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Wednesday 7 November 2018

India Sensex Index Analysis

I have not cover Indian Stock Index and now I dedicate an outlook into Sensex to my Indian readers, a look into one of the emerging market BRICs - India Sensex Market.

One of the Technical Analysis experts Mr. Donovan Ang suggest that we are in the expansionary phase of the bull run currently in the 50 percentile of the bull market which will see the bull market ends sometime plus minus 2028, a whopping of 10 years.

A key takeaway of recent US Mid Term Elections where the republicans lose house of representatives to the democrats which we as the traders and investors may see a repeat of the fiscal cliff happened in the ex President Obama's Administration where parliamentary gridlocks of opposing bills result in government shutdowns. Will these events unfold into year 2019 & beyond derailed the bull market or it will be a slow bull which is going to last into year 2028 where there are many walls of worry along the way.

Maecro Economic Environment Outlook

A look into Baltic Dry Index (BDI), Dr. Copper and Crude Oil (WTI) charts suggest global economy is on the expansionary phase where there commodities seen rising prices due to high demand. An economy which is e-revolution, triple Es - Electronics, Electrical and Engineering that drives the new modern economy, see an influx of new E-products from bitcoin mining rigs use to mine bitcoins, Electric vehicle reduce the consumption of crude oil (fossil fuel), Electric Scooters and Bikes, use of robotics to enhance productivity in the service industries. All these consume high amount of electricity.

How does the utilities provider able to provide seamless delivery of electricity to the end consumers by not experiencing disruptions using only source of energy or is going to employ an array of hybrid source of energy ranging from Crude Oil (fossil fuel), renewable energy like wind mills, solar and turbine.

Sensex Monthly Chart 


Sensex Monthly Chart with Technical Analysis

we see Sensex is trading in a range of 39000 recent high of 21000 in year 2008 and 2011 and 22000 of year 2015 low. Sensex is sitting on a support of 30000 after retracement from 39000 recent high.

Sensex is projected that 50000 is the psychological resistance and resistance at 58000 is 2 times of peak 21200 + 7697 low computed and using 58000 X 1.20 = 69000 overvalue resistance for Sensex during the final phase of bull run.



Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.




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