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Sublime’s Technical View On Market For tomorrow(08/31/2017)

Nifty opened with a gap up 63 points and traded between intraday low of 9850 to intraday high of 9909 and closed at 9884 with 84 points gain. Top Gainer   IOC VEDL HINDALCO BPCL  Top Losers    NTPC TECHM M&M LUPIN Relative Data as following: RSI= 51.37(1D chart) with a inverted hammer type candle. RSI=55.61 (1 H Chart) with downtrend  at closing time. Today’s Nifty Closing Price: 9884.40 support level =9840 Resistance level =9920 Today’s FII/DII Activities: FII Trading Activity: DII Trading Activity Note – ON daily chart nifty formed a inverted hammer type pattern but previous trend is zig zag.if an inverted hammer is formed at an uptrend then there is a chance of trend change but nifty doesn’t clear its previous direction so there is one more factor moving average and nifty closed above its 25 DEMA and 50 DEMA which is good sign for bulls but one more factor is next day is expiry of this month  so market may be very volatile for the next day and as market bounced back from 120 points so next day may lead to profit booking. on hourly charts nifty showed sign of downtrend at closing time and made an consolidation pattern at today’s high so market seems volatile for the next day and most probably expiry may be seen at level of 9830 to...
According Gold to Crude Oil Ratio Further downside expected , Best 10 Value Investment Stocks to Buy

According Gold to Crude Oil Ratio Further downside expected , Best 10 Value Investment Stocks to Buy

What is gold to crude oil ratio? It simply means that how many barrels of oil can be bought in one ounce of gold at any time. What this ratio infers is that when the current ratio is below 15.4, gold is either too cheap or oil is too expensive. When ratio is above 15.4, oil is too cheap or gold is too expensive   How to use gold to oil ratio Every time gold /oil ratio finds a new top, crude oil changes the trend from positive to negative. Every time gold/oil ratio finds a new bottom crude oil chances the trend from negative to positive.   Effect on Indian market or Indian economy  Gold/oil ratio always tries to move towards 15.4 after a high or after a bottom so to maintain the ratio either oil prices will have to move upside or gold prices will have to move downside.   Relation between nifty and ratio A scan of 22 year of data shows that nifty has a low degree of correlation (0.27) with the gold to oil ratio. But look a little closer say, at times where oil has been costly (above USD 90 a barrel) and gold has been cheep (USD 60) and gold moderate, the correlation is more than  -0.5,which is considered moderate to strong. Through 2008 when market was roiled by the financial crisis, the ratio rose with the correlation, a strong -0.6. in other words, the data suggest that in periods where certain conditions obtains, if the gold to oil ratio falls, there is strong chance that share prices will increase.   Current...
Do Investors Have a Way Out of this Chaos?

Do Investors Have a Way Out of this Chaos?

The global economy is in doldrums. There is widespread uncertainty. Earlier economic forecasts have gone for a toss. The situation we are talking about here is fueled by several factors. China is facing chaos now and then. The US Federal Reserve seems on course to gradually increase interest rates. Oil prices have slumped and global demand remains low. Back home, banks are hit with the rising NPA levels and their provisioning. Deficient monsoons have hindered economic growth. Domestic demand scenario appears to be weak. In a recent report on future economic challenges, the International Monetary Fund (IMF) said world growth had slowed and could be derailed by market turbulence, the oil price crash and geopolitical conflicts. It warned that the world economy is highly vulnerable and new mechanisms are required to protect the most vulnerable countries. This makes us think – Where does Indian stand and how vulnerable is it to global headwinds? The turbulence in the global financial markets and weak global growth have made India’s economic growth prospects vulnerable. The ongoing sell-off in the Indian stock markets is a reflection of it. In order to come out of the current pessimism and uncertainty, India does need growth-revival policies. We hope our Finance Minister Arun Jaitley pulls out some reform-rabbits from his hat in the upcoming Union Budget 2016-17. In order to reduce the fiscal deficit, the government needs to shut down loss-making public sector enterprises. It should sell the assets these public sector enterprises have been sitting on for many years now. We also need a stronger effort to revive infrastructure growth. Banks need to strengthen their...
Indian Indices Open Strong

