Thought for the day
"The production of
too many useful things results in too many useless people."
— Karl Marx (German, 1818-1883)
Word for the day
Insouciant (adj)
Free from concern,
worry, or anxiety; carefree; nonchalant.
(Source: Dictionary.com)
Malice towards none
"Intolerance" drama of 2015-16 is no different
from the "Policy Paralysis" drama of 2012-14.
The actors though have reversed their roles, with villains
of yesteryears playing the protagonist today and vice versa.
First random thought this morning
There is increasing evidence suggesting that Japan is heading the
Japan way. The excesses of last two decades might take an equal amount of time
to get absorbed and adjusted. The rest of the world though might move on in
couple of years. There is no point worrying too much about China. We should
rather look for opportunities.
Nifty:
Collapse prevented, trend reversal yet far away
Nifty successfully tested its midterm support level of 7200
(recording a low of 7241) last week and closed above its significant resistance
level of 7560 on monthly charts. On weekly charts also Nifty is forming a
strong bottom. A close above 7610 this week will confirm even a short term
bottom in 7350-7440 range. On Daily charts though Nifty appears little hot and
may need some cooling down.
1. With this Nifty has
made a firm bottom in 7190-7240 range on medium term charts. Any fall below
7350 on intra month basis in next 3months may be a good buying opportunity for
investors with 3-5yr horizon.
2. Market may witness rise
in intraday volatility in the market. If not accompanied with material rise in
implied volatility, traders with 3-6months horizon may use such intraday falls
as buying opportunities.
3. Short Bank Nifty - Long
Nifty trade could be close to maturity. About 1% further outperformance of
Nifty may provide opportunity to short term traders to initiate a Long Bank
Nifty - Short Nifty pair trade.
4. Short trade might be
avoided for this week. Short position, if any, may be held with strict stop
loss of 7610 Nifty level on closing basis.
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