) or even a little
further. However a failure to close above 8010 this week, will annul the
H&S formation.
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