The US index Dow Jones reaches a 52-week high of 35,679
The Fitch downgrades the US credit rating from AAA to AA+ due to concerns over its financial state and debt burden.
Gift Nifty suggests a negative opening for Indian markets.
Nifty has a significant support area between 19,500 to 19,600. The rising channel support at 19,490 and 21EMA at 19,550 could serve as a demand zone for achieving the 20,000 levels. However, if the support at 19,437 fails to hold, a breakdown towards 19,000 to 19,050 levels may be possible in the August series.
Bank Nifty is displaying signs of exhaustion followed by the dumpling top candlestick pattern, signalling the likelihood of profit booking and a bearish trend towards the 44,800-44,600 levels.
#GiftNifty
#PreMarket
The Fitch downgrades the US credit rating from AAA to AA+ due to concerns over its financial state and debt burden.
Gift Nifty suggests a negative opening for Indian markets.
Nifty has a significant support area between 19,500 to 19,600. The rising channel support at 19,490 and 21EMA at 19,550 could serve as a demand zone for achieving the 20,000 levels. However, if the support at 19,437 fails to hold, a breakdown towards 19,000 to 19,050 levels may be possible in the August series.
Bank Nifty is displaying signs of exhaustion followed by the dumpling top candlestick pattern, signalling the likelihood of profit booking and a bearish trend towards the 44,800-44,600 levels.
#GiftNifty
#PreMarket
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US Credit Downgrades and Market Reactions: A Look at Dow Jones, DXY, and US10Y Yield Over Time
When a credit rating agency like Fitch downgrades a country's credit rating, it means they believe the country is at a higher risk of defaulting on its debt obligations.
The impact of Fitch downgrading the US credit rating to AA+ from AAA is likely to be negative for the Dow Jones. A credit downgrade signals to investors that the US government is more likely to default on its debt, which makes US Treasuries a less attractive investment. This could lead to investors selling US Treasuries, which would drive up interest rates and make it more expensive for the US government to borrow money. The higher interest rates could also slow economic growth.
Here are some negative impacts on equities due to the downgrade:
1. Investor Sentiment: A credit rating downgrade may shake investor confidence and lead to increased uncertainty in the markets. Investors might become more risk-averse and move their funds away from stocks and into safer assets, causing a decline in the stock market, including the Dow Jones.
2. Increased Borrowing Costs: As the country's credit rating is downgraded, it becomes riskier for the government and corporations to borrow money. To compensate for this increased risk, lenders may demand higher interest rates on bonds and loans, which could lead to higher costs of capital for companies. This can impact corporate earnings and potentially drag down stock prices, affecting the Dow Jones index.
3. Currency Impact: In some cases, a credit rating downgrade can weaken the country's currency. A weaker currency can lead to higher import costs and inflation, affecting the overall economy and corporate earnings.
In August 2011, Standard & Poor's (S&P) downgraded the long-term U.S. debt from its top-notch AAA rating to AA+. This downgrade was a result of the contentious political debate over raising the U.S. debt ceiling and concerns about the country's fiscal situation. The Dow Jones experienced significant volatility during this period.
Based on the statistics, the Dow Jones has experienced a rally of 14.4%, the Dollar Index has surged by 10.4% while the US 10Y yield dropped by 38% from 2.407% to 1.478% over the next one year.
It is essential to remember that market reactions to credit rating downgrades can vary significantly based on the overall economic and geopolitical context at the time of the downgrade.
Investor's perceptions, government responses, and other global events can all play a role in shaping the impact on financial markets, including the Dow Jones.
Brijesh Bhatia,
Research Analyst, Equitymaster.
When a credit rating agency like Fitch downgrades a country's credit rating, it means they believe the country is at a higher risk of defaulting on its debt obligations.
The impact of Fitch downgrading the US credit rating to AA+ from AAA is likely to be negative for the Dow Jones. A credit downgrade signals to investors that the US government is more likely to default on its debt, which makes US Treasuries a less attractive investment. This could lead to investors selling US Treasuries, which would drive up interest rates and make it more expensive for the US government to borrow money. The higher interest rates could also slow economic growth.
Here are some negative impacts on equities due to the downgrade:
1. Investor Sentiment: A credit rating downgrade may shake investor confidence and lead to increased uncertainty in the markets. Investors might become more risk-averse and move their funds away from stocks and into safer assets, causing a decline in the stock market, including the Dow Jones.
2. Increased Borrowing Costs: As the country's credit rating is downgraded, it becomes riskier for the government and corporations to borrow money. To compensate for this increased risk, lenders may demand higher interest rates on bonds and loans, which could lead to higher costs of capital for companies. This can impact corporate earnings and potentially drag down stock prices, affecting the Dow Jones index.
