Tag: buy

Buy Indian Oil Corporation: Motilal Oswal
Investing in stocks requires careful consideration, and one company that has recently caught the attention of financial experts is the Indian Oil Corporation (IOC). In a recent news article, Motilal Oswal has set a target price of Rs 165 for IOC, sparking interest among investors. Let’s delve into the analysis and explore the factors influencing this target price.

Understanding Motilal Oswal’s Analysis

Motilal Oswal’s analysis provides valuable insights into the potential of Indian Oil Corporation as an investment. The target price of Rs 165 suggests optimistic prospects for IOC’s stock. To comprehend this analysis fully, let’s break down Motilal Oswal’s perspective and examine the underlying factors influencing their prediction.

IOC’s Market Position

Indian Oil Corporation stands as a prominent player in the oil industry. Its robust market position is attributed to factors such as extensive infrastructure, a diverse product portfolio, and a strong distribution network. Understanding these strengths is crucial in evaluating the company’s overall market standing and potential for growth.

Recent Developments in the Oil Sector

To make informed investment decisions, it’s essential to stay updated on recent developments in the oil sector. Factors such as geopolitical events, changes in global demand, and technological advancements can significantly impact the stock performance of companies like IOC. Let’s explore the latest news and events shaping the oil industry and analyze their implications for Indian Oil Corporation.

Financial Performance of IOC

Examining the financial performance of IOC is fundamental for investors. Analyzing recent financial reports can provide insights into key indicators such as revenue, profit margins, and debt levels. A comprehensive understanding of these financial metrics is essential for gauging the company’s stability and growth potential.

Risks and Challenges

No investment is without risks, and Indian Oil Corporation is no exception. Identifying potential risks and challenges specific to IOC is crucial for investors. Whether it’s market volatility, regulatory changes, or industry-specific challenges, understanding these factors is vital in making informed decisions.

Strategies for Investors

Armed with insights into IOC’s market position, recent developments, financial performance, and potential risks, investors can formulate strategies tailored to their goals. This section will explore different investment strategies, considering both short-term gains and long-term stability.

Comparisons with Competitors

To gain a holistic perspective, it’s essential to compare Indian Oil Corporation with its competitors in the oil industry. Analyzing IOC’s competitive advantages and disadvantages can offer valuable insights into the company’s position within the market.

Promoter/FII Holdings

As of December 31, 2023, the company’s promoters maintained a 51.5 percent stake, with Foreign Institutional Investors (FIIs) holding 8.84 percent, and Domestic Institutional Investors (DIIs) holding 9.89 percent.

Quick Review:
1. Is Indian Oil Corporation a safe investment?
  - Addressing the safety of investing in IOC and factors contributing to its stability.
2. How do global economic trends impact IOC’s stock?
  - Explaining the correlation between global economic trends and IOC’s stock performance.
For detail study click here
25 January, 2024
Best Stocks Under 100 rs in 2023
When looking for stocks under 100 rupees, it is very important to conduct thorough research and analysis of the company’s financials, management, and competitive position in the market. It is important to note that investing in the stock market always carries a certain level of risk, and it is important to diversify your portfolio to reduce risk. Before making any investment decisions, it is recommended to consult with a financial advisor or conduct your own research to make informed decisions.

1. GEE LIMITED

GEE Ltd(formerly General Electrodes & Equipments Ltd),has been engaged in manufacture of welding electrodes. In spite of the adverse situation in the industry, company’s turnover for the year 2002-03 looked very impressive as it was increased about 50% compared to the previous year.

Fundamental Analysis
- Market Cap ₹ 173 Cr.
- Debt ₹ 91.3 Cr.
- ROE 8.48 %
- Sales growth 27.0 %
- EPS ₹ 6.38
- Stock P/E 10.4
- Industry PE 20.6
- ROCE 10.3 %
- Promoter holding 73.6 %
- Pledged percentage 0.00 %
2. Shipping Corporation of India Ltd

Shipping Corporation of India Ltd (SCI) is one of India’s largest shipping in terms of Indian flagged tonnage. The company is involved in the business of transporting goods.

