Below is a chart of Nifty historical PE from 1999 onwards till today.
The PE data is sourced from NSE website. I assume it is trailing twelve months (TTM) PE. In any case, we will attempt a broad investing theme here so as long as we follow NSE data the analysis remains valid.
In same vein as yesterday observations lets see what we got today:
1. The AD ratio and Up/Down percents are still showing pressure on broad market
2. The no of stocks above 50 SMA has been in downtrend last 3 days.
3. The volumes both in NF and cash have declined sharply today. Cash vol actually more than NF vol, haven’t seen that in a while.
4. Volumes are lowest since 2nd Jan 09. While then was end of holiday period for many institutions, can’t say what is making everyone ditching the markets now! Is it wait-till-elections attitude, is it aversion due to yet unsolved Satyam fiasco, is it expected higher fiscal deficit, or is it just watch which way US markets go ? Most likely the last reason in short term but I also suspect wait-till-election could be reason in the medium term.
5. NF came close but still could touch boundary of gap of 2800 made on 17th Tue. The two day of bounce has been a very weak bounce, it is more of relief that we did not fall down further. However up closing white candles for 2 days still may give minor hope to bulls.
6. FII still selling and DII support is keeping the Nifty afloat with its dignity intact!
Read More...After sharp sell offs from 2950 + levels of last 2 trading sessions, today some relief was seen in Nifty.
From up/down percents, the broader market however seems to be seeing selling. The not so good AD ratio and declining NH-NL inspite of up Nifty close means that broad market is coming under pressure again. That was the same situation till a week back or so when Nifty up closes were not reflected in broad market stocks performance.
FII data is negative again, DII continue to do some buying. If DII also start selling market may see sharp declines.
NOTE: the pivots etc for Nifty Fut may be wrong due to seemingly wrong High value of 2915 in supplied data for NF.
Read More...The title of this blog post is inspired by the movie song – “just chill” …that was being sung in action by FII today going by their sell figures in the end.
The selling today seemingly fed on itself … just when you think some buying support may emerge, it was more selling till the very end.
The noteworthy point in data today is lower NF and cash volumes. Maybe maybe the post interim budget selling is coming to end … unless we get fresh overseas selling cues. But correlation to overseas has become somewhat difficult to predict last few weeks.
The AD ratio has worsened and so has NH-NL. Need to watch these further in next few days.
Read More...Highlights of trade today:
1. The market broke through 50 day MA on high volumes. After staying above 50 SMA for several days, it is not good sign for bulls.
2. Interim budget was the much awaited event today, but it seemed to be “sell before news” kind of event for markets. Anyway most market participants did not expect any great changes from vote on account.
3. The much higher volumes were clearly visible in NF. Cash vol were more or less the same.
4. FII were sellers and DII bigger buyers, continuing their broad role play for several days now.
Read More...