This is the Monthly chart of the NF and the ES. Clearly, there is a divergence in the trajectory of the two scrips.
The NF is trading above the Previous Month's High - August is above July's High.
The ES is trading below the Previous Month's High - August is below the July High.
In the Indian context, FIIs turned buyers in mid-July and have been net buyers since.
On the last trading day of August, FIIs were a massive 4166 crores plus. And the NF rose from a low of 17442 to a high of 17845 - 400+ points intraday to close at 17828.
This pulled it up way above July's High.
Can we expect this divergence to continue in the days ahead?
At the moment of writing this, there is news that India's GDP has grown the fastest among all major economies. However, the growth was below estimates.
Yesterday was a holiday in India. The US market recorded a fall yesterday - as did the SGX Nifty. In fact, SGX Nifty started falling on Wednesday itself after the close of the Indian markets.
That said, many times the Nifty has not followed the SGX Nifty. Also, the SGX Nifty is capable of simply turning on a dime. It all depends on what the Nifty does today.
The NF is trading above the Previous Month's High - August is above July's High.
The ES is trading below the Previous Month's High - August is below the July High.
In the Indian context, FIIs turned buyers in mid-July and have been net buyers since.
On the last trading day of August, FIIs were a massive 4166 crores plus. And the NF rose from a low of 17442 to a high of 17845 - 400+ points intraday to close at 17828.
This pulled it up way above July's High.
Can we expect this divergence to continue in the days ahead?
At the moment of writing this, there is news that India's GDP has grown the fastest among all major economies. However, the growth was below estimates.
Yesterday was a holiday in India. The US market recorded a fall yesterday - as did the SGX Nifty. In fact, SGX Nifty started falling on Wednesday itself after the close of the Indian markets.
That said, many times the Nifty has not followed the SGX Nifty. Also, the SGX Nifty is capable of simply turning on a dime. It all depends on what the Nifty does today.