Fundamental Analysis
- Market Cap ₹ 4,422 Cr.
- Debt ₹ 2,912 Cr.
- ROE 9.53 %
- Sales growth 25.1 %
- EPS ₹ 12.9
- Industry PE 5.32
- Stock P/E 7.38
- ROCE 8.47 %
- Promoter holding 63.8 %
- Pledged percentage 0.00 %
3. Calcutta Energy Supply Corporation

CESC Ltd (CESC) is India’s first fully integrated electrical utility company ever since 1899, engaged in generating and distributing power. It serve 3.5 million customers within 567 square kilometers in Kolkata, Howrah, Hooghly, North and South 24 Parganas, delivering safe, cost-effective and reliable energy to the consumers. The Company is primarily engaged in generation and distribution of electricity.

Fundamental Analysis
- Market Cap ₹ 9,073 Cr
- Debt ₹ 14,305 Cr.
- ROE 13.4 %
- Sales growth 13.9 %
- EPS ₹ 10.1
- Industry PE 18.6
- Stock P/E 6.80
- ROCE 12.8 %
- Promoter holding 52.1 %
- Pledged percentage 0.00 %
4. L T Foods Ltd

LT Foods Ltd is an India-based company. The company is engaged in the manufacture and sale of rice under the brand DAAWAT. They also manufacture and market parboiled rice. Their product is marketed in more than 50 countries.

Fundamental Analysis
- Market Cap ₹ 3,698 Cr.
- Debt ₹ 1,392 Cr.
- ROE 15.6 %
- Sales growth 31.4 %
- EPS ₹ 10.8
- Industry PE 44.1
- Stock P/E 10.7
- ROCE 14.8 %
- Promoter holding 52.3 %
- Pledged percentage 0.00 %
5. Time Technoplast Ltd

Time Technoplast Ltd is an India-based company, which is engaged in manufacturing of polymer & Composite products. The company has operations in local as well as in foreign countries.

Fundamental Analysis
- Market Cap ₹ 1,939 Cr.
- Debt ₹ 892 Cr.
- ROE 9.44 %
- Sales growth 16.1 %
- EPS ₹ 9.33
- Industry PE 28.9
- Stock P/E 9.19
- ROCE 12.2 %
- Promoter holding 51.3 %
- Pledged percentage 5.42 %
Also Read | 20 Important Terms in Stock Market
22 April, 2023
Benefits of investing in Stock Market

Investing in the stock market can offer several benefits. But these benefits also comes with lot of risk. Below are the list of some of the major benefits which can give you a clear picture on it.

1. Potential for Capital Appreciation:

Stocks have the potential to provide capital appreciation, which means that your investments can increase in value over time. As companies grow and become more profitable, their stock prices may rise, providing investors with capital gains. By investing in a diversified portfolio of stocks, you can increase your chances of earning strong returns over the long term.

2. Diversification:

Investing in the stock market can help you diversify your investment portfolio, reducing the risk of being overly exposed to any one particular asset class. By investing in a range of stocks across different industries and sectors, you can reduce the risk of your portfolio being negatively impacted by factors that affect only one industry or sector. This can help to smooth out the overall performance of your portfolio, making it more stable and predictable over the long term.

3. Dividend Income:

Some companies pay dividends to their shareholders, which can provide a steady stream of income for investors. Dividends are payments made by companies to their shareholders out of their profits, and can provide a regular source of income for investors. While not all companies pay dividends, many established, financially healthy companies do, and this can be a source of income for investors seeking a steady, reliable stream of returns.

4. Inflation Hedge:

Investing in the stock market can also help to protect your portfolio against inflation. Over the long term, stocks have historically provided higher returns than many other asset classes, such as bonds or cash. This means that, over time, your investments in stocks may increase in value at a rate that outpaces inflation, helping to maintain the purchasing power of your portfolio.

5. Access to Professional Management:

By investing in mutual funds or exchange-traded funds (ETFs), you can benefit from the expertise of professional fund managers who research and select stocks on your behalf. This can help to save time and effort for individual investors, who may not have the time or resources to research individual stocks themselves. By investing in professionally managed funds, you can benefit from the expertise of experienced managers who are dedicated to finding the best investment opportunities in the market.

6. Liquidity:

The stock market provides a high level of liquidity, meaning that it is easy to buy and sell shares in publicly traded companies. This means that, if you need to access your funds quickly, you can do so relatively easily. This is in contrast to other investment options, such as real estate or private equity, which can be more difficult to buy and sell quickly.

