S&P upgrades India rating to Stable – No Big Deal !

The big news for today which led to the sharp jump and short covering in Nifty was S&P upgrading India to stable and BBB-

 

Now suddenly there will be a lot of biased opinions.

 

Bullish Bias – S&P upgrades India. Wow now you see how the dollars will flow into India.

 

Bearish Bias – S&P upgrades India. Sell on News. Ab to top banega dost.

 

Let us look at the movement in Nifty in last 3 years with S&P ratings.

 

By the way i believe a stable rating only implies no downgrade in next 2 yrs most probably and so is not really a big upgrade in ratings. ( Now thats confusing 😉

 

S&P India Rating

 

This is how it looks.

 

  1. Post S&P downgrade of US Nifty fell 10% but recovered to same prices in a few months.
  2. Post S&P downgrade of India it fell 5% in quick time and recovered back to same prices in weeks and the rally continued again.
  3. Post S&P upgrade today you can make your bet where it goes but i doubt it is a deciding factor.

 

Also if you want more data below is the history of S&P ratings on India. Did not really find a good co-relation.

 

 

S&P India Ratings

 

 

As mentioned in our view today morning. The preferred scenario is 7800-8200 for some time.

 

We initiated a buy at 7865 on spot and closed it a nice 70-100 points in the day in our QuickGains Service.

 

 

 

 

We have just released our Technical Trades October 2014 report.

Contains View on Nifty/Midcap Index/SmallCap index.

Top Midcap Conviction bets.

Smallcap Ideas.

We will be adding more ideas in coming week.

You can subscribe the report at Rs 1999.

https://www.instamojo.com/noooreshtech/technical-trades-october-2014/

Alternatively you can also go for membership to Technical Traders Club for Half Yearly/Annual membership to get much more benefits. The above report comes as one of the benefits of Technical Traders Club Membership.

https://www.nooreshtech.co.in/2014/09/technical-traders-club-membership-half-yearly-annual.html

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.