- World Bank cut its growth forecast for developing East Asia to 6.9% for 2014 and 2015 from 7.1% (forecasted in April).
- US unemployment slipped to its 6-year low of 5.9% in September from 6.1% in August. Meanwhile, US non-farm payrolls increased by 248,000 in September, exceeding the market consensus of 210,000. As a result, the Dollar was close to its 4-year high.
- The US Fed in its FOMC minutes (September 16-17) said that the current stance is appropriate amid concerns of global growth and the possibility of a stronger Dollar weighing on the US economy.
- European Central Bank (ECB) maintained status quo with key policy rate unchanged at 0.05%. It unveiled the details of its purchases of asset-backed securities and covered bonds, scheduled to commence from mid-October.
Category Archives: Banking
Nifty hits 6700, Momentum not supportive
While the bullish rally of Nifty hitting lifetime high 6700 is welcome, and it has given good profits on long-positions on beaten down stocks like SBI, DLF, etc, the concern is that Nifty is now rising while momentum is falling, and the momentum of the current rally is still lower than the momentum of Nifty rally in Sep 2013. Life time high with lower-grade momentum is not a good sign. Conclusion: unless momentum picks up in April, Nifty may come down to 6300 in April.
ICICI Bank Trading Feb2014
ICICI Bank has a strong resistance at 1030-1035 level, because of the downtrend. The closing price today (17 Feb 2014) was 1009, so we have 2-3% gain available in ICICI Bank trading in the next 2-3 days. Trading with stock/futures is advisable because options trading may not produce suitable gains due to eroding time value ahead of options expiry on 26 Feb 2014.