Indian Stock Market Report -technical View & Outlook
Equity Market :
The benchmark BSE index rose 1.52 percent, or 285.30 points, to 19,016.46, closing above the 19,000 level for the first time since April 2 and gaining 4.2 percent for the week. The broader NSE index advanced 1.66 percent, or 94.40 points, to 5,783.10, marking its highest close since March 18 and gaining 4.6 percent for the week. Analysts believe the recent slump in global gold and crude prices, if sustained, should wipe out a big portion of India's current account deficit, providing more elbow-room to the central bank to lower rates for the third time this year. "Crash in bullion and crude has resulted in the revival of Indian economy and Indian stock market".
Government Bonds :
India's benchmark 10-year bond yield ended down 2 basis points (bps) at 7.78 percent after touching 7.75 percent, its lowest since July 2010, as improving trade data and falling commodity prices are seen giving the central bank more room to cut interest rates. This is the reversal of 2008 situation. In 2008 when you had a massive fall happening into equity globally and also locally, we were seeing rise in the other commodities and particularly the bullion commodities. The reasons were then obvious. Today the reasons are equally obvious that the preference to the other commodities have started coming down because the yield in those commodities have actually started coming down.
Technical View:
The Indian equity market ended almost unchanged after sliding for two previous weeks as the NSE Nifty index found strong support at around the 200 Day moving average and the 38.20% retracement level for entire rally since May 2012. We expect, the Nifty to continue with the upward momentum in the coming days. The pullback in the coming days would possibly be led by the Banking stocks in addition; a close above 5720 would further accelerate the bullish stance.
F&O View :
Shares of auto battery makers gain on expectations of better.
Margins after prices of lead, a key raw material for batteries.
Tumble near October 2012 lows.
Lead prices have fallen 11.4 percent so far this year.
As of Wednesday's close.
lead constitutes about 80 percent of battery.
Makers' input costs.
Exide Industries Ltd gain 1.2 percent.
Sensex Valuation :
Indian equities may sustain a discount to their long-term average and continue to appear cheap in the near future on that comparison. For, more than the price-to-earnings multiple of the benchmark index, it is the earnings growth which is likely to guide investor interest. Generally, buying equities when the market falls below its long-term valuations is termed as a prudent fundamental strategy, especially for investors with a long-term investment horizon.
Effect On Rupee :
The rupee gained almost a percentage point to close at 54.14 against the dollar on Tuesday on the back of stronger equity markets and rate cut hopes. The rupee gained 48 paisa on Tuesday to close at 54.14 against the dollar on the back of stronger equity market and euros gain against the American currency. The Indian unit, which had closed at 54.62 on Monday, opened at 54.65.The euros gain against the dollar and the spurt in domestic equity markets had a positive rub-off on the rupee, a chief dealer with a public sector bank said.
Government Initiatives :
For long the government has been trying to get retail investors to invest in the stock market so that the collective power of small investors could turn out to be a counterbalance to powerful institutional investors. Retail investors could also bring more stability to the market because they usually do not sell in a hurry. However, despite serious attempts by the government over the years, not many retail investors have started investing in stock markets. Surprisingly, even people at the top of the government machinery are not very willing to enter the stock market. The AMC has got its final approval from Sebi and its first fund, a diversified equity scheme without any sect oral or market-cap bias, is set to be launched within the next one month.
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For More Info About Stock Market, Trading Strategy, Stock Market Planning Visit Our site at www.capitalheight.com or please call our 24/7 Customer Care Support us at 0731 - 4295950
The benchmark BSE index rose 1.52 percent, or 285.30 points, to 19,016.46, closing above the 19,000 level for the first time since April 2 and gaining 4.2 percent for the week. The broader NSE index advanced 1.66 percent, or 94.40 points, to 5,783.10, marking its highest close since March 18 and gaining 4.6 percent for the week. Analysts believe the recent slump in global gold and crude prices, if sustained, should wipe out a big portion of India's current account deficit, providing more elbow-room to the central bank to lower rates for the third time this year. "Crash in bullion and crude has resulted in the revival of Indian economy and Indian stock market".
Government Bonds :
India's benchmark 10-year bond yield ended down 2 basis points (bps) at 7.78 percent after touching 7.75 percent, its lowest since July 2010, as improving trade data and falling commodity prices are seen giving the central bank more room to cut interest rates. This is the reversal of 2008 situation. In 2008 when you had a massive fall happening into equity globally and also locally, we were seeing rise in the other commodities and particularly the bullion commodities. The reasons were then obvious. Today the reasons are equally obvious that the preference to the other commodities have started coming down because the yield in those commodities have actually started coming down.
Technical View:
The Indian equity market ended almost unchanged after sliding for two previous weeks as the NSE Nifty index found strong support at around the 200 Day moving average and the 38.20% retracement level for entire rally since May 2012. We expect, the Nifty to continue with the upward momentum in the coming days. The pullback in the coming days would possibly be led by the Banking stocks in addition; a close above 5720 would further accelerate the bullish stance.
F&O View :
Shares of auto battery makers gain on expectations of better.
Margins after prices of lead, a key raw material for batteries.
Tumble near October 2012 lows.
Lead prices have fallen 11.4 percent so far this year.
As of Wednesday's close.
lead constitutes about 80 percent of battery.
Makers' input costs.
Exide Industries Ltd gain 1.2 percent.
Sensex Valuation :
Indian equities may sustain a discount to their long-term average and continue to appear cheap in the near future on that comparison. For, more than the price-to-earnings multiple of the benchmark index, it is the earnings growth which is likely to guide investor interest. Generally, buying equities when the market falls below its long-term valuations is termed as a prudent fundamental strategy, especially for investors with a long-term investment horizon.
Effect On Rupee :
The rupee gained almost a percentage point to close at 54.14 against the dollar on Tuesday on the back of stronger equity markets and rate cut hopes. The rupee gained 48 paisa on Tuesday to close at 54.14 against the dollar on the back of stronger equity market and euros gain against the American currency. The Indian unit, which had closed at 54.62 on Monday, opened at 54.65.The euros gain against the dollar and the spurt in domestic equity markets had a positive rub-off on the rupee, a chief dealer with a public sector bank said.
Government Initiatives :
For long the government has been trying to get retail investors to invest in the stock market so that the collective power of small investors could turn out to be a counterbalance to powerful institutional investors. Retail investors could also bring more stability to the market because they usually do not sell in a hurry. However, despite serious attempts by the government over the years, not many retail investors have started investing in stock markets. Surprisingly, even people at the top of the government machinery are not very willing to enter the stock market. The AMC has got its final approval from Sebi and its first fund, a diversified equity scheme without any sect oral or market-cap bias, is set to be launched within the next one month.
Stock Market Tips assure for great benefits to the small investors or individual investors without having any worry about others. These Stock Tips gives you the flexibility, market punctuality, responsibility & liberty. To get the achievement of superior returns with Stock Tips, a small investors always remain in benefit i.e. these investors enables to allocate their capital towards the best stocks.
For More Info About Stock Market, Trading Strategy, Stock Market Planning Visit Our site at www.capitalheight.com or please call our 24/7 Customer Care Support us at 0731 - 4295950
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