Nifty chart: a midweek technical update (Jun 12, 2019)

Keras - self-learning NEURAL networks for
Stock market forecasting
Get it FREE

*number of participants is limited
FIIs were net buyers of equity on Mon. and Tue. (Jun 10 and 11), but were net sellers today. Their total net selling was worth Rs 7.4 Billion. DIIs were net sellers of equity on Tue., but were net buyers on Mon. and today. Their total net buying was worth Rs 2.9 Billion, as per provisional figures.

Reigniting the debate on the accuracy of India’s GDP growth numbers, the former Chief Economic Advisor, Arvind Subramanian mentioned in a research paper that analyses data on 17 different economic indicators that India’s real GDP growth was only 3.5-5.5% during FY 2012-2017.

The Prime Minister’s Economic Advisory Council has refuted the claims made by the former CEA in his research paper. However, the jobless economic growth on the ground may be confirming – rather than refuting – Mr Subramanian’s findings.

The daily bar chart pattern of Nifty had touched a new high of 12103 on Jun 3. The index corrected sharply and tested support from its rising 20 day EMA on Jun 7. It has been consolidating since then, and touched a lower top of 12000 on Jun 11.

All three EMAs are rising, and the index is trading above them in a bull market. The index should rise to a new high soon. However, the 165 points upward ‘gap’ formed on May 20 remains a concern.

Charts don’t ‘like’ unfilled gaps. Most gaps get filled sooner than later – though some gaps may never get filled. A part or complete filling of the May 20 ‘gap’ will make the chart technically ‘healthy’, enabling the index to rise higher.

Daily technical indicators are in bullish zones, but not showing any upward momentum. MACD is seeking support from its signal line in overbought zone. RSI is moving sideways above its 50% level. Slow stochastic is moving sideways above its 50% level after falling from its overbought zone

All three indicators showed negative divergences by failing to touch new highs when the index touched its lifetime high on Jun 3. Some more consolidation or correction may follow.

After touching a high of 29.90 on Jun 3, Nifty’s TTM P/E has moved down to 29.45, which is in overbought zone and much higher than its long-term average. The breadth indicator NSE TRIN (not shown) is falling inside its oversold zone, hinting at some near-term consolidation.

The debt crisis in the NBFC/HFC segment seems to be getting worse, and is having a negative spill-over effect on the banking sector. With the financial system in turmoil, how will economic growth get funded?

The consumption sector that is dependent on loans from banks/NBFCs – like automobiles, real estate – is in doldrums. It will be too much to expect the new Finance Minister to perform a miracle in her first budget and restore the economy back on the growth track.

Stay invested, but stay nimble. Book profits where available, and invest it in bank FDs to protect capital before interest rates fall further. 

news forex trading

forex no deposit bonus

Leave a Reply

Your Name (required)

Your Email (required)

Your Message

BonusMin. DepositMax. ReturnsRating
ayrex$10,000$20090%Rating Ayrex Options Review
$10,000$581%broker Rating Freestyle Review
Finmax$10,000$20090% FiNMAX Review
StockPair$20,000$585%broker Rating Falcon Finance Review
24optionUnlimited$25089%Top Binary Options Brokers Rating 24option Review

To invest with binary options you will work with an investment broker who is licensed to work in this field. Working with your broker, you will identify which asset you want to buy an option on, how much you want to invest and when the option will expire. Once the option is placed, you simply watch the trading activity on that asset to see if your prediction was accurate or not.

Binary options are one of the most popular trading choices for investors today, due in large part to their simplicity and the fact that you always know all the risks and payoffs ahead of time.

  • regulated: we promote only regulated brokers whose business models and marketing practices are checked by relevant government authorities.
  • special features: here we list all the important features that a broker offers. These are usually listed as perks offered trough various account types which bring different levels of service, depending on the minimum funds deposited
  • bonuses: almost every Top Binary Options Brokers offers these rewards that increase trading potential. Fair Binary Options also lists terms and conditions that come with the bonus money so traders always know how will these affect their trading efficiency.
  • the best binary trading platforms reviewed: we review the software that makes trading possible. There are several big providers, such as SpotOption, TechFinancials, Tradologic, MarketsPuls… Every software has some special characteristics, and not every software is suited for every trader
  • assets: Fair Binary Options review provides basic info on the amount of assets available for trading
  • customer support: we chat with the customer support to test how the broker has set up the help desk that should support traders. This is the best way to assess the service.
  • payments: we list all the payment options available by the Top Binary Options Brokers, list minimum deposit requirement
  • withdrawals: we warn traders if withdrawal requirements are too high, or if it takes a long time to get the money back.
    • Keras - self-learning NEURAL networks for
      Stock market forecasting
      Get it FREE

      *number of participants is limited

      Customer Testimonials

      Fellas what broker is legit in States ? binary options binary options broker USA?