Here is the latest analysis and commentary by stock market experts Andrew Holland, CEO, Avendus Capital Alt Strategies and Jai Bala of Cashthechaos.com on what is moving the market and how to prepare for next trading week.
Andrew Holland is an established leader in the financial services industry and brings with him a wealth of experience spanning four decades across the UK, Asia, Japan and Indian markets. He joined Avendus in 2016 as CEO, Avendus Capital Public Markets Alternate Strategies LLP.
Jai Bala trades in the Indian stock market and US Futures and Commodities markets and has been providing portfolio advisory services to Indian and NRI retail investors and brokers and sub-brokers in the Indian market for the past 5 years.
While giving his take on Moody’s outlook on India, Andrew Holland said, “I think we all kind of scratched our head a little bit when they actually upgraded the ratings so they have really gone back to where they were before where everyone else is. It is a little bit like looking through the rare view mirror so that is okay, it is done. We will just move on from here, it is not a great deal. My optimism remains that you are going to have a good global outlook with the US and China trade talks. So it is more about tariffs in the first phase that is for sure will propel other emerging markets and that is why you are getting flows into emerging markets and obviously those will come to us as well because of our weightage in emerging markets and indices."
According to Holland, the finance minister's effort to resolve issues in the real estate is going to help. "It is going to help sentiments and it is going to help some of the NBFCs or the sentiment towards the housing sector. So I like what the government is doing, they are listening and they are taking action, and if anything, maybe the Moody’s downgrade will help them quicken the pace of reforms,” he added.
Commenting on the market performance Jai Bala said, “Today we had important reversal for Hindustan Unilever (HUL) so HUL has made an important major reversal on the weekly charts so watch out for it. State Bank of India, Axis Bank and Infosys have all done the counter -- rally, they are all ready to crack. As long as the markets hold above 11,700 so that should be a trading stop. Remember I had kept in October 11,450 and then raised it to 11,650 that is now raised to 11,700. The trend is still up, until it breaks 11,700 don’t get out.”