Sunday, September 11, 2016

Weekly Review - 12th September, 2016

Dear All,


The sentiments are bullish everywhere, although high valuation concerns are there all over the Street. Foreign portfolio investors (FPIs) have invested Rs 2,121 crore so far in September while domestic institutional investors (DIIs) have had net redemptions to the extent of Rs 110 crore, an indication that domestic investors are still not convinced about the India story.

Surprisingly only 48 lakh active clients had traded last week on any single day, which is too microscopic when seen from the country's demographic perspective. No wonder the depth in the Indian market is so shallow, which is why any concerted selling by FPIs results in a massive price erosion in stocks.

New Reserve Bank of India Governor Urjit Patel is likely to continue with the neutral stance on liquidity that the central bank adopted in April under Raghuram Rajan and this will play a key role in the transmission of rate cuts, suggest experts.

Ensuring adequate liquidity via open market operations (OMO) is clearly on top of the agenda of the new RBI governor. RBI will conduct open market operations (OMO) on Thursday to purchase government bonds to infuse about Rs 10,000 crore liquidity.

OMO stands for an open market operation, which is conducted by RBI. The central bank conducts OMO by way of sale or purchase of government securities to or from the market with an objective to adjust rupee liquidity conditions in the market on a durable basis.

If there is excess liquidity, RBI resorts to sale of securities and when liquidity conditions get tighter, RBI buys securities from the market.

Nifty Weekly chart formed a Inverted Hammer. While some experts turned cautious, others believed one should not read too much into Friday's trading pattern and the view of buy-on-dips market remains intact.

"I do not think we should read too much into this trend. It is after all just a readjustment of the weekly trends. We have managed to hold on to the gains that we built in during the week, giving up a little bit towards the end of the week. My expectation is that the weak hands are probably getting bailed out or being forced to bail out and they will be back in action next week," said CK Narayan, Founder, Chart Advise.

So more to watch on Trend - before taking a firm decision. Lets See technicals...

>>> Nifty Weekly Chart <<<

>>> Click the chart to see on full screen <<<

After many weeks - Price showing a Inverted Hammer - Possibly It may be a trend reversal also. Caution advised.

>>> Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Looks like ABC completed, and if not wrong, Expect some good correction soon.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Above hourly chart suggest - Price topped out on the expanding triangle, hope a fall is unavoidable.


>>> Bank Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

Bank Nifty - Above counts - Looks like - completed ABC upmove. But due to the complex nature of the wave - we need to still wait for some more confirmation on either side to decide any action.

>>> Bank Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Last leg of rally - tested the channel top of pitchfork. Looks like Bulls getting tiered and need to confirm the bears entry with more confirmation.

>>> SBIN - Possible Correction <<<

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We have short position on SBI, looking for a good correction.

>>> ADANIPORT - Possible Correction <<<

>>> Click the chart to see on full screen <<<

We have short position on Adani Port, Looking for a good correction.