Stock market watch: What to expect from the week ending November 19, 2021 (2024)
Sideways correction continues: Though the one-way rally has been halted, Indian equity market is still not getting into any deep correction. Instead, it is now going through a timewise correction and the Nifty is moving sideways for the last two weeks. Several factors are contributing to this and most important among them is the uncertainty regarding the US Fed’s next action. Since the US inflation number is already at multi-decade high, there are fears that the US Fed may tighten monetary policy quicker than expected. Industry and market friendly actions by the Indian government, like the decision to increase ethanol blending to 20% is also supporting the market. As per the plan, it will start from April 2023 and achieve 20% target by 2025. In addition to supporting sugar sector, this will also reduce our dependence on imported crude. Large number of corporate results are also hitting the market now and therefore, it is natural for the market to take time to digest them.
Technical factors are also behind this movement. After the break of 20 day moving average, 50-day average is providing solid support. “Nifty is respecting the 50-day moving average and is taking support from it for the last 1 year and positive bias can be retained till that remains,” says Vikas Jain, Senior Research Analyst, Reliance Securities. In fact, Nifty has tested the rising 50-day average twice during the last two weeks. Wave wise analysis is also showing sideways move for some more time. “I am not expecting any move beyond 18,300 soon. We are at the last leg of the correction and fresh high is possible only after the 5th wave,” says Sacchidanand Uttekar, Deputy VP, Trade Bulls Securities. The Nifty is placed between 17,700 and 18,200. Short term investors and traders should be careful in sideways moving periods because any breakout from this short range can be sharp.
during October 2021 has significantly increased by 28.2% to 63.8 million tonnes (MT) as compared with October 2019 (non-Covid year) and by 14.7% compared with October 2020 (Covid year). Coal production also showed significant improvement on a month-onmonth (m-o-m) basis, and was up by 23.4% as the monsoon season receded leading to a pick-up in mining activities. During the month, Coal India Ltd (CIL) produced 49.8 MT of coal, up 26.4% compared with October 2019. Singareni Collieries Company Limited (SCCL) produced 5.3 MT of coal, 4.7% higher compared with October 2019. Captive coal production jumped by 63.8%.
On a cumulative basis, India’s coal production increased by 12.2% during April 2021 to October 2021 period as compared with the corresponding period of the last year (2020) and 7.8% compared with the same period of 2019. CIL produced 299.6 MT of coal during April 2021 to October 2021 which is 45% of the annual production target of 670 MT for the full year 2021-22.
Despatch of coal
The overall coal despatch has been 70.4 MT in the month of October 2021 as compared with 59.9 MT and 50.5 MT in October 2020 and October 2019, respectively. While despatch of coal to power sector and captive power plants increased by 42% and 44%, respectively, during October 2021 when compared with October 2019, it fell sharply for other sectors like cement, steel, sponge iron as collieries prioritised fuel supply to coal-starved power plants to ensure uninterrupted electricity supply. Coal despatch to other sectors including fertilizers, textile, chemicals etc increased by 39% compared with October 2019 but fell by 38% y-o-y.
Stocks at power plants Coal stocks at power plants have marginally improved with the average daily stock at 135 coal fired thermal power plants increasing to six days as on 1 November 2021, as against around four days seen in mid-October2021. However, this is still significantly lower than the 22 days of fuel stocks prescribed by the Central Electricity Authority (CEA). 71 power plants with total installed capacity of 84,511 MW have total coal stocks of less than six days (critical level).
Outlook While domestic demand for coal from power sector picked up from August 2021 onwards as business and economic activities revived as the country unlocked from the second wave of Covid-19 pandemic inflicted lock-downs, supply from coal mines have been interrupted due to extended monsoons. However, India’s coal production is expected to pick up going forward. Demand for coal, on the other hand, is expected to be higher than supply as rising international coal prices will likely keep tab on imports into the country. In order to achieve the annual production target and to meet the rising demand situation, the domestic coal companies, including CIL and SCCL will have to significantly ramp up the production from October 2021.
Around $14 billion of stock value was lost, wiping out thousands of investors. The panic selling reached its peak with some stocks having no buyers at any price. The Dow lost an additional 30.57 points, or 11.73%, for a total drop of 68.90 points, or 23.05% in two days. On October 29, William C.
The annual S&P 500 average return in 2023 was 24%. So far, the average return for 2024 is around 19%. "Investing can be a good way to grow wealth over the long term and offers the potential for higher returns compared to a typical checking or savings account," says Jordan Gilberti, CFP and senior lead planner at Facet.
Whether because of weekend optimism or because Saturday and Sunday's news hasn't been priced into the market yet, many traders feel that Fridays see stocks and indices priced higher.
Again, you technically don't lose any money in the stock market unless you sell your investments. If you simply hold your stocks until the market rebounds, your stocks should regain their value. The key is to ensure you're investing in strong stocks that have the ability to weather market turbulence.
Lack of knowledge and expertise. Investing in the stock market requires a certain level of knowledge and expertise, and many people may not have the necessary skills or experience to make informed and profitable decisions. Emotional decisions.
A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.
Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.
Northern Trust's 10-year outlook pegs just a 6.3% return for U.S. equities and global equities. During the next decade, Vanguard anticipates a nominal, annualized return range of 3.3% to 5.3% for U.S. equities and 6.7% to 8.7% for global equities.
What Is the 11am Rule in Trading? If a trending security makes a new high of day between 11:15-11:30 am EST, there's a 75% probability of closing within 1% of the HOD.
The 3-5-7 rule in trading is a risk management guideline that suggests limiting the amount of capital you put into any single trade. According to this rule, you should not risk more than 3% of your trading capital on any one trade, no more than 5% on any one sector, and no more than 7% on all trades combined.
During a bear market, Mondays and Tuesdays are most volatile, and stocks tend to fall the most on these days. In contrast, Thursdays are good days to sell because stocks tend to rise during that day of the week.
What Is the Weekend Effect? The weekend effect is a phenomenon in financial markets in which stock returns on Mondays are often significantly lower than those of the immediately preceding Friday.
Friday is not the only day considered favorable for selling stocks. Some investors swear by Tuesday or Wednesday, citing the elimination of the volatility typically seen at the beginning and end of the week.
The financial outcome of the crash was devastating. Between September 1 and November 30, 1929, the stock market lost over one-half its value, dropping from $64 billion to approximately $30 billion.
By the end of the stock market downturn of 2002, stocks had lost $5 trillion in market capitalization since the peak. At its trough on October 9, 2002, the NASDAQ-100 had dropped to 1,114, down 78% from its peak.
Worldwide losses were estimated at US$1.71 trillion. The severity of the crash sparked fears of extended economic instability or even a reprise of the Great Depression. Dow Jones Industrial Average falls 508 points (22.6 percent), the largest one-day drop by percentage in the index's history.
In the United States, the stock market plummeted, wiping out nearly $8 trillion in value between late 2007 and 2009. Unemployment climbed, peaking at 10 percent in October 2009. Americans lost $9.8 trillion in wealth as their home values plummeted and their retirement accounts vaporized.
Introduction: My name is Dean Jakubowski Ret, I am a enthusiastic, friendly, homely, handsome, zealous, brainy, elegant person who loves writing and wants to share my knowledge and understanding with you.
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