Thought for the day
"Nobody owes anybody a living, but
everybody is entitled to a chance."
— Jack Dempsey
(American, 1895-1983)
Word for the day
Tohubohu (n)
Chaos; disorder; confusion.
Malice towards none
It's a season of "Exits" everywhere.
Someone please show the "EXIT" door to those
Indians who are celebrating the "No Entry" for India in NSG.
First random thought this morning
Referendums are usually conducted to find a definite binary
answer, yes or no without any conditionality attached, to lingering debate.
A referendum aims to solve a problem through democratic process.
The answer provided by it may not be to the liking of all, but it does settle
the long drawn dispute.
UK referendum on membership of EU (popularly referred as Brexit)
has raised many more questions, and answered none. It takes us nowhere.
In line with the global markets, Indian markets also witnessed
rise in volatility last week. Volumes are rose towards the end of the week.
The momentum that is necessary for the market to make a decisive
directional move has certainly started to build in the market. However, as yet
it is not strong enough to actually lead the market in any direction.
Last week, two events, RBI governor's decision to not to seek a
second term and UK referendum results, caused huge intraday volatility and
massive rise in volumes, correcting the short term indicators from extreme
overbought conditions. The indicators are however still not close to
"fearless buy" levels.
It is therefore likely that we may continue to see higher intraday
volatility and exit of weaker hands this week also. The derivative expiry this
Thursday shall also add to the tentativeness of the trade.
Nifty may continue to oscillate in larger 7930-8330 range for now
with a strong support base in 7860-7930 range and stiff resistance in 8280-8330
range. For Bank Nifty range could be even larger at 16760-18080.
7730 for Nifty and 16300 for Bank Nifty are the level below which one could consider building leveraged positions with one year perspective.
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