MARKET TRENDS OUTLOOK (FOR TRADERS)

The Indian Stock Market Nifty witnessing heavy corrections on Thursday due to worldwide slowdown in economic activities amid renewed Coronavirus fears.   The Nifty opened at 10094 and closed at 9902 (-214.15).   The 52 week low of Nifty was 7511.10 and the high recorded was 12430.   It is clearly visible that the Nifty is trending downward and is more than a half way from its 52 week high or in other words, the difference between 52 week high and low is less than 50% from the historic peak that is 12430 mark.                               In better explanatory words (12430 – 7511 = 4919) >50% of (12430 – 9902 = 2528).   From the above equation, we can understand that the correction may sustain for some more time and can witness correction of another 1000 points in Nifty in few days.   The Nifty is expected t...

The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers' Index (PMI) (also known as the ISM Services PMI) report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector. The NMI is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting. The Non-Manufacturing ISM Report on Business is based on data compiled from monthly replies to questions asked of more than 370 purchasing and supply executives in over 62 different industries representing nine divisions from the Standard Industrial Classification (SIC) categories. Membership of the Busine...

U.S. stock-index futures looked to extend their gains on Wednesday, a day after major equity benchmarks closed at their early March highs, as investors awaited an important indicator of the labor market’s health.   Futures for the Dow Jones Industrial Average were up 159 points, or 0.6%, at 25,860 and US S&P 500 index were trading 12.60 points, or 0.4%, higher at 3,089.50.   Markets have climbed a virtual wall of worry to head higher over the past several sessions, shrugging of social strife and violent demonstrations in major cities, testiness between the U.S. and China and the economic carnage wrought by a viral pandemic.   It is also to be noted that estimate loss of employment in April may reach the figure of 20.236 million. The data, which will be released at 8:15 a.m. Eastern, comes ahead the more closely watched Labor Department report that will be released Friday.   Social unrest continues across the U.S. resulting in New York, known as...

The crude oil prices are trending upside due to expectations that major producers will agree to extend output cuts during a video conference likely to be held this week and as countries and US states begin to restart after the current lockdown under pandemic situation.   The Organization of the Petroleum Exporting Countries and others including Russia, a grouping known as OPEC, are considering extending their production cuts of 9.7 million barrels per day (bpd), or about 10 per cent of global production, into July or August, at a meeting expected to be held on June 4.  It is also expected that OPEC and other supporting countries would be cutting their oil production till September end.   Saudi Arabia has been pushing to keep the deeper cuts in place for longer, sources said. The gradual reopening of businesses in a growing number of US states and countries around the world after shelter-in-place mandates caused by the coronavirus pandemic also oil boosted price...

A consultation by London Stock Exchange found that most wanted markets to open from 09:00-16:00 as opposed to 08:00-16:30 as they do now. Traders say they have to work before and after market hours, not just during, so end up doing very long days.   Shortening trading hours has the potential to improve wellbeing and diversity on our trading floors and ultimately to deliver better outcomes for our clients," said Galina Dimitrova, director for investment and capital markets at the Investment Association. Many industries and restaurant giants have opened their businesses in United Kingdom and some are proposed to be opened on Thursday after amid lockdown from the present pandemic. The British pound today rallied higher against the US dollar on hopes that the UK and the Europen Union would reach  a post-Brexit deal according to recent news headlines . The GBP/USD currency pair rallied to new monthly highs as investor...

Today’s (Tuesday) Indian Stock Market Nifty opened at 9880.85, touched 9995.70 and finally closed at 9979.10 with an gain of 1.56%.   The Bank Nifty supported with a gain of 2.86%.   The Bank Nifty opened at 20120.60, touched 20615.75 and finally closed at 20530.20.   The stocks like Tata Motors resumed production, whereas companies like Britannia Industries and Voltas reported rise in net profit on year on year basis.   Also, Prime Minister, Mr. Narendra Modi encouraged country’s leading entrepreneurs to put one step forward in the reform strategy for Make in India Programme.   It is also observed that Dollar Index has weakened during the evening session due to economic slowdown and increase in the number of unemployment in USA leading to rise in currency values of other countries, which also resulted rise in Bank Nifty supporting Nifty to sustain above 10000 mark.                ...

The Indian Stock Exchanges ultimately witnessed the long waiting spike from 9000 mark (Nifty) to 9300 mark with the support of Banking Sector with an increase around 1000 points in Bank Nifty. The Indian Banks have reacted against the RBI’s cut down in repo rate and reverse repo rate by 0.40% in order to create more liquidity in the system.    The Nifty remained bullish due to some other factors also including one mentioned above, such as FDI and DII increased their investment enormously.   It is also to be noted that, some of the major sector have been relaxed from lockdown in order to start the economic activities in phased manner.   One of the major factor supporting Nifty is DOW and Nasdaq alongwith US Tech market remained in positive territory.   Whereas dollar index is also at downward trend created spike in Indian Rupees which additionally supported banking sector.     The Nifty may witness some corrections on 27.05.202...