3. Currency Impact: In some cases, a credit rating downgrade can weaken the country's currency. A weaker currency can lead to higher import costs and inflation, affecting the overall economy and corporate earnings.
In August 2011, Standard & Poor's (S&P) downgraded the long-term U.S. debt from its top-notch AAA rating to AA+. This downgrade was a result of the contentious political debate over raising the U.S. debt ceiling and concerns about the country's fiscal situation. The Dow Jones experienced significant volatility during this period.
Based on the statistics, the Dow Jones has experienced a rally of 14.4%, the Dollar Index has surged by 10.4% while the US 10Y yield dropped by 38% from 2.407% to 1.478% over the next one year.
It is essential to remember that market reactions to credit rating downgrades can vary significantly based on the overall economic and geopolitical context at the time of the downgrade.
Investor's perceptions, government responses, and other global events can all play a role in shaping the impact on financial markets, including the Dow Jones.
Brijesh Bhatia,
Research Analyst, Equitymaster.
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A global sell-off in equities occurred as Dow Jones corrected by a percent following Fitch's downgrade of US credit ratings to AA+. Most major global indices also fell by a percent.
Nasdaq experienced a correction of over 2%, which might negatively impact the start of Nifty IT today.
Nifty fell by a percent and is currently trading at a crucial support zone. On the hourly chart, the lower band of the rising channel is at 19,470, and the 200HEMA is at 19,435. A break of 19,365 will confirm a breakdown, while holding the support area may lead to a target of 20,000 in the August series.
BankNifty is struggling and shows signs of exhaustion, with a breakdown from the dumpling top candlestick pattern confirming a short-term top at 46,400.
In August, banking stocks may underperform, while Power, Energy, and Metals are expected to lead the market.
Gift Nifty indicates the negative opening and 19,500 (Futures) can act as support on expiry day.
#GiftNifty
#PreMarket
Nasdaq experienced a correction of over 2%, which might negatively impact the start of Nifty IT today.
Nifty fell by a percent and is currently trading at a crucial support zone. On the hourly chart, the lower band of the rising channel is at 19,470, and the 200HEMA is at 19,435. A break of 19,365 will confirm a breakdown, while holding the support area may lead to a target of 20,000 in the August series.
BankNifty is struggling and shows signs of exhaustion, with a breakdown from the dumpling top candlestick pattern confirming a short-term top at 46,400.
In August, banking stocks may underperform, while Power, Energy, and Metals are expected to lead the market.
Gift Nifty indicates the negative opening and 19,500 (Futures) can act as support on expiry day.
#GiftNifty
#PreMarket
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Fast Profits Daily - Public Sector Stocks: The Next Big Thing in the Stock Market?
Public sector stocks are on fire in the stock market. But what do the charts say?
http://www.eqtm.in/Nc89B
Public sector stocks are on fire in the stock market. But what do the charts say?
http://www.eqtm.in/Nc89B
👍10
On the weekly chart of Dow Jones, multiple bullish head and shoulders patterns are evident at 200WEMA, with a neckline breakout at 34,400-35,000 level.
The breakout zone if retested can potentially act as an accumulation zone this week.
On the Nifty index, several bullish patterns are evident.
On the daily chart, the index paused at the rising channel pattern and has formed a bullish bat harmonic pattern near 34DEMA.
On the hourly chart, there is a potential inverted head and shoulders pattern with the neckline positioned at 19,555, signalling a likely bullish reversal towards levels above 19,700.
What can take the Nifty higher?
With 13% weights in Nifty50, IT index has retested the breakout level of the Wyckoff theory accumulation zone, indicating a medium-term bullish trend.
While the BankNifty is currently lagging, with a topping formation of the Dumpling top candlestick pattern, and faces a significant hurdle in the 45,300-45,500 zone.
#GiftNifty
#PreMarket
The breakout zone if retested can potentially act as an accumulation zone this week.
On the Nifty index, several bullish patterns are evident.
On the daily chart, the index paused at the rising channel pattern and has formed a bullish bat harmonic pattern near 34DEMA.
On the hourly chart, there is a potential inverted head and shoulders pattern with the neckline positioned at 19,555, signalling a likely bullish reversal towards levels above 19,700.
What can take the Nifty higher?
With 13% weights in Nifty50, IT index has retested the breakout level of the Wyckoff theory accumulation zone, indicating a medium-term bullish trend.
While the BankNifty is currently lagging, with a topping formation of the Dumpling top candlestick pattern, and faces a significant hurdle in the 45,300-45,500 zone.
