India’s Macro Economics & How to Trade Stock Pattern Failures
In this episode we will quickly glance through what India’s macro economic picture looks like for the last 12 months.
– Inflation has been falling slowly over the last year, this fall in price has created the opportunity of rate cuts by the RBI. As we know when rates are cut, corporate India is fuelled to take more loans and over a a few quarters the economy expands.
– Interest rates have fallen lower.
– The Fiscal deficit has been falling consistently
– The rupee however has depreciated severely over the last year
– Then of course there is the good news, oil has plummeted. But this is not the best thing because a lot of India’s exports rely of oil bringing our margins down.
Please watch the video for the analysis of Nifty and a handy pattern trading tip.
Source and graphic credits to Economic times: http://articles.economictimes.indiatimes.com/2015-05-06/news/61865413_1_narendra-modi-govt-indian-economy-modi-government