The most terrifying period of the last year started from the month of Sep 2008.Global markets tumbled down like a dead pin, resulting crash in the equity markets. Indian markets too faced the heat. The major indices started falling the most in the month of Sep, after the crash in the month of Jan 2008. This year too was expected to feel some pressure too. But the Indian markets outperformed the other global markets. Markets continued to surge on back of inflow from the international funds. FII remained net buyers for the month.
Liquidity crunch could not find its way in the Indian markets. Money kept on pouring in the Indian markets. All the smart money is pouring to the emerging markets. Two of the Govt owned companies too also made their debut in the Indian stock markets. Companies like NHPC and OIL India raised nearly Rs.338bn ($7bn). NHPC listed above its issue price. But slipped below its issue price within days. After the NHPC’s lackluster listing, OIL India took the markets to give a great surprise by listing with premium of 10% over its issue price of Rs 1,050/-. OIL India closed at Rs.1168 on Thursday. FII mopped up close to $12bn. The markets have taken many traders by surprise as the rally has been accompanied by lower volumes. Retail participation was less.
Nifty crossed the major resistance level of 4800. Nifty crossed the 61.8% retracement levels. Nifty has broken out the ascending triangle formation which indicated the bullish pattern in the markets. High liquidity inflow in the markets helped many Indian companies to raise money. RIL Ind, JP Associates & Suzlon raised money via selling their treasury stocks and promoters stock. These are not the only companies who have taken advantage of a surge in the equity markets. Realty companies have also lined up too raise nearly Rs.14,000 Cr via IPO push. Real Estate companies like, Lodha Developers, Sahara Prime, Emaar MGF, BPTP, Kumar Developers, Sriram properties, Oberoi Const & DB realty have either filled the DRHP with SEBI or planning to file.
These were all the good news, but someone should keep track of the PE levels on which the Indian markets are trading at. Major indices have almost doubled up from the lows that were made in the year 2008. Currently, the Nifty us trading at a PE of 23 times. When the Indices peaked in the year 2008, the PE was nearly 28 times. Looking at the past experience, we have seen that the markets had a healthy correction when the PE is above 20. Inflation too turned positive. Inflation will too be a major point of discussion in the near future.
There is still a mixed view about the revival of the US economy. Many thinks that the US economy is at the lower end of its downtrend while some thinks that there is no revival in the US economy and its on the much more bigger economic crisis ahead. Currently the prime lending rate at nearly 0%. The major problem will be when the Fed starts increasing the rates.
One of the shortest weeks in the Indian trading calendars had started with a Bang. For just only 3 days in the weeks for trading and the following long weekend ahead, most of traders did not wish to take much position at hand, resulting in minute correction in the market. On the first day of the month of Oct, markets closed marginally down in red. But the week on week performance was pretty good. Nifty & Sensex both closed up 2.5% higher than the last week close. Smallcap Index closed higher by 2.1%. Midcap Index closed 1.5% higher. The major contributors in the current weeks rally were the Banking stocks. Bank Index surged by almost 5.4%. Axis bank & ICICI bank were up 10.5%, while SBI closed 3% higher. TCS surged 7.3% after bagging some prestigious orders. Wipro was up 7.2% and Infosys up 4.4%. Over all IT index was up by 4.6%. Capital Goods and Metals surged nearly 2%. Midcap stocks like Chemplast closed higher by 25%. Shree Ashtavinayak after having some blocks in the counter surged 21%. ICICI sold its holding in 3I Infotech and the stock zoomed 17%. Fame after reporting the block deal in the last week continued to be locked in the upper circuit and surged almost 16% again in the current week. India Bulls Securities after raising money from the market surged 13% while Parsvnath was up 17%.
Markets opened up higher after the long week end. Bulls were back in action. FII again poured aggressively in the Indian markets. On the 1st day of the week i.e Tuesday, Nifty closed above its 5000 levels after facing resistance at 5017 levels as mentioned in my last article also and on my blog (www.technicalsvishaldangaich.blogspot.com) also. But the same was broken on the next day. Markets opened with a gap and continued to rise. High of 5087 was made in Nifty. On Wednesday, Nifty closed at 5083 levels. FII remained net buyers to the tune of Rs.1, 000 Cr. Being the last trading day of the week, traders did not wish to take too much position in the markets. Markets remained volatile for most of the day. Nifty closed down marginally by 8 points. Nifty made an intraday high of 5110 levels. As mentioned in my last blog that the Nifty will face resistance at 5117 levels. The Maximum level the Nifty can touch is 5167. Trading above that is very difficult. RSI is also trading in the overbought zone.