It is important to note, however, that investing in the stock market is not without risks. Stock prices can be volatile, and the market can experience significant fluctuations over short periods of time. As such, it is important for investors to have a long-term perspective when investing in stocks. It is also important to do your own research and seek advice from a financial professional before making any investment decisions.

In summary, investing in the stock market can provide a range of benefits, including potential for capital appreciation, diversification, dividend income, inflation protection, access to professional management, and liquidity. While investing in stocks can be risky, with careful research and a long-term perspective, it can be a valuable component of a well-diversified investment portfolio.

Also Read | Best Sectors for Investment

23 February, 2023
20 Important Terms in Stock Market
Today we are discussing the most important stock market terms which are essential for each & every beginner of the share market to know about it. When I entered the world of stock market then I search lots of words on google which consume plenty of my time. So, here we thought of explaining some of the important terms of the stock market.

https://www.youtube.com/watch?v=tHOssUgrkQA

Here are some stock market terms :
1. Buy – Buy is a term used to describe the purchase or acquisition of an item or service that’s typically paid for via an exchange of money or another asset. When buyers look to acquire something of value, they assign a monetary value to that product or service.
1. Sell – The term sell refers to the process of liquidating an asset in exchange for cash. In investment research, sell refers to an analyst’s recommendation to close out a long position in a stock because of the risk of a price decline.
1. The Bid Price – The bid price is the price that an investor is willing to pay for the security.
For example if an investor wanted to sell a stock, he or she would need to determine how much someone is willing to pay for it. This can be done by looking at the bid price. It represents the highest price that someone is willing to pay for the stock.
1. The Ask Price – The ask price is the price that an investor is willing to sell the security for.
For example if an investor wants to buy a stock, they need to determine how much someone is willing to sell it for. They look at the ask price, the lowest price someone is willing to sell the stock for.
1. Bid-Ask Spread – Bid-Ask spread is typically the difference between ask (offer/sell) price and bid (purchase/buy) price of security. Ask price is the value point at which the seller is ready to sell & bid price is the point at which a buyer is ready to buy.
  When the two value points match in a marketplace, i.e. when a buyer and a seller agree to the prices being offered by each other, a trade takes place. These prices are determined by two market forces – demand & supply, and the gap between these two forces defines the spread between buy-sell prices.
1. Bull Market – A bull market is the condition of a financial market in which prices are rising or are expected to rise. The term bull market is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.
1. Bear Market – A bear market is a situation when the stock market experiences price declines over a period of time. Generally, a bear market is declared when the price of an investment falls at least 20% from its high.
In other words, a trend of falling stock prices for an extended period is considered a bear market.
1. Stop Loss – Stop Loss can be defined as an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in trade. The concept can be used for short-term as well as long-term trading. This is an automatic order that an investor places with the broker/agent by paying a certain amount of brokerage. Stop Loss is also known as ‘stop order’ or ‘stop market order’.
1. Lot Size – Lot size refers to the quantity of an item ordered for delivery on a specific date or manufactured in a single production run. In other words, lot size basically refers to the total quantity of a product ordered for manufacturing .
For Example When we buy a pack of six chocolates, it refers to buying a single lot of chocolate.
1. Market Order – A market order is an order to buy or sell a stock at the market’s current best available price. A market order typically ensures an execution, but it doesn’t guarantee a specified price. Market orders are optimal when the primary goal is to execute the trade immediately. A market order is generally appropriate when you think a stock is priced right, when you are sure you want a fill on your order, or when you want an immediate execution.
1. Limit Order – A limit order is an order to buy or sell a stock with a restriction on the maximum price to be paid or the minimum price to be received (the limit price). If the order is filled, it will only be at the specified limit price or better. However, there is no assurance of execution. A limit order may be appropriate when you think you can buy at a price lower than—- or sell at aprice higher than—– the current quote.
1. Day Order – A day order is defined as an instruction from a trader to their broker, to buy or sell a certain asset. Setting a day order means that the deal has to be executed if an asset hits a specified price at any point during the trading day on which the order is made. The day order will expire if the price specified in the order is not met by time the market closes.
1. Volatility – Volatility measures the risk of a security. It is used in option pricing formulas to gauge the fluctuations in the returns of the underlying assets. Volatility indicates the pricing behavior of the security and helps estimate the fluctuations that may happen in a short period of time.
1. Averaging Down – When a trader purchases an asset, the asset’s price drops, and if the trader purchases more,it is referred to as averaging down. It is called averaging down because the average cost of the asset or financial instrument has been lowered. Because of this, the point at which a trade can become profitable has also been lowered.
15. Capitalization – Market capitalization is one of the most important characteristics that helps the investor determine the returns and the risk in the share. It also helps the investors choose the diversification criterion.