Indian Indices Open Strong

Major Asian stock markets have opened the day on a positive note. The stock markets in Japan and Singapore are trading higher by 1.1% and 1.2% respectively. Major indices in Europe and US ended their previous session on an encouraging note too. The benchmark indices in US and UK ended the day higher by 1.3% and 2.4% respectively. The rupee is trading at 68.56 per US$. Indian stock markets have opened the day on a firm note. The BSE Sensex is trading higher by 222 points (up 1%) and NSE Nifty is trading higher by 72 points (up 1.1%). Both BSE Mid Cap and BSE Small Cap are trading higher by 1% and 0.7% respectively. Major sectoral indices have opened the day in green with stocks from capital goods and pharmaceutical sectors witnessing maximum buying interest. As reported in a leading financial daily, Reserve Bank of India (RBI) announced certain changes to thestrategic debt restructuring scheme (SDR). According to the scheme banks were allowed to convert loans into majority equity shareholding (atleast 51%) in case of a default by the borrower. Once loans were converted into equity, banks had to dilute the majority shareholding and find a new buyer within a period of 18 months. However, it was challenging for the banks to dilute such a big portion of shareholding within the specified time of 18 months. Considering this, RBI revised the guidelines and stated that banks can upgrade an asset to the standard asset category if they divest at least 26% of the stake to the new promoter within the specified period of 18 months. The balance equity...
Indian Markets Trade in the Green

Indian Markets Trade in the Green

After opening the day on a positive note, the Indian Markets have continued to trade in the green. Sectoral indices are trading on a mixed note with stocks from the energy, capital goods and consumer durablessectors leading the gains. Telecom stocks are trading in the red. The BSE Sensex is trading up 72 points (up 0.3%) and the NSE Nifty is trading up 19 points (up 0.3%). TheBSE Mid Cap index is trading down by 0.1% while the BSE Small Cap index is trading down 0.7%. The rupee is trading at 68.77 to the US$. Most of the PSU banking stocks are trading on a negative note with Indian Bank and Bank of Barodaleading the losses. As per a leading financial daily, public sector lender IDBI Bank has priced its equity shares to be issued to Life Insurance Corporation of India (LIC) at Rs 53.44 per share. The size of the equity on offer is Rs 15 billion. This comes as the bank plans to issue 280.6 million shares of Rs 10 each at a premium of Rs 43.44 a share to LIC on a preferential basis. The bank has stated that the above price has been fixed according to the Securities and Exchange Board of India’s (SEBI) formula. Further, the bank will be seeking shareholders’ nod for the offering at a meeting scheduled in March 2016. After the issue, LIC would hold 19.18% stake in IDBI Bank, up from 7.24%. The Indian government’s shareholding would decline to 69.84% from the present level of 80.16%. It should be noted that the bank is raising money through fresh issue of...
Banking Stocks Lead the Gains

Banking Stocks Lead the Gains

After opening the day in the green, the Indian indices have continued to trade on a positive note during the post-noon trading session. Sectoral indices are trading on a mixed note with stocks from the banking and metal sectors leading the gains. Telecom stocks are however trading in the red. The BSE Sensex is trading up 179 points (up 0.8%) and the NSE Nifty is trading up 49 points (up 0.7%). TheBSE Mid Cap index is trading up 0.2% while the BSE Small Cap index is trading down by 0.5%. Gold prices, per 10 grams, are trading at Rs 29,636 levels. Silver price, per kilogram is trading at Rs 36,987 levels. Crude oil is trading at Rs 2,293 per barrel. The rupee is trading at 68.72 to the US$. Stocks in the power space are trading on a mixed note with Torrent Power and Neyveli Lignite leading the losses. The Reserve Bank of India (RBI) has clarified that bonds issued under discom package Ujwal Discom Assurance Yojana (UDAY) will not hit the markets and would be private placements. Further, it was stated that the RBI is open to give further relaxations on these bonds, such as allowing them to be held till maturity. This will mean that the investors do not have to incur market-to-market losses every quarter in valuing them in their books. The announcement came in as a relief for the bond markets that have been seeing bond yields tightening every passing day. The bonds, to be issued by the electricity distribution companies (discoms) as non-SLR grade have been a major concern for the bond market. It should...
Positive Finish to the Week

