SP500 vs Bonds- Jaws of Death?

This kind of diversion between equities and bonds usually does not end well for equities. The above chart plots S&P500 index vs Vanguard Total Bond Market ETF (NYSEARCA:BND). The divergence starts from Nov 2016 and appears to be peaking out.

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IFCI Trading – 05Oct2016

Buy IFCI at 26.65 for Target 28.65 with Stop Loss 25.00. That’s 2 points reward, 1.5 points risk. This trade may take 1-2 months. The uptrend from March has been broken but IFCI tends to bounce back from sharp corrections. Market conditions are favorable for financial stocks with reducing interest rates. Investor with 12-18 months timeframe should hold IFCI for target 40, which can give 50% return on current price.

ifci-05oct2016-26-65

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Nifty Trading – 07Aug2016

https://www.tradingview.com/x/rUs4vDXr/

Nifty is back in buying zone with high quality reversal of the nascent down trend that was getting set for last 5 trading days. 8600 is the key level, below which downside will restart. Nifty may gain 100-150 points more before stalling.

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