WEEKLY REPORT

RBI’s Financial Stability Report. 

 The Reserve Bank of India’s Financial Stability Report highlighted consumption slowdown, noting that the domestic economy hit a soft patch recently as private consumption, the key driver of GDP, turned weak.

·       Here are the other highlights of the report:

·       The subdued new investment pipeline and a widening current account deficit have exerted pressure on the fiscal front.

·       Reviving private investment demand remains a key challenge going forward while being vigilant about the spillover from global financial markets.

·       Macro-stress tests suggest gross nonperforming assets may decline from 9.3% in March 2019 in 9.0% March 2020.

·       Bulk of the legacy NPAs already recognised in the banking books.

·       Provision coverage ratio of all scheduled commercial banks rose sharply to 60.6 percent in March 2019 from 52.4 percent in September 2018.

·       Recent developments have led to greater market discipline among NBFCs.

Ø  Positives:

Ø  1. No escalation in Geo political tension.

Ø  2. Good progress of monsoon.

Ø   

Ø  Negatives:

Ø  1. Crude and Gold higher which are negatively correlated to stock markets.

Ø  2. RBI Deputy Governor resignation.

This week market has experienced a few good news and many good news yet, nifty has closed at 11788 by a 64.75 points increase by 0.55 %. This week Nifty opened at 11725 made high of 11911, made low of 11651 and closed at 11788.  NIFTY didn’t make a new low this week and terminated the decreasing streak of last 3 week. Moreover as nifty remained positive this week, which shows us that Bears were not active this week or perhaps, they are getting weak. As we clearly don’t know who is in power (Bulls or Bears), this coming week might be more volatile. So keep SL in every trade.

On weekly bases resistance is 12010 and 12103 and support is 11591 and 11426.

Looking to our call performance on weekly basis we end up with Profit of ₹ 45150/- following are the details of our calls.

Calls Brought Forward from the previous weeks 10

Calls given 17

In profit closed 4

In loss closed 1

And Total call running for next week 20      

CENTURYTEX Profit = ₹ 20350

SRTRANSFIN Profit = ₹ 16200

VOLTAS Profit = ₹ 700

SHRIRAMCIT Profit = ₹ 11600

LTTS Loss = ₹ 3700