"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness....." Dickens is so appropriate in stating that situation even today ! Despite best efforts, Euro will unravel. We just don't know the future date yet. UK's separation is just the beginning. It is so counterintuitive that the most intellectual species...
Preaching for patience by setting the examples ;) Roughly 6 months ago we published this piece on technical analysis of Glaxo SmithKline Pharmaceutical Stock. ( bombaybulls.com )It was mentioned clearly in that post that buying the stock near 3600 ( it was trading near that price in March, 2016 ) and hoping for it to reach 4000 might be a gamble ! Six months...
Technically speaking, Lupin Limited stock price is right in the middle of strong support and resistance areas. Given the possibility general equity shake up during the Fed meeting, it is unlikely that it can cross 1700 easily on the upside. Besides there is always a possibility of some black swan event to punish the pharma stock lurching around the corner which...
Exhibition of usual mood swings by markets are at full display. Following the price action tick by tick will make you schizophrenic. In current market conditions, following a trend will leave a big hole in your portfolio because instead of smooth trend, there are tough to predict spikes and gaps. Besides the loss of mental tranquility is a byproduct. In order...
Put on a cynic shrewd trader's hat and let's think about the trading odds. Fed hike scenario is at play now and we have been here many times before. But well, maybe this time it could be different and we are not denying that. So let's think about the possible outcomes in order to exploit future opportunities. 1. Fed chickens out as usual Most probable outcome...
Usual jitters persists at fundamentally non supportive heights. Smart owners know the value of the things they are holding and reducing long equity positions before weekend makes sense. We have just mentioned in our monthly market update as well as in another piece ( To earn from equities innovation is needed ) why markets will keep on floating until the bubble...
Why everybody is doing the same thing? When Mr. John Bogle floated the idea of passive investment in indices, it was a novelty. But now after couple of decades in existence and raft of index linked funds, it is common. And when something becomes too common and ubiquitous in trading, history says it is about to become dangerous. Much touted SIP ( Systematic...
To Earn From Equities - Innovation Is Needed Savvy investors always think about 'what if' scenarios. Thinking about Plan B or Plan C and making appropriate risk adjustments in the strategy is what separates wheat from chaff. Being attached to the reality and understanding the truth that nothing lasts forever under the sun is much needed to accumulate long term...
It would be a waste of time to say anything definitive ahead of NFP release Friday. So we won't dwell much on any particular technical trade but GBP/USD is something we can focus on. We are long GBP/USD based on this rationale and looking for the test of 1.3400 soon. We mentioned in previous post that shorting pound is going to hurt a lot and wise trader should...
Housing is a very basing need and first sign of independence and prosperity. With uplifting of Indian middleclass, this particular segment of the economy is going to keep on booming for next few decades. Also as people seek for better opportunities they migrate to the cities and they are going to need a shelter there. Well, there are innumerable things one can...
For ABB India Ltd. stock, 1000 is solid support. We will be salivating to grab some at that level. Between 2009 and 2013, it spent most of the time between 500 points wide boundary of 400 - 900 and now if it wants to do the same between 1000 and 1500 then a pullback lower will be a good chance to trade it from buy side. Buying the stock in a band of 800 - 1000...
Following the footsteps of big bellwether Infosys, Wipro is exhibiting the recent malaise prevalent in IT industry. Milking the clients just by offering cheap labor model has its limitation. In the age of machine learning, human clients are learning that instead of paying huge sum to Indian IT companies, they can themselves run their IT operations in India !...
Slowly but steadily EUR/USD is scaling one level after another. About a month ago we questioned sell the rally idea on EUR/USD after Fed and switched from seller to buyer. So far so good and nothing to worry other than usual jitters. Of course, current market conditions doesn't warrant complacency but if Fed doesn't deliver soon, then as one way buy side trades...
After a long slide from 450 to 200, finally it looks like ONGC ( Oil and Natural Gas Corporation of India ) wants to go higher or at least stabilize near this band. We are dabbling with long entries scattered near 220. There is still lot left in the tank if stock starts moving in the right direction. Next significant hurdle comes in around 260 and after that...
At 95, Dollar index is at very significant juncture technically. A clean break here can open the path for 92 and 90. If DXY stabilizes here then a messy low range of 94 - 96 might continue for longer. Further ramp up of rate hike expectations from Fed, like what Dudley did yesterday without action in the next meeting may provide coup de grace for the dollar....
Easy money has already been made in short GBP/USD trade. Now as GBP/USD will approach 1.25 on decent dips, equation will be skewed to help buyers. Even a little positive ( or even less negative ) data will create short squeeze like the one we are witnessing today. We are still sticking with buying the dip in GBP/USD. Because strong negativity followed by Brexit...
Nothing can defy gravity forever in markets. Grasim industries stock's nonstop run from 3200 to 5400 has finally come to an end. Almost 1000 points, which took around 3 months to gain have been undone in just 3 days. There is a lesson for traders that, no matter how good things look, you need to keep your risk in check. Now let's work on levels which can give...
Didn't we said the same thing last month too ?! Well, Yes we did and still we maintain the same buy side bias as we did even during previous month ! Argument is still pretty much intact about BOE and ECB divergence. If USD remains little lenient and merciful to Euro then pound weakness will take care of itself. Because extreme USD strength usually hurts Euro the...