NiftyforAll: Weekly Review - 20th November

Sunday, November 19, 2017

Weekly Review - 20th November - 2017

Dear All,

Here are the seven most common errors traders make in a bull market.

They wait for a correction to get long that never happens. So they end up missing a big part of the up trend.
They do not get long with a big enough position size or enough leverage so they end up underperforming the market.
They do not buy the small dips when they get a chance.
Perma bears do not believe in the bullish move higher so they sell short losing money in a market where it should be made easily by being long.
Some fundamentalists think the market is too expensive so they stay in cash missing a strong up trend as they wait for buying opportunities at better values.
When the dip they were waiting for finally happens they are too scared to buy it and they then begin to fear that the market will crash.
Instead of making money too many get obsessed with calling a market crash because they believe the market prices are too damn high.
The best strategy for a bull market is to not fight it but instead sit back and enjoy the ride.

>>> Key Events :- <<<

After Moody's, other rating agencies' move will be watched

India's sovereign credit rating upgrade by Moody’s to 'Baa2' from 'Baa3' for first time since 2004 and change in its outlook on the rating to stable from positive, citing continued progress in economic and institutional reforms on Friday cheered the markets.Now the market will watch that the move of other rating agencies.
Currently Standard and Poor's has a BBB- rating on India since 2007 and stable outlook. It had upgraded India's sovereign rating to stable from negative in 2014, especially after Modi government came in power.Fitch has kept its BBB- rating unchanged for 11 years on India, and retained stable outlook since 2013.BBB- is one notch above Junk.

Macro Data :-

Consumer price index for rural and farm labourers for October will be released on November 20. Crude, refinery output for October and Mobile subscriber data for October will be announced during November 20-24. Foreign exchange reserves for the week ended November 17 and bank loan growth & deposits growth for the week ended November 10 will be announced on Friday.

FIIs & DIIs flow and F&O Data :=

Foreign institutional investors bought nearly Rs 6,000 crore worth of shares and DIIs purchased Rs 3,451 crore worth of equities in the week gone by, due to stable September quarter earnings and Moody's India rating upgrade.

On Friday, maximum Call open interest (OI) of 59.98 lakh contracts was seen at strike price 10,500, which will act as a crucial resistance level for the index in the November series, followed by 10,400, which now holds 51.68 lakh contracts in open interest, and 10,600, which has accumulated 42.81 lakh contracts in OI.

Maximum Put OI of 48.77 lakh contracts was seen at strike price 10,000 which will act as a crucial base for the index in November series, followed by 10,200, which has accumulated 47.69 lakh contracts in open interest, and 10,300, which now holds 46.23 lakh contracts in open interest.

Global Cues :-

Japanese trade balance data (imports and exports) will be announced on Monday. US existing home sales data will be released on Tuesday while US durable goods orders, US unemployment claims, US crude oil inventories and US FOMC meeting minutes will be announced on Wednesday.

Europe's Manufacturing and Services PMI, and ECB Monetary Policy Meeting Minutes will be unveiled on Thursday.Japan's Manufacturing PMI, and US Manufacturing and Services PMI data will be released on Friday.US and Japanese markets will remain shut on Thursday for Thanksgiving Day.

>>> Nifty Daily Chart <<<

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

Above 10340 - 10400 More rally and New High Possible.

>>> Nifty Hourly Chart <<<

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

Possible double top or Resistance 10340 must be crossed again for a fresh rally. Key Support @ 10260 and 10240.

>>> Bank Nifty Daily Chart <<<

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

Above 25925 - More Rally Again.

>>> Bank Nifty Hourly Chart <<<

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

Support @ 25640 - 25580 - must hold. Resistance 25925 if breaks again may trigger next round of rally.

>>> Nifty MidCap50 - Daily Chart <<<

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

MidCap Index mainly contains Financials and Infra Stocks. After Moody's Upgrade and Govt. Commitment to Help PSU Banks - Lifting the Midcap sentiments. 5120,5105 and 5090 to give support. Above 5175 - Fresh Rally Possible.

>>> CNXIT - Daily Chart <<<

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

A new legislation in the United States—which proposes to increase minimum wages, paid to foreign tech workers employed in the country on H1B visas, from $60,000 to $90,000—has set off alarm bells in India with the National Association of Software and Services Companies (NASSCOM), saying that the proposed law is “arbitrarily targeting” Indian companies which took up only a small portion of these visas last year.

Major Indian IT companies paid project managers between $85,000 and $130,000 in the US last year — with salaries varying between US states — while technology leads were paid between $65,000 and $100,000, and systems engineers around $ 65,000, according to data available online.

Above news doesn't sounds good for Indian IT Companies. Above chart suggest if breaks the support - Possible sell off in all IT companies.

>>> CNXPharma - Hourly Chart <<<