Shekhar's Tech-Nifty Intraday -02-.09.15

Nifty Intraday/Day trading levels-

Buy Abv. 7842 With SL 7823 For Targets (7881)-(7896)

Sell Below 7823 With SL 7841 For Targets (7784)-(7769)

As rules- 1. Take any entry/exit by filttering of 2-2.5 points even for reverse...

                      Check accuracies in a month atleast.

2. At buy targets...can sell with stop loss of +15 points from 2nd target

    Same as reverse ,

    At sell targets...can buy with stop loss of -15 points from 2ndt target

Performance- From 12h July to till now earned 

total 824 points

Follow ups-

By my follow ups..sl triggeredin long cal and 50% quantity booked by 2 times and then sl trigered in short cal -over all -22 points today.

For live updates can visit- https://www.facebook.com/groups/481977645293227/

Got loss total points is -22

Wall Street falls sharply after weak China data-

• Wall Street slumps more than 2%
• 
  

NEW DELHI: 
                      The S&P BSE Sensex plummeted 586.65 points on Tuesday amid weak GDP data and a slump in equity markets the world over, as a contraction in August PMI stoked fears of a sharper slowdown in the Chinese economy. The 30-pack index settled the day 2.23 per cent lower at 25,696.44.

The 50-pack Nifty shed 185.45 points, or 2.33 per cent, to close at 7,785.85. Selling was seen across the board, with all the 12 BSE sectoral indices ending in the red. 28 of the 30 Sensex stocks ended the day in red. Hindalco and Axis Bank were the top losers, down 5 per cent each.

India VIX, the fear gauge, climbed 21 per cent during the session, suggesting volatile days ahead.

The domestic GDP growth stood at 7 per cent in the June quarter, data released post the market hours of Monday show. This was lower than 7.5 per cent growth at which the domestic economy grew in the preceding quarter.

Nikkei India Manufacturing PMI — a composite monthly indicator of manufacturing performance — stood at 52.3 in August, down from a six-month high figure of 52.7 in July, indicating a slower pace of growth in the sector. Global sentiment were weak following a contraction Chinese PMI readings. Most Asian markets ended lower. European shares too were trading up to 1.5 per cent lower.

Adding to the concerns, Chinese PMI came in at 49.7 for August, down from the previous month's reading of 50. The weak numbers sparked selling pressure across Asian and European markets.

Asian markets, led by Japanese Nikkei, settled up to 3.84 per cent lower. European indices on the other hand were ruling up to 3 per cent at the time the domestic market closed.



Below-expected Q1 GDP data: 

India's economy expanded 7 per cent in the first quarter, well below expectations and slower than the preceding three-month period. The consensus expectation for India's GDP growth was 7.4 per cent.

Top two global rating agencies have lowered their growth forecast for India, citing concerns on reforms and other factors. Fitch on Tuesday slashed FY16 real GDP growth forecast to 7.8% from 8%, and FY17 forecast to 8.1% from 8.3%.

Earlier in August, ratings agency Moody's has already lowered its growth estimate for the year to 7 per cent from 7.5 per cent estimated earlier.

"When you analyse the GDP data, we see that things could have been better, but unfortunately things are going relatively slow. The only silver lining out of all this particularly gloomy numbers is that we are seeing the spending from the government side, which is on the rise," says Deven Choksey, MD, KR Choksey Securities, in an interview with ET Now.

"If it (government expenditure) continues to be on a higher side, we will see subsequently better numbers than what we were expecting. Though in this particular quarter, we were expecting somewhere around 7.5% kind of a GDP growth," he added.

Potential US Fed rate hike in September: 

Overnight, US markets ended lower after comments from a senior Federal Reserve official heightened fears among investors of a potential US interest hike in September.

"Fed Vice Chairman Stanley Fischer on Saturday said US inflation would likely rebound as pressure from the dollar fades, allowing the Fed to raise interest rates gradually," said aReuters report.

"Fischer's remarks at the global central banking conference in Jackson Hole, Wyoming, suggested the Fed does not see the recent stock market drop and concerns about China as reasons that would keep it from raising rates," added the report.

"Whenever the Fed thinks in terms of raising rates or whenever there is any suggestion that the Fed might raise rates, there is always going to be turmoil - so can you wait for that perfect moment and then raise it, I do not think so," says Mythili Bhusnurmath, Consulting Editor, ET NOW.

"We will have to wait till September 17th to find out what the Fed finally rules. Ultimately, it is a judgment call, central banking, monetary policy is an art, not really a science, and that is what most central bankers are discovering," she added.

Bhusnurmath is of the view that till this Fed's decision on September 17th comes out, there will be increasing nervousness, sideways movement. And if China decides to go for another depreciation, then think all hell will break loose.

China slowdown jitters haunt markets:
Asian markets were trading lower after twin surveys showed China's manufacturing sectorcontracted in August, raising fresh fears about the health of its economy.

"China's official Purchasing Managers' Index (PMI) fell to 49.7 in August from the previous month's reading of 50.0, the weakest showing in three years," said a Reuters report.

"Separately, the private Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) showed a final reading of 47.3 in August, the lowest since March 2009," added the report.

Chinese shares, which opened lower, extended fall with the Shanghai Composite Index registering an intraday plunge of over 4 per cent.

Rise in crude oil prices likely to weigh on markets: 

Brent and US crude soared over 8 per cent in the previous session, fuelled by an OPECcommentary saying the cartel was willing to talk to other producers to achieve reasonable oil prices.

"US crude had climbed 27.5 per cent in three days of gains, the largest three-day increase in dollar terms since February 2011, and the biggest percentage increase since August 1990," said a Reuters report.

"Rise in crude oil prices is not going to be good news for markets and it is also probably not going to be good news for the Indian economy. But, to put the crude price in perspective, this revival over the last few weeks is really after a significant downturn compared to the last year," says Atsi Seth, Moody's Investor Services in an interview with ET Now.

"Crude prices are still much lower than previous peaks and much lower than their previous averages as well. Having said that, yes, if crude oil went back to previous averages or previous peaks, the macroeconomic balance that India has achieved, which is still fairly high growth and fairly low inflation, that would probably turn around. So, that is a risk that remains," she added.
Sharp selling by FIIs: 

FIIs August selloff of over Rs 17,000 crore was the biggest since January 2008, while buying from domestic institutional investors to the tune of over Rs 15000 crore supported the market, said media reports.