SENSEX and NIFTY50, which had been declining for 4 days, stopped the decline
On September 6, the Indian market declined for the 3rd consecutive day, with Nifty50 falling near 24,800 and SENSEX dropping below the 81,000 mark ahead of the US employment statistics. The employment statistics released on Friday indicated that employment in the US remains weak, putting pressure on Wall Street due to concerns about a possible economic downturn in the USA. As a result of investors avoiding risk assets and investing in safer assets, bond yields and commodity prices fell, causing a decline in the Asian stock market on Monday.
For individual stocks, SBI Life and Cipla each rose by 1.5%, Tata Consumer Products by 1.5%, HDFC Life by 1.2%, and Britannia by 1.1%.
The latest data from China, India's largest trading partner, also weighed on sentiment. Consumer prices in mainland China rose softer than expected, while producer prices fell the most in the past 4 months.
On September 9, SENSEX and NIFTY50 started lower based on the trading of GIFT NIFTY around 24,830.5, but they rebounded after the opening and recovered.
Nifty 50 has formed a long-term bearish candlestick pattern on the daily chart, closing below the 10-day and 20-day EMAs (exponential moving averages). The momentum indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are showing short-term negative signs with a negative crossover. The weekly chart recorded a bearish engulfing candlestick pattern, indicating a reversal of the bearish trend, causing a sharp decline in the market. Experts view this profit-taking selling as a healthy element within the upward trend. The 25,000 mark is a significant resistance, and if breached, there is potential for a recovery of upward momentum aiming for the 25,250-25,400 levels. However, breaking below 24,750 could face profit-taking selling pressure.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
chanboka : Thank you for today as well. I'm glad to see the rising trend in India. It's a shame that it doesn't last long, but I will try not to get too excited about short-term movements and believe in my inner voice and take a long-term perspective.
乱空 OP chanboka : Although there are some profit-taking sells in Indian stocks, they are relatively performing well. However, it can be challenging with yen-denominated investment trusts or ETFs due to exchange rate losses.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
So, with the trend of a weak dollar, the Indian rupee is gradually strengthening, and recently I have been considering that INR/USD may be more stable compared to INR/JPY.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Therefore, if you have surplus dollars, it might be worthwhile to invest in dollar-denominated ETFs listed on the market for more stable returns.
chanboka : Thank you for your guidance!
As I am invested in a yen-denominated investment trust, I am consistently being hit by forex losses. In addition, due to the poor timing of purchasing at the peak, I have been unable to feel the positive performance of Indian stocks (crying).
I will consider investing in dollar-denominated ETFs!!
乱空 OP chanboka : As my main investment is in yen, the profit from exchange rates has almost disappeared.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
I think it's best to leave it as it is, as I believe India's situation is still on the rise.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Considering the continued rate cuts in the usa, the possibility of a weaker dollar and a stronger yen and inr is high, so it's important to take that into account.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
At the moment, the exchange rate fluctuation for inr/jpy is 0.5%, while for inr/usd it is 0.04%, indicating a degree of stability. When eventually converting to yen, there will be profit/loss from the dollar, so buying dollars and holding them is a concern for the future.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
chanboka : Thank you very much for your valuable advice
The talk about exchange rates was very informative. Everywhere now is unsettled, and amateurish thinking doesn't lead to good results, so as you suggested, I think I will hold and see. Please continue to teach me various things in the future
乱空 OP chanboka : Since this is just an analysis for beginners, it might be helpful to take it as just one example of how to view things.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
chanboka : Yes