Market Commentary:12/9/2014

Major Indian Index Nifty and Sensex opened negative and after two failed attempts to stay positive Nifty Slipped -1.16% and Sensex slipped -1.15%. Both the Indices gave conformation of 20DMA negative breakout which happened yesterday. Indian Market ended up its 8 week low.

Today all the major Indices were negative; India VIX was up by 2.36%. The major losers in stock are SSTL, ONGC, Tata Power, Tata Steel and the top gainers are M&M, Dr. Reddy, Sun Pharma and HCL Tech  

Most of all Asian Markets are in negative in which Chinese market fell over 5% creating a major fall since 2009. Meanwhile Brent Crude oil hit its 5 year low at USD 66/Barrel.   

Technical Analyst predicts 100DMA can be the next support for Nifty and Sensex. Indian stock market is likely to consolidate further this week. Traders say weak global cues and rise in current account deficit (CAD) is the major reason for today’s fall.

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Renuka Sugars: A view

Renuka Sugars

India is a handsome consumer of sugar nearly 23 million tons annually. Recently WTO’s stand on export subsidy of raw sugar and Indian’s stand on import of sugar had bought Indian sugar companies in demand.  

"There was an import parity but mills were not signing deals, expecting revision in the import duty. At 25 percent duty, imports are not viable," said a Mumbai-based dealer with a global trading firm.  As per times of India.

From last few days we are able to see upside movement and the stock is near to the downtrend line. If there is a breakout the stock might show the reversal and currently MACD have shown a positive crossover. And RSI is showing bullish signs.

If the stock fail to give a positive breakout it have a support at 14.58. currently the stock is near to its low. 

Reliance Capital: A View

After, Modi coming up with new banks license in India all the trader in the stock market are having a keen interest on the stock which is getting the banking license. Among which we have Reliance who is a big player and the chance of getting the permit is very high.

Technical Perspective

The stock is showing the divergence and we can see a falling wedge pattern . On 9^th September 2014 the stock had given the positive breakout and the on 10^th September 2014 i.e today the stock had shown a Doji. And we can see the can open with a positive note tomorrow. If not; the stock can end up falling to 500 which is the immediate support. And 577 and 670 are the good resistance. The stock has a potential to make a new high.

Additional Observation

The stock is showing negative correlation from last 6 months and we have to see that the patter will continue or the old pattern will repeat.