Skip to main content

Intraday Trading Systems and Intraday Trading System for Nifty Stocks and Commodities

By


CURRENTACOUNT DEFICIT & INDIAN STOCK MARKET
            Last week the Reserve Bank of India (RBI) released quarterly BOP data which showed India’s current account deficit reached below a new high of 32 billion USD or 6.7 per cent of GDP in Q3 FY 2012.  CAD, however is expected to narrow down as a result of slowing consumption, sluggish investment, fiscal consolidating, and moderating oil prices and gold imports, we project the full year figure  will come in around 5 per cent—well above the RBI’s estimate of a sustainable level of about 2.5-3 per cent.  The stockmarket will then see a new kind rejuvenation and traders in nifty might look forward to encash the profit.  Given that it will likely remain around 4-5 per cent of GDP over the medium-term, the CAD will limit the RBI’s space for rate cuts, keep downward pressure on INR, and increase india’s reliance on potentially volatile portifolio flows.
While a surge in capital inflows due to DM liquidity and government reform efforts was sufficient to finance the CAD in Q3, while the quality as per expert in technical analysis, the quality of financing remains a concern.  The net FDI declined  to 2.5  from 5 billion, in Q3, while portfolio inflows rose to 8.6 compared to 1.8 billion over the same period  a year ago.  This causes the sharp volatility in the stock market and intraday traders change their trading strategy based on the news upon it. 
            More importantly, there has been notable deterioration in India’s external debt, through the situation appears manageable.  Total external debt rose to 378 billion from 260 billion in 2009 - 10.  The size of India’s external debt is not a problem itself, at 18.3 per cent of GDP it is the 3rd lowest amongst developing countries while its FX reserves cover 81 per cent of total debt.  

Visit Us : www.technotrades.biz
Contact Us : +91-9958406102

Comments

Post a Comment

Popular posts from this blog

By
Post a Comment
Read more

The Mastery Of Self

By
he Mastery Of Self We do everything for a reason. The reason behind any act is, for the most part, unconscious. If we want to change a behaviour we need to identify the reason, the underlying objective, and examine it. We need to examine it to determine whether this objective, this assumption, supports us in what we want to do now. Most of the beliefs, or rules, that govern our behaviour now, were formed in early childhood. They have become predominantly unconscious beliefs and their effect is to dictate the way we respond. Most of these beliefs continue to support us well, but some have long outgrown their value. My baby son Arthur, does not yet know that touching a hot stove is painful. At some point he will burn himself and he will start to form a set of beliefs about hot things that will, by governing his behaviour, protect him from getting burnt. He won't necessarily remember these early experiences with heat, but his new beliefs will continue to guide him for the rest of h...
Post a Comment
Read more

LIMITING YOUR WINNERS AND LETTING YOUR LOSERS RUN......

By
This is very common reason why the trading is a losing game for many people. This is the reason we are discussing this point in length. whatever is the trading strategy that a trader uses, it will have its share of losing trades. It depends entirely on you money management methods that will decide the success of trading career. In case you keep you stop loss large then you of course need more large winners or very few losers for making you on the positive territory. In case you keep very small stop losses then you could afford to have more losers and few winners which can be keep trailing for best gains. Now when the winning trade comes immediately after a losing trade there are 2 types of reactions. one may be that i should exit fast and make up loss and the other maybe let me remain till the end or when i get large targets to be in gains . In the first  case the trader will just break even on the day and the second case since the trader gets greedy may even have to take a...
Post a Comment
Read more