Nifty will face resistance at 5117-5137-5167 levels.
FII were net buyers for the week. FII were buyer to the tune of Rs .1700 Cr and DII’s too bought stocks worth Rs.570 Cr.
Liquidity crunch could not find its way in the Indian markets. Money kept on pouring in the Indian markets. All the smart money is pouring to the emerging markets. Two of the Govt owned companies too also made their debut in the Indian stock markets. Companies like NHPC and OIL India raised nearly Rs.338bn ($7bn). NHPC listed above its issue price. But slipped below its issue price within days. After the NHPC’s lackluster listing, OIL India took the markets to give a great surprise by listing with premium of 10% over its issue price of Rs 1,050/-. OIL India closed at Rs.1168 on Thursday. FII mopped up close to $12bn. The markets have taken many traders by surprise as the rally has been accompanied by lower volumes. Retail participation was less.
Nifty crossed the major resistance level of 4800. Nifty crossed the 61.8% retracement levels. Nifty has broken out the ascending triangle formation which indicated the bullish pattern in the markets. High liquidity inflow in the markets helped many Indian companies to raise money. RIL Ind, JP Associates & Suzlon raised money via selling their treasury stocks and promoters stock. These are not the only companies who have taken advantage of a surge in the equity markets. Realty companies have also lined up too raise nearly Rs.14,000 Cr via IPO push. Real Estate companies like, Lodha Developers, Sahara Prime, Emaar MGF, BPTP, Kumar Developers, Sriram properties, Oberoi Const & DB realty have either filled the DRHP with SEBI or planning to file.
These were all the good news, but someone should keep track of the PE levels on which the Indian markets are trading at. Major indices have almost doubled up from the lows that were made in the year 2008. Currently, the Nifty us trading at a PE of 23 times. When the Indices peaked in the year 2008, the PE was nearly 28 times. Looking at the past experience, we have seen that the markets had a healthy correction when the PE is above 20. Inflation too turned positive. Inflation will too be a major point of discussion in the near future.
There is still a mixed view about the revival of the US economy. Many thinks that the US economy is at the lower end of its downtrend while some thinks that there is no revival in the US economy and its on the much more bigger economic crisis ahead. Currently the prime lending rate at nearly 0%. The major problem will be when the Fed starts increasing the rates.
One of the shortest weeks in the Indian trading calendars had started with a Bang. For just only 3 days in the weeks for trading and the following long weekend ahead, most of traders did not wish to take much position at hand, resulting in minute correction in the market. On the first day of the month of Oct, markets closed marginally down in red. But the week on week performance was pretty good. Nifty & Sensex both closed up 2.5% higher than the last week close. Smallcap Index closed higher by 2.1%. Midcap Index closed 1.5% higher. The major contributors in the current weeks rally were the Banking stocks. Bank Index surged by almost 5.4%. Axis bank & ICICI bank were up 10.5%, while SBI closed 3% higher. TCS surged 7.3% after bagging some prestigious orders. Wipro was up 7.2% and Infosys up 4.4%. Over all IT index was up by 4.6%. Capital Goods and Metals surged nearly 2%. Midcap stocks like Chemplast closed higher by 25%. Shree Ashtavinayak after having some blocks in the counter surged 21%. ICICI sold its holding in 3I Infotech and the stock zoomed 17%. Fame after reporting the block deal in the last week continued to be locked in the upper circuit and surged almost 16% again in the current week. India Bulls Securities after raising money from the market surged 13% while Parsvnath was up 17%.
Markets opened up higher after the long week end. Bulls were back in action. FII again poured aggressively in the Indian markets. On the 1st day of the week i.e Tuesday, Nifty closed above its 5000 levels after facing resistance at 5017 levels as mentioned in my last article also and on my blog (www.technicalsvishaldangaich.blogspot.com) also. But the same was broken on the next day. Markets opened with a gap and continued to rise. High of 5087 was made in Nifty. On Wednesday, Nifty closed at 5083 levels. FII remained net buyers to the tune of Rs.1, 000 Cr. Being the last trading day of the week, traders did not wish to take too much position in the markets. Markets remained volatile for most of the day. Nifty closed down marginally by 8 points. Nifty made an intraday high of 5110 levels. As mentioned in my last blog that the Nifty will face resistance at 5117 levels. The Maximum level the Nifty can touch is 5167. Trading above that is very difficult. RSI is also trading in the overbought zone.
Nifty will face resistance at 5117-5137-5167 levels.
FII were net buyers for the week. FII were buyer to the tune of Rs .1700 Cr and DII’s too bought stocks worth Rs.570 Cr.
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