Markets not giving any signal

Bulls are not firm on buying and Bears are not clear on short. Even thou markets shoot up in the last few sessions, it is not giving a clear signal, as tomorrow is holiday, we didn’t took any positions. We will see how markets will open on Wednesday.  Infy added a high weightage to todays market.

Weaken in Oil markets, Nifty don’t care

After opec meeting closed without any consensus, Oil fell in the world markets, Japan earthquake also has impact on its index, it fell sharply. Inspite of global issues, nifty shown stable open, and looking forward to reach the 50% retracement level from the current low. Infy results will add more weightage to the nifty. Infy performance was outstanding in the last quarter. TCS results expected today and will be inline with Infy results. Overall nifty index looks more bullish. We took a position on Nifty Index

NSEFO NIFTY 28Apr2016 B  18/04/2016 10:27:50 FullyExecuted 7893.00

 

Truncated Week

Markets zooming like anything. Up, up and up.  How long it can continue, no one can guess. Nifty almost touched 200 DMA. Traders should be very careful here. After Nifty reaching its highest peak, this is the third attempt to cross 200 DMA. This is the point make or break will happen. The truncated week started off well. Two weeks to expiry of current series. Fibonacci done 38.2%. Traders to wait and watch for a while on where it turns. If the same strength shown till expiry, then no doubt, in saying we are done with a very nasty downtrend.

Some analysts say, it is just gimmick, and it will turn down now, some says, we are at the start of bull market. It is hard for a trader on what to believe.

Bollinger Bands Analysis

Bollinger Bands was created in early 1980s by John Bollinger who is well known in trading circles for his analytical skills. He has his own company called Bollinger Capital Management Inc.

We all know that a stock price is always volatile. However, sometimes it is more volatile and sometimes less volatile due to several reasons. Usually, when the price is highly volatile, it is the time when there is high change in prices.

Bollinger bands helps in providing relative definition of high and low from the average trend. Basically, we will have three bands in Bollinger bands. The middle band is the trend that is captured by simply moving average. This middle band serves as a base for upper band and lower band.

The distance between “middle band and Upper band” or “middle band and lower band” are determined by the volatility using standard deviations.

So it can be now interpreted as the more the volatile the price is, the higher are the chances that the price will touch the upper band or lower band.

Let us now use Candlesticks in some Indian stock, ONGC and use the bollinger bands as an overlay indicator.

 

ongc

 

There are some interesting patterns that you can get from this bollinger bands. Whenever a candle crosses the upper band, it shows a reversal trend. Same applies to the lower band. Whenever the candle cross the lower band, it shows a reversal trend.

Balance of trade between India and China

India and China are two large Asian giants in terms of trade and commerce. In terms of population both these countries together constitute two-third of world population. That’s more than half of world’s consumers.

By 2015, the target of bilateral trade between two nations is set to $100 billion. Currently, it is nearly $75 billion a year. However the balance of trade is not in favour of India.

This visit is probably going to solve this negative balance of trade as China is likely to allow trade in the areas of telecom and IT sectors which are the core strengths of India.

Chinese Premier Li Kequing brought with him a large delegate of top business leaders from China who are currently have meetings in Mumbai – Indian business capital.

Chinese Premier Visits India

Chinese Premier has landed in India. Even while there are tensions between India and China on the borderline, this visit is going to be beyond that.

Indo-Chinese trade relation is currently valued at $75 billion. This has come a long way when the trade value was about $11 billion around 10 years ago.

It is expected that by 2015, Indo Chinese trade relations shall hit $100 billion. Now that’s big numbers.

This week danapredict will keep a watch on how the Chinese Premier’s visit will affect Indian markets.

Some of the sectors to watch will manufacturing, automobile and electronics.

We will be posting our analysis on this so keep visiting this section again.