Saturday, November 05, 2016

Weekly Review - 07th Nov, 2016

Dear All,

>>> Trump Vs Clinton <<<

US accounts for 23 per cent of the world’s GDP and 37 per cent of the global financial stocks. Any adverse policy initiative by the new President in the financial powerhouse of the world can be the real big worry for markets across the globe.

US stock markets, too, are trading at their 100-day lows. Foreign portfolio investors (FPIs) sold shares worth around Rs 5,000 crore in October while domestic institutional investors (DIIs) bought shares worth Rs 8,000 crore

Wall Street's long-running view that Hillary Clinton would easily become the next president has been replaced by a new fear that Donald Trump could win, and it probably won't be a pretty picture for stocks if he does.

The market's nervousness picked up after the FBI last Friday revealed a new investigation into Clinton's email server, this time involving her longtime aide Huma Abedin and her husband Anthony Weiner, who is under federal investigation in a different matter.

Investors are increasing their hedges against Donald Trump pulling off a stunning upset on Nov. 8 and upending assumptions that the US election would result in more of the same, a Democrat in the White House kept in check by Republicans in Congress

The recent moves reflect worries that investors aren’t sure whether to believe reassurances from analysts including Morgan Stanley (Clinton “still favored”) and Citigroup Inc. (toss-up “overstates” Trump’s odds). Over the longer term, both candidates want to increase spending and cut taxes which would be bullish for stocks and bearish for fixed income.

Trump Wins: “Valuations of US equities are quite high, and a Trump victory will trigger a massive selloff,” CMC’s Yang said. Many would consider that a classic “ black swan event,” she added, so the reaction would be “much more severe” than Brexit, which caused the S&P 500 Index to fall 5.3 per cent in two days as benchmarks in Europe and elsewhere lost even more. Investors seeking haven in the yen would be “a negative for Japanese exporters,”

Clinton Wins: “The market has already priced in a Clinton victory,” said Margaret Yang, a CMC Markets analyst in Singapore. “Any upside will be limited if she wins.” Barclays Plc said in a report this week that the S&P 500 Index could gain as much as 3 per cent after a Clinton triumph.

Under Clinton, pharmaceutical and biotech stocks “could be hit by renewed pressure to curb price increases on drugs,” BlackRock Inc. researchers said in a report, noting her complaints about rising costs. Citigroup Inc. cut its rating on the European health-care industry to underweight in September, citing US election risks.

Fox News, in its latest poll yesterday, said that Trump (43 per cent) was trailing behind Clinton (45 per cent) by two percentage points.

>>> Nifty Daily Chart <<<

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

IHS - formation on Daily Chart. If Price holds the support as shown on above chart, Expect Super Bulls Rally Soon.

>>> Nifty Hourly Chart <<<

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Price corrected as WXY and may take a support @ 8375 for a reversal rally any time.

>>> Bank Nifty Daily Chart <<<

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Price if holds 100DMA - Expect a bounce, RSI must help the Bulls to add strength.

>>> Bank Nifty Hourly Chart <<<

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Base line on above hourly chart looks very important - if breaks then H&S comes into existence which may trigger a heavy sell off. On the Contrary if Price holds the base line - Wave B gets completed and Wave C may start for a good Rally.

>>> CEAT Ltd - Booked Profit Rs.28000/- <<<

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Have Booked Rs.28000/- and closed Ceat Ltd.

>>> CEAT Ltd - Entered on Friday, Hit SL & Re-Entered Again <<<

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Holding Long and if Price moves above the MA's may give a momentum.

>>> Axis Bank - Holding Long <<<

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We are Long and Holding for more gain on Axis Bank. Price completed its down move as 1-5 waves and ready for a bounce.

>>> ITC - Posted on 03rd Nov, 2016 <<<

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Wrote on 03rd Nov - Price waiting for a Break out Rally. See what happened.

>>> ITC - Booked Rs.43200 Profit <<<

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As Expected Price made a Gap up & Break out Rally and we Booked our Long with a Excellent Profit.

>>> Performance till 04th Nov, 2016 <<<

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

Above performance is not a Promise or guarantee for the given Profits or Loss.Performance given based on 1 lot at a time and clients Profit differ as per the margin availability and Number of Lots taken by them. We may or may not re-enter the Calls given here hit Stop Loss, as per market movement. The charts given above are just for educational purpose only and we don't recommend any Entry / Buy or Exit / Sell. Reader must taken their own decision or consult their qualified Analyst before making any decision