Investoweek - Third Edition
Wrap up of the week that went by.
Welcome to the third weekly edition of Investoweek. This edition we shall be covering about the week gone by in Indian Markets, a snapshot of the US Markets, Currency, Commodity, Crypto Currency Movements, a little about Personal Finance too.
Indian Markets
The week started with Nifty and Sensex opening lower than the close of 19th August 2022. Nifty made a high of 17690 which was lower than the previous week’s close. The trading range for the week was around 345 points in total. The index was down by about 1.12% for the week.
The sectors which were up and managed to hold the markets were Banking and Financial Sector along with Capital Goods. The sector which was down the most was the Information Technology Sector down by 3% during the week.
One surprising indicator is that FII’s have been buying in this month and have been positive after a very long time. During the current week there was good buying by the FII. Not sure if this could be called as the Return of the Foreign Investors to the Indian Market. We will have to watch for few more trading sessions to say the same.
The Advance- Decline Ratio has been steady during the week on the NSE index as a whole, however there looks to be a Overbought situation in the front-line Nifty 50 stocks. The broader Nifty 500 Index looks fairly good, however little heading towards the overbought situation.
Over the past week there were stocks that moved up, down and a few that had just sideways movement.
The stocks from the Nifty 500 Universe that were up during the week:
The stocks from the Nifty 500 universe that were down during the week:
An interesting observation is that the stock Dhani Services has been up for the last ten trading sessions, i.e. two weeks it has been rising upwards. This is not a stock recommendation, please consult your Investment Adviser for further analysis.
The Jackson Hole Summit address by Powell yesterday took the US markets by storm and they ended up down around 3-4%. We need to see if this would impact the other markets at open on Monday.
US Markets
The US Markets were down almost by 4% at the end of the week, and the major impact came in yesterday(i.e. Friday 26th August) after the speech made by Powell at Jackson Hole Summit with the rising of interest rates. To read more about what Powell spoke at the summit, you can read the full article below.
A snapshot of the US Indices as of end of Friday :
and the famous MAANG stocks have also lost around 5% in the week:
All the major Global Indices ended down during the week.
Commodities
The precious metals also were down during this week, and the Crude Oil has been moving up compared to the last week.
Even though there is a correction in the prices of Gold and Silver, the G/S ratio is still very high. There could be some correction seen in these segments, as they look over valued currently.
Currency
The movements in the Currency market were less volatile when compared to the prior week. However the Dollar is gaining its strength as in the previous week against the Indian Rupee.
Rupee again closed near 80 and has been depreciating against the US Dollar for a long time. It needs to be observed how the RBI would want to adjust and balance this in the coming months, along with the inflationary pressure.
Crypto Currency
Cypto’s have been on the loosing front for quite a long time as they have been heading southwards and there has been no respite of moving up. This week too Crypto’s are down by almost 5%.
Personal Finance
Rule of 72
It says that if you know the rate of interest of any product in which you want to invest your money, then by applying the Rule of 72, you could know how long would it take for the amount to double.
For example: if interest rate is 6% p.a, then by Rule of 72, i.e(72/6 = 12) it says it would take 12 years for your money to double.
Note that we have not included inflation in the above calculation.
Reading Corner
A few good reads for the week:
Do you really need a PPF account?
Vistara is India's Second Largest Airline
Crypto Future looks bleak in India
Quote
Source : Google
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