Equities seen higher on positive global cues (The Economic Times 4th Feb 2008)Equities are likely to extend gains on Monday mirroring global markets after the US manufacturing data showed an unexpected increase, easing concern the world's largest economy will fall into a recession. Microsoft’s biggest-ever takeover bid for Yahoo also boosted optimism about share valuations and buoyed the overall market, signaling a revival of mergers and acquisitions. On Friday, the Dow Jones Industrial Average finished up 92.83 points, or 0.73 per cent, to 12,743.19, the Standard & Poor's 500 Index gained 16.87 points, or 1.22 per cent, to 1,395.42 and the Nasdaq Composite Index shot up 23.50 points, or 0.98 per cent, to 2,413.36. Elsewhere in Asia, Japan's Nikkei and Topix gained 2.48 per cent and 2.04 per cent, respectively. Hong Kong’s Hang Seng climbed 3.48 per cent and Singapore’s Straits Times rose 2.21 per cent. More
Asian markets rally; Nikkei up 335pts (Business Standard 4th Feb 2008)Asian markets have posted smart gains this morning.The Hang Seng has surged 925 points to 25,048. The Nikkei has rallied 335 points to 13,832.The Shanghai Composite index has soared 207 points to 4,528. More
R-Power listing may trigger rally (The Economic Times 4th Feb 2008)January was a bad month for the stock market. So, the turnaround in sentiment on Friday was a welcome relief from the recent bear stranglehold. Experts believe that the rise in global markets could be a sentiment booster, but the rally has to be broad-based to be sustainable. The near-term trigger for the market would be the listing of the much-awaited Reliance Power. “A run-up before the Reliance Power listing, which may happen on February 11, could see the next week ending with gains. Expectations of the budget will flow in from various quarters. Even if the indices start moving higher, it will take some time before loss-struck retail investors can step back in. Those who have the money, buy blue-chip stocks which have been recently feeling blue,” says a note from India Infoline. The sliding US housing market, together with the credit crisis, has now convinced many in the market that a recession is already underway after a drop in January employment.There has been a series of bad news for the US economy, which served to dampen sentiment in other countries too. More
Market could rebound ahead of budget (The Economic Times 4th Feb 2008)It’s testing time for investors, as uncertainty persists over the extent to which foreign funds may withdraw money from the emerging markets including India. However, on charts, both the Nifty and Sensex are trading in the oversold region, with both weekly and quarterly charts in the oversold zone. This is an indication that the market could rebound, at least in the short run. The Nifty is still well above its 200-day moving average (DMA) of 4,940. The relative strength index (RSI), which compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions, is also in heavily oversold territory. The weekly RSI is well below 30 (once RSI falls below 30, its an indication that the market is poised to recover). However, monthly charts are showing minor declining trends, but may give a buy signal very soon, ahead of budget. The monthly RSI is at around 35-levels. Apart from RSI, Nifty volatility, which had moved above 40 recently, has started falling. This is also an indicator that the market is set for a bounceback. On Friday, the Nifty closed at 5317.25, down roughly 1% from the previous week, thanks to a sharp rally on Friday. In the last month or so, the index has fallen almost 15%. Now, if the Nifty moves above 5,425-levels, then we may see major short-covering in Nifty February futures. This is because many institutional investors have hedged their portfolios at an average of 5425. This can push the index to around 5,600-5,750 in the short-run. However, if the Nifty falls below 4,940-levels, then the next strong support for the index is 4,400, which is a three-year moving average. More
Asian markets rally; Nikkei up 335pts (Business Standard 4th Feb 2008)Asian markets have posted smart gains this morning.The Hang Seng has surged 925 points to 25,048. The Nikkei has rallied 335 points to 13,832.The Shanghai Composite index has soared 207 points to 4,528. More
R-Power listing may trigger rally (The Economic Times 4th Feb 2008)January was a bad month for the stock market. So, the turnaround in sentiment on Friday was a welcome relief from the recent bear stranglehold. Experts believe that the rise in global markets could be a sentiment booster, but the rally has to be broad-based to be sustainable. The near-term trigger for the market would be the listing of the much-awaited Reliance Power. “A run-up before the Reliance Power listing, which may happen on February 11, could see the next week ending with gains. Expectations of the budget will flow in from various quarters. Even if the indices start moving higher, it will take some time before loss-struck retail investors can step back in. Those who have the money, buy blue-chip stocks which have been recently feeling blue,” says a note from India Infoline. The sliding US housing market, together with the credit crisis, has now convinced many in the market that a recession is already underway after a drop in January employment.There has been a series of bad news for the US economy, which served to dampen sentiment in other countries too. More
Market could rebound ahead of budget (The Economic Times 4th Feb 2008)It’s testing time for investors, as uncertainty persists over the extent to which foreign funds may withdraw money from the emerging markets including India. However, on charts, both the Nifty and Sensex are trading in the oversold region, with both weekly and quarterly charts in the oversold zone. This is an indication that the market could rebound, at least in the short run. The Nifty is still well above its 200-day moving average (DMA) of 4,940. The relative strength index (RSI), which compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions, is also in heavily oversold territory. The weekly RSI is well below 30 (once RSI falls below 30, its an indication that the market is poised to recover). However, monthly charts are showing minor declining trends, but may give a buy signal very soon, ahead of budget. The monthly RSI is at around 35-levels. Apart from RSI, Nifty volatility, which had moved above 40 recently, has started falling. This is also an indicator that the market is set for a bounceback. On Friday, the Nifty closed at 5317.25, down roughly 1% from the previous week, thanks to a sharp rally on Friday. In the last month or so, the index has fallen almost 15%. Now, if the Nifty moves above 5,425-levels, then we may see major short-covering in Nifty February futures. This is because many institutional investors have hedged their portfolios at an average of 5425. This can push the index to around 5,600-5,750 in the short-run. However, if the Nifty falls below 4,940-levels, then the next strong support for the index is 4,400, which is a three-year moving average. More
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