Author name: Anosh Mody

This past week could prove to be a pivotal phase for the short-term trend of the stock markets. Here’s why:

Friday saw a fairly sharp and sudden selloff in the markets, with intraday price action being very similar to something one would otherwise expect in a bear market. Daily/Weekly closes of Nifty and Banknifty signal exhaustion, too. Major stocks appear to be testing supports.

Other indications like the OI and global indices point signal some weakness, as do other securities like US bond yields.

This may signal weakness in the markets for the short-term, but pre-budget volatility and retracements are common, especially when normal profit booking can lead to dampened sentiments amidst euphoria.

Our view for the coming week is cautiously optimistic. Since the broader uptrend is intact, we aren’t bearish, but with some mixed signals, being cautious is important. Read this week’s edition of Market Chronicles to understand our rationale and how the financial markets are placed.

Nifty ended this otherwise-sideways week with a blockbuster finale on Friday. It’s moved deeper into uncharted territory and going by global cues, it might continue doing so.

Based on OI data, it seems puts have very high OI at lower levels which may indicate that there is the expectation of sufficient support at lower levels. Interestingly, call writing at higher levels isn’t that comparable which may indicate that larger players aren’t trying to pick a top yet.

Rising tides are lifting all boats, so many stocks appear well in the green zone, which is why dips could be good buying opportunities. Midcaps & smallcaps appear to be very well placed and may give great opportunities, too.

Earnings season is upon us, so we expect them to have a material impact on stock prices. This may mean that many price movements may feel choppy which requires some caution.

To understand our rationale better, read this week’s Market Chronicles with Anosh Mody & Krunal Rindani!

Nifty ended the month of December 7.8% in the green. This brings us to the end of an incredibly volatile 2020, amidst what is probably the most hated bullrun of all time.

This new year has amplified the old questions or concerns of “is this Nifty’s top?” and euphoric sentiments alike.

But if there’s one thing that 2020 has taught us, it’s that the markets are severely unpredictable. For starters, the gap between institutional buying & selling has narrowed. On the other hand, nearly every single dip has been bought into very aggressively so far.

Many sectors are in momentum, too. Nifty Midcap index might be on its way to ATH. Clearly a lot of info!

And if we talk about actionable data, this week’s Open Interest paints a rather interesting picture, too. So do important stocks of Nifty50.

Clearly, that’s a lot of information for anyone to really understand and reflect upon. Especially when it may all seem so contradicting.

Read this week’s edition of Market Chronicles with AM & KR where we try and cut the noise, giving you a snapshot of the financial markets along with our rationale!

The past week has been extremely eventful for the stock markets! With Monday’s crash and the rest of the week sharply recovering despite the holiday season, the week was very unique.

With the markets appearing to be so interestingly placed, there are naturally very polarizing views about what may happen next. While some attempt to calculate when the next top will be for Nifty, others are still high on the euphoric bullishness the markets have witnessed so far.

Midcaps and smallcaps, along with a few sectoral indices, appear to be at make-or-break levels, too. And let’s not forget that with December almost over, Q3 earnings may soon start getting priced in.

This would have been enough reason to be cautious and have a keen eye on what may be in store, but an open after this long weekend may show some interesting moves, too.

The amount of info is quite overwhelming! So check out this week’s Market Chronicles with AM & KR to know all that’s relevant about the markets without unwanted clutter!

Despite doubts from naysayers, Nifty made a new high this week. Many important stocks like HDFC have made new highs, too

While many speculate that the rally may be over soon and the market may correct, bulls have shown no sign of stopping despite December already more than halfway through, a month generally known for profit booking.

The broad market was so strong that it while Banknifty is still over 6% away from its ATH, not only has Nifty closed near ATH, it has also outperformed BN since the past three weeks.

Given this strong positivity, our view remains to be bullish, though there are a few stocks which aren’t as well placed as others, which do have the potential to drag Nifty down.

To understand our rationale and full view, check out this week’s Market Chronicles by AM & KR!

Nifty ended the second week of December 1.93% in the green. Even as naysayers called a top on every rally, supply was absorbed, and stocks performed decently well this week.

FIIs bought more than last week but DIIs sold 2x of their last week’s figure. MTD, we are still seeing +8,000cr net buying which is a solid figure.

RIL & HDFC twins fighting hard to recover from lows means that those key stocks still have strength, and with RIL’s potential, it may just be the driver for the next leg of the rally. It may just be waiting for a solid trigger.

While the overall trend looks strong and dips can be seen as buy opportunities, it also makes sense to be cautious.

This is because after strong euphoria is broken, many may react with paranoia (panic selling). Also, while the market is at sky-high levels, many underlying stocks have moved sideways/fallen in the past few sessions.

We maintain that even though the markets are extended, we are in a firm uptrend, and we remain BULLISH going forward.

Read this week’s Market Chronicles by AM & KR, only on The Financial Pandora