#GiftNifty
#PreMarket
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Dow Jones surges over a percent, finding strong support at the critical level of 35,000; Nasdaq gains 0.6%.
Nifty finds crucial support at the psychological level of 19,500 and reverses its direction upwards. The short-term chart reveals a bullish inverted head and shoulders pattern, indicating bullish momentum takeover. The index is expected to target levels around 19,700-19,750, with the negation level for the pattern at 19,440.
Bank Nifty is facing resistance in its attempt to move higher above 45,000; a break above 45,115 could initiate a short covering rally. Until then, the bears maintain control in the market.
Nifty IT index is experiencing a bullish surge, primarily driven by heavyweights like TCS and Infosys. The IT stocks are poised to potentially lead the next leg of bullish momentum for the Nifty.
#GiftNifty
#PreMarket
Nifty finds crucial support at the psychological level of 19,500 and reverses its direction upwards. The short-term chart reveals a bullish inverted head and shoulders pattern, indicating bullish momentum takeover. The index is expected to target levels around 19,700-19,750, with the negation level for the pattern at 19,440.
Bank Nifty is facing resistance in its attempt to move higher above 45,000; a break above 45,115 could initiate a short covering rally. Until then, the bears maintain control in the market.
Nifty IT index is experiencing a bullish surge, primarily driven by heavyweights like TCS and Infosys. The IT stocks are poised to potentially lead the next leg of bullish momentum for the Nifty.
#GiftNifty
#PreMarket
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Fast Profits Daily - Next Multibagger Stock in the Paints Sector
What's the outlook for paint stocks? Find out...
http://www.eqtm.in/n5HEi
What's the outlook for paint stocks? Find out...
http://www.eqtm.in/n5HEi
👍4
The US market tumbled as Moody's downgraded the ratings of midsized banks, leading to a 1.58% slip in the Dow Jones Bank Index and a 0.54% slip in the Dow Jones Industrial Average.
The bulls were back on D-street in the second half of the day as Nifty rallied from 19,500 to 19,645. A minor obstacle lies at 19,678, beyond which the bullish momentum could accelerate towards 19,800.
On the weekly expiry, the index is likely to trend in the range of 19,500-19,800.
BankNifty experienced a bullish surge, reaching 44,900. The presence of the 50HEMA and the significant psychological level at 45,000 could pose minor resistance. If an hourly closing price surpasses 45,045, it might instigate a short covering rally potentially driving the index towards 45,300.
Gift Nifty indicates a downward gap of 90 points at an opening of 19,600.
#GiftNifty
#PreMarket
The bulls were back on D-street in the second half of the day as Nifty rallied from 19,500 to 19,645. A minor obstacle lies at 19,678, beyond which the bullish momentum could accelerate towards 19,800.
On the weekly expiry, the index is likely to trend in the range of 19,500-19,800.
BankNifty experienced a bullish surge, reaching 44,900. The presence of the 50HEMA and the significant psychological level at 45,000 could pose minor resistance. If an hourly closing price surpasses 45,045, it might instigate a short covering rally potentially driving the index towards 45,300.
Gift Nifty indicates a downward gap of 90 points at an opening of 19,600.
#GiftNifty
#PreMarket
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Your efforts in analysis, content creation, and YouTube publishing truly bear fruit when your followers derive value from them.
Thank you Ranganathanji for sharing the performance update of the Smallcap and Midcap video. https://twitter.com/rdchari/status/1689163824346390528?s=20
Your kind words are greatly appreciated 🙏🏻
Thank you Ranganathanji for sharing the performance update of the Smallcap and Midcap video. https://twitter.com/rdchari/status/1689163824346390528?s=20
Your kind words are greatly appreciated 🙏🏻
👏29👍11
Forwarded from Equitymaster
Lupin: The Next Big Breakout?
Lupin share price is rising. Let’s take a close look at the company’s stock price from a technical perspective.
http://www.eqtm.in/Tk8s9
Lupin share price is rising. Let’s take a close look at the company’s stock price from a technical perspective.
http://www.eqtm.in/Tk8s9
👍19🔥3
The US market index DJIA is currently hovering above the neckline of a bullish head and shoulders pattern; a potential dip to the range of 34,700-34,500 presents an opportunity for long positions.
Nifty is likely to remain within the gap range of 19,400 to 19,735, with the potential for momentum to pick up upon a breakout in either direction. The strangle shorts derivative strategy could be considered while the index trends within this range.
Nifty IT is encountering resistance at the upper boundary of the gap at 30,960. A breach of the 31,000 level has the potential to initiate a new breakout, favouring bullish sentiment.
