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Around 90% of international trade uses the US dollar as invoicing currency, making it one of the most powerful currencies in the world. This, in turn, gives the US Federal Reserve a prominent position in the financial markets.

“We cannot be a developed country if the bottom 40% of our population is excluded from financial services. The digital world, responsible use of data for cross selling will allow us this access to the bottom 40%; otherwise we will all only end up lending to ensuring and managing investments of the top 60%”

“Facing adversity with a sense of reality was something Rakesh Jhunjhunwala always believed in. How to admit reality and change your view with courage and conviction is a very great quality that he had and he was always a learner. You cannot get wise without being a learner, luck is not enough.”

Nifty futures open interest remained low near 1 crore shares and only marginal additions of long positions were seen last week. With subdued OI, a sharp move seems unlikely. On the other hand, banking space has seen significant long accumulation which has been the driver of recent up move in Nifty.

We changed the market status to a Rally Attempt (on June 21) as the Nifty50 managed to stay above its day one low for two consecutive sessions. On July 18, the index closed 1.43% higher on volume higher than the previous session.

The most recent instance of this dynamic is during the early stages of the Covid 19 pandemic. The pandemic outbreak in the early 2020s caused a horrifyingly rapid and massive decline in economic activity which was aided by the sharpest stock market decline ever. The Fed reacted by slicing rates as low as they go with increased quantitative easing, and then the economy and stocks arrived storming back.

Many traders use an absolute stop loss, just like the one in the example above where the stop loss per trade is Rs 5,000. However, many professional traders prefer to place the stop loss at a point where the premise of taking the trade changes.

With softening commodity prices and rising consumption, analysts expect the overall corporate performance to improve in the second half of the fiscal year. The aggregate revenue of a sample of 2,638 listed companies, excluding banking and finance firms, increased by a four-quarter high of 41.5% on-year in April-June. But growth in net profit was at a four-quarter low of 15.1%

"Although there has been some bounce back in the mid and small-cap stocks; however, smallcaps is still at a significant discount from its high. The smallcap tends to get significantly more in a downturn, it looks like the market is pricing in some sort of downturn there. However, small and midcaps are very much bottom-up segments of the market, and we find a lot of opportunities in that space."

As many as 40 stocks across the sectors have rallied 100-425 per cent since the last Independence Day, rewarding the investors, the data from Ace Equity suggests. Despite the inflationary pressure, strong FII pullout, depreciating rupee, rising crude oil prices, interest rate hikes and geopolitical crises, these stocks have been able to hold ground with sharp upside in the last 12 months.