Singapore: STI Index (.STI) may bounce back

Singapore: STI Index (.STI) may bounce back

Singapore: STI Index (.STI) may bounce back

Market is seen opening higher tracking strong leads from Asian markets and overnight rally on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 19 points at the opening bell.

The all-India general Consumer Price Index (CPI) inflation was steady at 3.15% in July 2019 (new base 2012=100), compared with 3.18% in June 2019. The core CPI inflation rose to 4.24% in July 2019 compared with 4.13% in June 2019.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 638.28 crore on 13 August 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 201.53 crore on 13 August 2019, as per provisional data.

Overseas, Asian shares rose across the board on Wednesday, as the US announced a delay in the implementation of tariffs on some Chinese goods.

Growth of China’s industrial output slowed much more than expected to 4.8% in July from a year earlier, official data showed on Wednesday. Fixed-asset investment for the first seven months of the year rose 5.7%, according to data published by the National Bureau of Statistics. Private sector fixed-asset investment grew 5.4% in January-July, compared with a 5.7% rise in the first sixth months of 2019. Retail sales growth increased 7.6% in July from a year earlier, compared with 9.8% in June.

US stocks soared on Tuesday after the US decided to delay tariffs on certain Chinese goods while outright removing some items from the tariff list. The United States Trade Representative announced Tuesday certain products including clothing and cellphones are being removed from the tariff list based on “health, safety, national security and other factors” and will not face additional tariffs of 10%. Other tariffs will be delayed to 15 December from 1 September for certain goods, it said.

In the global commodities markets, Brent crude oil futures for October 2019 settlement jumped $2.73 a barrel or 4.66% to settle at $61.30 a barrel during the previous trading session.

The domestic equity market slumped on Tuesday, 13 August 2019, dragged by auto, telecom and financial stocks. The Sensex crashed 623.75 points or 1.66% to settle at 36,958.16. The Nifty 50 index slumped 183.80 points or 1.65% to settle at 10,925.85.

Concerns around protests in Hong Kong and an Argentine currency crash amid fears of global economic slowdown, sapped investors risk appetite. Weak domestic macroeconomic data and absence of measures by the government to support economic growth also disappointed investors.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 3,245.80.

The projected upper bound is: 3,211.09.

The projected lower bound is: 3,084.32.

The projected closing price is: 3,147.70.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 30 white candles and 18 black candles for a net of 12 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 24.7347. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 23.74. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 26 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -81. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 25 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 0.870 at 3,147.600. Volume was 19% above average (neutral) and Bollinger Bands were 85% wider than normal.

Open     High      Low     Close     Volume___
3,170.8503,174.7303,136.8403,147.600 247,729,104
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,203.55 3,287.83 3,210.36
Volatility: 14 12 14
Volume: 225,318,880 209,144,080 208,555,856

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

STRAITS TIMES is currently 2.0% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 10 periods. Our momentum oscillator is currently indicating that .STI is currently in an oversold condition.

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