USDINR is at the brink of a breakout from a 42-week symmetrical triangle pattern. A decisive breach of the 83 levels will serve as confirmation for the continuation of a bullish trend for the US Dollar against the Indian Rupee.
#GiftNifty
#PreMarket
Nifty is likely to remain within the gap range of 19,400 to 19,735, with the potential for momentum to pick up upon a breakout in either direction. The strangle shorts derivative strategy could be considered while the index trends within this range.
Nifty IT is encountering resistance at the upper boundary of the gap at 30,960. A breach of the 31,000 level has the potential to initiate a new breakout, favouring bullish sentiment.
USDINR is at the brink of a breakout from a 42-week symmetrical triangle pattern. A decisive breach of the 83 levels will serve as confirmation for the continuation of a bullish trend for the US Dollar against the Indian Rupee.
#GiftNifty
#PreMarket
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Nifty Enters Demand Zone 📈💪🏻
Nifty enters the demand zone on the hourly chart. The risk-reward dynamics have set the stage for the bulls to seize control.
Here's why you should be paying attention:
1. Demand Zone of 234HEMA:
The High and Low of 234HEMA marks a critical demand zone.
2. 61.80% Fibonacci Retracements:
Technical enthusiasts, take note!
The 61.80% Fibonacci retracement level intersects with the demand zone.
3. Tales of Gap:
The intriguing interplay of gaps, both as support and resistance, adds another layer to this captivating scenario.
Bullish Opportunity:
The hourly chart signals a bullish opportunity in the range of 19,400-19,440. The patterns are falling into place, suggesting potential upward momentum.
Risk:
On a cautionary note, the pattern could potentially fail below the support of 19,275.
As the Nifty dances within the demand zone and technical factors align, traders should grab an exciting opportunity for potential gains.
#Nifty (CMP-19,440)
#KeepItSimple
Nifty enters the demand zone on the hourly chart. The risk-reward dynamics have set the stage for the bulls to seize control.
Here's why you should be paying attention:
1. Demand Zone of 234HEMA:
The High and Low of 234HEMA marks a critical demand zone.
2. 61.80% Fibonacci Retracements:
Technical enthusiasts, take note!
The 61.80% Fibonacci retracement level intersects with the demand zone.
3. Tales of Gap:
The intriguing interplay of gaps, both as support and resistance, adds another layer to this captivating scenario.
Bullish Opportunity:
The hourly chart signals a bullish opportunity in the range of 19,400-19,440. The patterns are falling into place, suggesting potential upward momentum.
Risk:
On a cautionary note, the pattern could potentially fail below the support of 19,275.
As the Nifty dances within the demand zone and technical factors align, traders should grab an exciting opportunity for potential gains.
#Nifty (CMP-19,440)
#KeepItSimple
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Forwarded from Equitymaster
India's Next Small Cap Wave
Online meeting invite: On 21 August, 5 PM, we’re going to discuss a rare, but powerful new small cap trend unfolding in India. The last time this trend played out it was 2003, and the small cap index surged by 16X in just 5 years time.
Don’t miss out this time.
Register here - http://www.eqtm.in/m2MPq
Tap here for details
www.equitymaster.com
Online meeting invite: On 21 August, 5 PM, we’re going to discuss a rare, but powerful new small cap trend unfolding in India. The last time this trend played out it was 2003, and the small cap index surged by 16X in just 5 years time.
Don’t miss out this time.
Register here - http://www.eqtm.in/m2MPq
Tap here for details
www.equitymaster.com
👍29❤1
Dow Jones has now entered the retest zone of multiple inverted head and shoulders patterns; the range of 34,300-34,600 could be referred to as a demand zone. The pattern negates below 33,500.
On Nifty, the series of lower highs and lower lows indicates a potential test of the 19,000 level; the bullish scenario may come into play if the price rises above 19,516. The weekly OI structure suggests a range between 19,178 and 19,435.
The presence of a bearish head and shoulders pattern on the Bank Nifty indicates a prevailing advantage for the bears. The rise towards 44,000-44,300 levels might offer a chance for short positions. The index has consistently traded below the 50DEMA after April 2023, reinforcing the current short-term bearish momentum.
#GiftNifty
#PreMarket
On Nifty, the series of lower highs and lower lows indicates a potential test of the 19,000 level; the bullish scenario may come into play if the price rises above 19,516. The weekly OI structure suggests a range between 19,178 and 19,435.
The presence of a bearish head and shoulders pattern on the Bank Nifty indicates a prevailing advantage for the bears. The rise towards 44,000-44,300 levels might offer a chance for short positions. The index has consistently traded below the 50DEMA after April 2023, reinforcing the current short-term bearish momentum.
#GiftNifty
#PreMarket
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