Here’s this week’s news report on some of the regular (as well as crazy ass) things happening in the world!
Global Equity Market –
Inflation remains the biggest fear among investors across the globe. But, recent data supporting a reduction in unemployment led to some green ticks on US markets in the latter half of the week. Overall, the global equity market remained unstable for the week.
Crypto Currencies –
Following the crackdown by multiple regulatory authorities, crypto continues to stumble for yet another week to maintain bitcoin volatility with ranges around 38,000 USD.
Commodity Market –
Amid post-COVID pent-up demand and generous government spending, commodity prices keep soaring this week – specifically copper trading at monthly high at weekly +3%.
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Story In Focus – Who decides what I buy next? – Era of data monopoly!
In recent times, concerns about how big tech giants are using data to manipulate customer behavior are soaring. Whether it be US election tampering or China’s take on Alibaba the major concerns are still – How big the impact could be? Who decides what I want to do? What can be done to ensure a level playing field?
This week, the US, similar to what China is doing to Alibaba, is pressing Amazon toward its antitrust notion. The theme remains the same – big tech giants are exploiting data to guide customer behavior and maintain their monopoly.
But, with the recent series of crackdowns from multiple governments, the future of continued manipulation seems doomed. The result of these lawsuits would be crucial in deciding the journey for these big giants and startups building their sole business on behavior manipulations.
Companies In Focus –
- HSBC –
The British bank is all set to exit the US retail market later this year. Similar to what CITI Bank did in a few countries, including India, HSBC plans to revamp their books by shifting focus on international banking and wealth management business.
“We are pleased to announce the sale of the domestic mass market of our US retail banking business. They are good businesses, but we lacked the scale to compete,” CEO Noel Quinn said in the statement.
- Amazon –
Amazon is recently in the news because of its 3rd party selling clause – prohibiting them from “setting a price on a product or service that is significantly higher than recent prices offered on or off Amazon.” – If a vendor sells a product at a lower price outside Amazon, Amazon reserves the right to remove the vendor from its market place. This lawsuit comes as the government tries to maintain a level playing for minority businesses.
- Archegos Capital Management
The US Justice Department launches an investigation probe on the downfall of the investment firm, Archegos Capital Management. The collapse of the said firm cost an estimated loss of $10 billion to some big global banks. The most notable of the figures are, Credit Suisse having impacted with a loss of $5 billion, and Japan’s Nomura being setback with a loss of $3 billion.
Indian Market (Technical Update) –
Can we see Nifty at 14800 before seeing it at 16000 levels?
In the last analysis which was released on Wednesday i.e. 26th May’21, we mentioned that both the indices, Nifty and Bank Nifty are looking bullish and 34500 is the strong Support in Bank Nifty and 15300 is the strong support in the case of Nifty.
Post which, we saw that Nifty and Bank Nifty both were unable to break and sustain below these support levels.
Now, What’s Next?
It looks that both the indices, Nifty and Bank Nifty are a little tired after this big bullish move.
If we talk about Nifty, it was retraced back from its 100% level of Fibonacci levels i.e. it was unable to break and close above these levels and it finally closed at the same level, which was 15435.
If we look at FII and DII data, it indicates that Nifty is in the overbought zone now, we are expecting a little correction from this level and naked buying of Futures or CE is risky at the moment, it is better to buy PE if you are on the long side because anytime reversal is expected.
As per the Option chain analysis, immediate Support in Nifty is at 15400 and Resistance is at 15500.
Our overall View on Nifty is now Bearish & before seeing 16000 levels, we might see 15000-14800 levels again.
Last Friday i.e 28th May’21 we saw that Bank Nifty made a high of 35436, then dropped down to 34977, although it was unable to sustain below 35000 and it closed at 35141.
The closing of Bank Nifty below 35200 is also giving a sign of weakness as 35200 is the next immediate Resistance, and closing above these levels would have been a strong closing.
As per the Option Chain analysis, 35000 is the immediate Support and 35200 is the immediate resistance.
Note:- This is the analysis by our team & not a piece of advice. Consult your financial advisor before investing.
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That concludes this week’s global news updates.
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