Yay!!! it’s Friday again, it’s newsletter day. (sorry for that)
So the week started with a slightly disappointing news, never expected this from a company like hero.
Here’s the news - The Income Tax Department has found alleged illegal business expenses of over Rs 800 Cr.
After the news was out, I sold my position in Hero and it was my one of the highest conviction idea - 13% of the portfolio ( At one time it reached around 19% of the overall portfolio but ‘thank God’ I sold some part of it)
After this news was out, the company came out with “not so convincing” clarification -
And today they bought around 46k shares of their own stock.
hmmmm…..isn’t the timing too convenient? Desperate effort to stop the further fall in share price?
Anyways now will wait and see how things unfold.
So now getting back to the MARKET UPDATE -
The nifty continued it’s journey and as I said in my previous newsletter, it held 16987 and continued it’s upwards journey. Although i was expecting a pullback looking at the small small candles but FIIs pushed the market higher and turned into buyers after a lootttttttts of selling. (Good days ahead? ^_^)
For next week the key resistance to watch is - 17800 so trade accordingly.
If we look at our US counterpart - S&P 500
It did cross the level of 4595 but went back within the range very next day followed by a big Red candle. Although such a pullback is no worry (We can’t just keep moving in a straight line right?)
Crude oil also cooled off a bit and came down to 100$ from 110$ last week.
On charts it’s forming a double and if it breaks down then we can probably re-visit 70-80$. Neckline at - 94$
And one more good thing, Russia is offering oil at 30-35$ per barrel cheaper to India.
And as for the Gold, it’s just consolidating in a range above 1900$ which is an important support zone.
Unless it gives a breakdown from this level, we can re-visit the All Time High.
(If you wanna learn technical analysis, please do subscribe to my Youtube channel - The Average Trader )
Currently I’m reading about “NAVI TECHNOLOGIES” i’m sure you must have seen it’s ads (It’s very annoying).
India’s one of the real “FINTECH” who is not just a distribution partner but provides end to end services like - Personal loans, Home loans, Microfinance, Insurance & Asset Management ( India’s one of the only fund focusing on “Passive investing” and becoming India’s own ‘VANGUARD’.
The company looks very interesting but it’s a very new company and haven’t really seen any cycles, they just started offering their services in 2020 and other services in 2021.
I’m not done reading it so please wait for it, business analysis coming very very sson.
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ciao, take care.