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.




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.

Weekend may affect important financial information market

The Fed chose to start the last monetary policy meeting on exiting the program in 2013 , so about the slow global liquidity jet landing , the most fundamental reason is better U.S. economic data. In addition to the first three quarters , including core data , including the unemployment rate has continued upturn , the recent series of data than expected , it is the main reason for the Fed to make the tough decisions to promote . According to U.S. Labor Department data , in November the U.S. non-farm sector added 203,000 jobs , the unemployment rate of 7.3 percent the previous month has dropped to Bernanke before the scheduled exit node 7% ; November housing starts to 1.09 million , more than economists expected 963,000 ; third quarter U.S. non-farm sector labor productivity rose at an annual rate of 3% , the highest gain in nearly four years. As will be noted in the statement , ” to improve economic activity and labor market conditions in the broader economy ‘s potential power enhancement is consistent view of the cumulative progress made ​​towards the direction of maximum employment and employment prospects improving market conditions “and thus made ​​a” slight reduction in the size of its asset purchase program . “


Last night the important financial news this morning in the international market Glance

Last night, this morning, in the international market have important financial news: Road Index S & P to new highs; European shares rose 3.68 percent the whole week; gold on Friday rose 0.9 percent the week down 2.5%; prices rose 2.8% in the whole week; Obama said 2014 would U.S. economic breakthrough year; Yellen Federal Reserve chairman nominated by the U.S. Senate test vote; Goldman: Gold fell to $ 1,144 in 2014 will; BOJ Kuroda: depreciation of the yen is not a policy objective; Blackberry huge loss in the third quarter 44 Foxconn billion dollars will jointly push low-cost intelligent machines; Morgan Stanley to sell oil to the Russian oil trading business; Linktone intends to withdraw from the market in January next year, such as shares plunged 37.25%

[ Overseas markets ]

U.S. GDP Data & P index hit a record high positive track

U.S. stocks closed higher on Friday , with the Dow and S & P 500 index hit a record high , the Dow closed up 0.26 percent , the Nasdaq rose 1.15% , the S & P 500 index rose 0.49 percent . U.S. third quarter GDP growth rate hit the best performance in two years , boosted market sentiment.

European stock index finished the week up 3.68 percent hit the biggest weekly gain since April

U.S. third quarter GDP growth rate hit a new two-year high , further confirmed the world’s largest economy is recovering steadily judgment of the market , European stock markets were driven by a continuation of the trading day before the rally to continue to rise , European stock index closed up 0.52 Friday % cumulative increase of 3.68 percent this week , the highest since April biggest weekly gain .

[Other Market]

Gold rebounded 0.9 percent on Friday to recover $ 1,200 the week down 2.5 percent

Gold prices rebounded from a three-year low , although the main contract on Friday returned to the top of the key positions of $ 1,200 an ounce , closed at $ 1,203.70 per ounce , but the Fed announced QE decision resulted in reduction in the price of gold since Thursday June the biggest one-day drop , making gold a week since there are still 2.5 percent decline.

Friday, oil prices rose 0.3 % whole week has risen by 2.8%

The U.S. government report third-quarter GDP growth will be the final upward correction , better economic prospects improved demand for energy products is expected to help the continuation of oil a day before the increase, the main crude oil contract on Friday Course the transaction closed up 0.3 percent to $ 99.32 a barrel, oil prices also makes a week or expanded to 2.8%.

[Macro] International

Obama said 2014 would be a breakthrough year for the U.S. economy

U.S. President Barack Obama said Friday that the U.S. economy is strong into 2014, “we will have new growth and create new jobs.” He said, “about to enter the new year on the occasion, we have the beginning of this year when compared to a stronger economy.” Obama said, not on the debt ceiling and Congress to negotiate, Congress must in 2014 year agreed to raise the limit.