Skip to main content




The Indian markets ended the Thursday’s trade slightly in red, as traders opted to book some profit with key indices touching the all time highs. Today, the start is likely to be flat to mildly in green. Traders will be taking support some encouragement with the government’s statement that it has approved foreign direct investment (FDI) proposals worth Rs 24.56 crore, including one from Sterling Commerce Solutions India. Stocks related to textile sector will remain buzzing with exporters’ body FIEO stating huge business opportunities exist in the UAE for domestic textile and apparel sector. Information Technology stocks will continue to remain in focus with Nasscom’s president R Chandrashekhar’s statement that India’s IT industry could see an upturn next year as the process of investments in technology, particularly in the United States, has started to gather momentum. Aviation stocks will get some support with report that the government is developing a comprehensive 25-year master plan for airports in the country to keep pace with air traffic growth. The Centre for Asia Pacific Aviation (CAPA) estimated that India will need an investment of upto $45 billion to create an additional capacity of handling 500-600 million passengers at its airports by 2030. Meanwhile, there will be lots of earnings announcements too will keep the markets in action.
The US markets ended on mostly in green on Thursday after the Labor Department released a report showing an unexpected drop in initial jobless claims in the week ended October 28th. Asian markets have made a mixed start on Friday, as investors digested the release of House Republicans' tax-reform plan and President Trump's nomination of Jerome Powell, Federal Reserve Governor, to be the next head of the central bank.
Back home, Indian equity benchmarks ended the volatile session of trade with marginal losses on Thursday, as traders opted to book some profit with key indices touching the all time high, amid weak global cues. Markets traded cautiously throughout the day, as traders remained on sidelines awaiting the formal nomination of the next head of the central bank. However, losses remained capped as traders took some solace with private report stating that India’s current account deficit (CAD) for this financial year is expected to be around $ 40 billion, or 1.5 per cent of GDP. CAD rose sharply to $ 14.3 billion, 2.4 per cent of GDP, at the end of first quarter of 2017-18. Report highlighted that July-September CAD is expected at about 1.6% of GDP and accordingly, CAD for the first half of this fiscal (April- September) is likely to be around 2% of GDP. Traders also took some comfort with Former Economic Affairs Secretary Shaktikanta Das’ statement that improvement in ease of doing business is extremely relevant and will promote private investment, growth and job creation. Separately, after a record jump of 30 places in the World Bank’s ease of doing business ranking, India is gearing up to leapfrog into the top 50 with around 90 specific reforms lined up for various ministries. The reforms covering seven ministries are to be implemented by May next year with a focus on reducing the number of processes and moving them online. The maximum improvements targeted are in the areas of construction permits (22) and registering property (14), areas where India still has a low rank. Investors took note that the government may nudge cash surplus central public sector enterprises (CPSEs) to invest in the proposed Rs 1.35 lakh crore bond offering to recapitalize public sector banks. Finally, the BSE Sensex lost 27.05 points or 0.08% to 33,573.22, while the CNX Nifty was down by 16.70 points or 0.16% to 10,423.80.

Comments

Post a Comment

Popular posts from this blog

The Chart Types we need a charting technique that displays this information in the most comprehensible way. If not for a good charting technique, charts can get quite complex. Each trading day has four data points’ i.e the OHLC. If we are looking at a 10 day chart, we need to visualize 40 data points (1 day x 4 data points per day). So you can imagine how complex it would be to visualize 6 months or a year’s data. As you may have guessed, the regular charts that we are generally used to – like the column chart, pie chart, area chart etc does not work for technical analysis. The only exception to this is the line chart. The regular charts don’t work mainly because they display one data point at a given point in time. However Technical Analysis requires four data points to be displayed at the same time. Below are some of the chart types: 1. Line chart 2. Bar Chart 3. Japanese Candlestick The focus of this module will be on the Japanese Candlesticks however before we get...
Post a Comment
Read more
THE NIFTY FUTURE  Basics of the Index Futures Within the Indian derivatives world, the Nifty Futures has a very special place. The ‘Nifty Futures’ is the most widely traded futures instrument, thus making it the most liquid contract in the Indian derivative markets. In fact you may be surprised to know that Nifty Futures is easily one of the top 10 index futures contracts traded in the world. Once you get comfortable with futures trading I would imagine, like many of us you too would be actively trading the Nifty Futures. For this reason, it would make sense to understand Nifty futures thoroughly. As we know the futures instrument is a derivative contract that derives its value from an underlying asset. In the context of Nifty futures, the underlying is the Index itself. Hence the Nifty Futures derives its value from the Nifty Index. This means if the value of Nifty Index goes up, then the value of Nifty futures also goes up. Likewise if the value of Nifty Index decl...
Post a Comment
Read more
The Beginner’s Guide to Technical Analysis Combining Fundamental and Technical Analysis On the left: 4H chart of EUR/USD with various technical methods applied (source: Twitter) On the right: Kandinsky horizontale (Source: Google Images) Up to this point, we’ve explored Support & Resistance, Candle Patterns, Moving Averages, Fibonacci Retracements, Oscillators, Bands, Channels and Envelopes. However, it would be too simplistic to reduce successful speculation to mere technicals. Sure, technical analysis is an easy empirical method, which is actually very useful for: Measuring market sentiment on a given asset  Timing potential entries and exits  Managing risk. However, it is rare to find a successful FX speculator that relies on technicals alone. In reality, behind successful FX speculation lies a decision making process that most likely blends technical analysis and fundamental analysis. Picture this: you are a trader for a hedge fund, ...
Post a Comment
Read more