RepleteBell Indian Equity Market Review

Indian Equity Market Review 14th November 2017

Indian equity benchmarks closed at a three-week low after accelerating inflation tempered expectations of a rate cut by the central bank next month.

The S&P BSE Sensex declined 0.3 percent to 32,941 while the NSE Nifty 50 Index lost 0.4 percent to 10,186. The market breadth was firmly skewed towards the sellers by end of trade.

Data released late Monday showed consumer prices in October rose at the fastest pace in seven months, and may accelerate further amid rebounding oil prices. The Reserve Bank of India meets next month to rule on rates.

Data released late Monday showed consumer prices in October rose at the fastest pace in seven months, and may accelerate further amid rebounding oil prices. The Reserve Bank of India meets next month to rule on rates.

Food Prices Push Wholesale Inflation Higher In October

India’s wholesale inflation rose in October on higher food prices.

Wholesale prices rose 3.59 percent during the month from a year earlier, according to a statement by the Commerce Ministry. That’s higher than the 3.01 percent median estimate of 28 economists surveyed by Bloomberg. Wholesale prices rose 2.6 percent in September.

  • Primary article prices rose 3.3 percent year-on-year.
  • Fuel, power, lighting prices rose 10.52 percent.
  • Manufactured product prices rose 2.62 percent.
  • Food article prices rose 4.3 percent.

RCom Extends Drop On Dollar Bond Default Report

Shares of the debt-laden telecom operator dropped as much as 6.58 percent after it failed to pay interest on its dollar bonds due 2020 within a grace period that ended Monday, according to a Bloomberg report quoting a person familiar with the matter.

The Anil Ambani company had missed a Nov. 6 deadline to pay interest of about $9.75 million on the notes. It missed interest payments due earlier this month on two rupee-denominated bonds.

More Pain Than Gain For Gold As Central Banks Cut Stimulus

Gold is set on a perilous path as global central banks withdraw the liquidity punch bowl that has driven stock markets to record highs.

As a world recovery gathers pace, the Federal Reserve is shrinking its balance sheet and raising interest rates, while the European Central Bank is about to begin tapering bond purchases. This scenario makes it very hard for a non-interest bearing asset like gold to do well, according to Troy Gayeski from SkyBridge Capital, which managed more than $11 billion at the end of August.

Rupee Gives Up Early Gains

The rupee went through ups and downs before trading 5 paise lower at 65.47 against the dollar today as it lost its early gains after the American currency grew in appeal.

The local currency hit 65.47 at 11:02 a.m. compared to yesterday’s closing level of 65.42 at the forex market.

Globally, the US dollar came in higher against a basket currencies late yesterday. Pound sterling fell against the dollar and the euro as investors got anxious about Theresa May’s ability to stay on as British Prime Minister and extract a favourable exit deal from the European Union.

*Source-Bloomberg

Technical Summary for 15th November 2017

Indian Equity

NIFTY is moving towards our target 10147.50 & 10089.44.

NSENIFTY is long term Bullish as the 144 days moving average of 9,792.31 is increasing. The Relative Strength Index is at 45.68 in the neutral territory. The Relative Momentum Index is at 58.89 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at 38.76, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 2.36. This value is in the oversold territory.

We have detected a Gann Swing or Pullback that is usually a bearish pattern! It should be used with other indicators.

 

Additional information:-

Tomorrow’s projected High: 10,217.30, the projected Low:10,144.85. The top 21-day Bollinger band is at: 10,446.50 while the bottom 21-day Bollinger band is at: 10,083.46.

DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

 

 

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