Positive Finish to the Week

Indian indices began the day’s proceedings on a positive note and continued this trend throughout the day ahead of the Union Budget which is to be announced next week. At the closing bell, BSE-Sensex finished higher by 178 points, while NSE- Nifty closed higher by 59 points. The S&P BSE Mid cap also finished higher by 0.3%, while the S&P Small Cap continued its weak trend and finished lower by 0.5%. Gains were largely seen in metal and banking stocks. Asian markets closed mostly higher in today’s trade, with Hong Kong leading the gains. The Hang Seng is up 2.52%, while China’s Shanghai Composite is up 0.95% and Japan’s Nikkei 225 is up 0.30%. European markets are trading sharply higher today with shares in Germany leading the region. The DAX is up 2.40%, while France’s CAC 40 is up 2.05% and London’s FTSE 100 is up 1.26%. The rupee was trading at Rs 68.78 against the US$ at the time of writing. Shares of Dabur India finished on an encouraging note (up 0.8%) after it was reported that the company has signed a licence pact with the government to produce two new ayurvedic drugs, Ayush – 64 for treatment of malaria and Ayush- 82 for management of diabetes. The company is also planning to commercially produce the two drugs within six months and they will be available in various formats. Reportedly, the company has also signed a memorandum of understanding with the Central Council of Research in Ayurvedic Sciences (CCRAS), an apex research body under the Ministry of AYUSH, for collaboration and cooperation in the pharmaceutical R&D for different...
The good, bad & ugly: Sectoral impact of GST & what brokerages recommend

The good, bad & ugly: Sectoral impact of GST & what brokerages recommend

(GST) council are a mixed bag for India Inc, some segments such as adhesives, coal and lignite, hair oil, luxury cars, soaps, two-wheelers, and toothpaste are expected to benefit from lower duties. On the other hand, manufacturers of chocolates, paints, sanitary ware and white goods will be adversely affected due to higher taxes. The ET Intelligence Group analyses sector-wise impact of the GST implementation would benefi t supply chain efficiency for FMCG companies with the consolidation of storage hubs. Simultaneously, we believe demand shift from un-branded to branded products on the back of level-playing fi eld against unorganised players would also benefi t the largest FMCG company in the country. ICICI SECURITIES HUL: GST implementation would benefi t supply chain efficiency for FMCG companies with the consolidation of storage hubs. Simultaneously, we believe demand shift from un-branded to branded products on the back of level-playing fi eld against unorganised players would also benefi t the largest FMCG company in the country. ITC: Indirect tax on cigarettes would be largely tax neutral with GST rate at 28% against...
Sublime’s Technical View On Market For – (27/06/2017)

Sublime’s Technical View On Market For – (27/06/2017)

Market is above the 30 day moving average on daily chart so it shows that market is not in a bearish trend yet and it is just profit booking by retailers. Relative Data as following: RSI= 51.03 (1D chart) with a long bearish candle. RSI= 34.78(1 H Chart) with a bullish engulfing pattern at 12.15 pm and after that a doji and closing also with doji. Today’s Nifty Closing Price: 9573.80 support level =9512 Resistance level =9757 Market is corrected to take a jump as seen in july expiry and which can be  clearly seen in FII data. Today’s FII/DII Activities: FII Trading Activity: 269.95(Buying) DII Trading Activity: -45.78(Selling) Note – Market is showing same behavior as we have seen in last expiry so what is going on market is simply profit booking and FII’s are very bullish on indian market so every dip in market is a good opportunity to take an entry because we all know fundamentals are very strong for indian market and indian economy as today again indian government choosen 30 more cities to develop them as smart cities which is a good sign for more foreign investment by more projects that can generate more jobs and by this india can make more taxpayers and yeah GST is a major tax reform for indian taxation system. so be ready for the next bull run(upto atleast 9850) by the end of this...
Sublime’s Technical View On Market For tomorrow(22/06/2017)

Sublime’s Technical View On Market For tomorrow(22/06/2017)

Sublime’s Technical View On Market For tomorrow(22/06/2017) Tomorrow market is in Uptrend as nifty is closed above both the short term moving average (15 days and 30 days) and in daily chart a hammered type formation is there which is a trend reversal pattern Relative Data as following: RSI= 59.14(1D chart) with a hammer type pattern formation. RSI= 52.67(1 H Chart) with a bullish engulfing pattern at 11.15 am and after that market is in uptrend. Today’s Nifty Closing Price: 9633.60 support level =9620 Resistance level =9670 if market will cross its resistance level then it is ready to touch new all time high Today’s FII/DII Activities: FII Trading Activity: -153(Selling) DII Trading Activity: -41(Selling) Note – Today asian markets traded down because of  dip in oil prices and a negative sentiments in global market. After 11.15 am indian market recovers and leaves positive node for next day. Market will touch new high in this month because of GST implementation by next month and market is corrected enough also to take a...