#PSUBANKS

Strangely when news of Bank Scams are coming we can see some buying in some PSU Banks in the last two sessions. The buying is absent in Private sector Banks

#NIFTY Weekend view on the 18th.

  As expected the market has been moving sideways.  Last week the selling pressure was more than the buying pressure. However the volume was average to low. The bad news which hit towards the end of the week failed to push the market down too much and the volume remained low. In the overall market also selling dominated in the last three sessions.  With more bad news coming selling pressure is likely to remain in the coming week as well. But the downside is likely to be limited and the index is more likely to continue sideways move.

#NIFTY View of the Market on the 12th of February.

 During my last post on the 8^th the view was that the downside is capped and more sideways movement for the index can be expected. The overall Index movement is still sideways. However the overall market saw sustained buying interest for last three sessions. More buying interest in the overall market can be expected for the coming sessions while the index could move sideways. Sustained closes above 10640 would be required to ensure up trend for the Index. But that will most likely take some time to happen.

#NIFTY View on the 8th of February.

Today we saw strength in the index which gained about 100 points. We saw an above average Bar with above average volume closing on the upper side. The buying pressure dominated the selling pressure. The overall Market also saw wide spread buying. The advances overwhelmed the declines. The buy volume overwhelmed the sell volume. So did the gains over the losses.  The EMA of the buy volume crossed above the average of the sell volume. The average Advances crossed above the average of the declines almost after a month. The Market and the Index move in unison today. Whether this strength will continue or will we see some more sideways moves. We need to wait for the next couple of sessions. The latter seems more probable. At least one thing seems to be certain. The down side seems capped.

#NIFTY View on the 7th of February.

Today the Index opened on a positive note. However the index could not hold on to the gains and eventually closed slightly negative. Yesterday we saw buying in the Index while the overall Market saw selling. Today it was the opposite case as the index saw selling and the overall Market saw some good buying. The advances and the gains were much higher than declines and losses. However the buying and selling volumes were almost at par. The disparity between the overall market and the index still indicates persisting weakness. However it is also an indication that downside would be limited. Such disparity can also be seen in sideways market. We need to see both the Index and the Market move together for any real recovery.

#NIFTY View on the 6th of February.

 Today the Index opened deep down from the previous close.  However in the later half of the session the index recovered smartly with increasing volume regaining part of the losses. We saw a wide spread bar closing on the upper side. The volume was also above average. Today’s Bar indicates there was indeed buying at lower levels.  The overall market did not reflect similar sentiment and unlike yesterday the market behaved contrary to the Index.  The sell volume was 83% compared to the Buy volume of 17%. The losses overwhelmed the gains. So did the declines compared to the advances. The market could see some more downside though limited with sideways moves to follow.

#NIFTY Market Review on the 5th of February.

As most of you may be aware that I have been doing some experiments comparing the overall market behavior with that of the Index. For the last few weeks we had noticed that the behavior of the index was contrary to that of the overall market. When the market was witnessing overall selling pressure the index was showing lot of buying pressure and was moving up.  This index and the market behaving in a contrary fashion was indeed an indication that something was amiss and the index would soon follow the overall market. In the current case I was expecting the index to react sooner. But the Index kept on moving up against a weak market for a over stretched period giving doubts to my belief. Finally the budget turned out to be the trigger and the Index reacted in a big way. The current market had been good learning experience for me. A lot more study would be required to freeze the concepts.   Today’s chart clearly shows there was indeed Buying both in the overall market and the Index in spite of the deep cut. In the market the Buy Volume was almost double that of sell volume. The Index also recovered from the low to close near the top of the bar. The buying pressure was also comparable to the selling pressure though less. All this does indicate that further downside is limited.