16. IPO – Initial Public Offering is the process by which a private company can go public by sale of its stocks to the general public. It could be a new, young company or an old company which decides to be listed on an exchange and hence goes public.

17. Portfolio – A collection of investments owned by the investor is called a portfolio. An investor may have just one stock or multiple securities in a portfolio. It contains a diverse range of financial instruments like shares, bonds, futures, options, etc.

18. Dividends – Dividend is a part of profit distributed by a corporation among its shareholders. When a company earns profit during a financial year, a part of that profit is usually distributed as dividend among its shareholders.

19. Agent – An agent is a stock brokerage firm which does the buying/selling of shares on behalf of the investor in the stock market.

20. SEBI – SECURITIES And EXCHANGE BOARD OF INDIA is the regulator that oversees the stock market in India. It provides a platform for investors and traders to trade efficiently, and for companies to raise capital fairly. It protects the interests of the investor and ensures accurate information is provided to the investors.

Also Read | What is RSI in Stock Market
6 February, 2022
How to Close Demat Account
When you are interested in the share market the first thing what you do is open a demat account to invest or trade. But as time passes we forget or don’t have time for trading. Then there is time you do not use your Demat account for a long time but you have to pay the charges and the demat account annually. It is the right time or good idea to close your inactive demat account. If there are active balances, they can be consolidated into one account and remaining redundant demat accounts can be closed. Closing a Demat account involves visiting the DP office or branch by any Demat account holders & submission of requisite forms & documents.

Required Information for Closing Demat Account:
1. DP ID & Client ID
2. KYC detail
3. Reason for closing Demat account
4. Is there more than one person holding the demat account ? then all holders must sign a closure form.
Procedure Of Closing Demat Account:

1. FORM:

The account holder can download the form from the website of the depository participants or DP.

2. DETAILS:
The following details need to be mentioned:
- DP ID and Client ID
- Existing details like name & address – it should match records.
3. Transfer:

If the demat account has any balance (holdings), details of the account to which this balance needs to be transferred must be mentioned in the form. The transfer can also be carried out by filling up a delivery instruction slip (DIS) before closure of the account.

4. There are no shares in the account:

To close your account, the foremost thing is to ensure whether there are any shares in the account. If there are, you need to transfer them to another account. You need to make sure your Demat account is empty before you can decide to close it.

5. Submit The Application:

Once the form is submitted and is in order, it takes 7 to 10 business days to close the account.

Remember to this point before closing the Demat account:
- If the account has any negative cash balance, it must be settled before submitting the request for its closure.
- Unused delivery instruction booklet slip should be submitted back to the DP.
6 December, 2020
8 Mistakes That Destroy Investors Returns
1. OVERTRADING:

The financial media promotes overtrading. Because if you’re not trading you’re not trying, right? Wrong. They create exciting stories about where markets will move and why. For many investors, the desire to play outweighs the desire to win. They rather medicate their boredom by making trades and hopping on the latest hot trend. The best traders are much less active than you’ve been led to believe. They aim to profit by riding long-term trends that play out over months and years, not minutes and hours. Trading on such short time frames gets you nowhere.

THE BEST TRADERS:
- On average, trade each market only 1-3 times per year
- Do not make predictions, but follow trends
- Do not let short-term volatility shake them out of their positions
- Do not feel the need to trade every day, every week or month; only when they see opportunity
2. GOING AGAINST THE TREND:

We all need a trend to make money. If we buy at price A, then we must sell at a higher price B in order to profit. Betting against trends is not only unnatural, but inherently unprofitable. Surfers do not try to ride waves out to sea. Those that do, wipe out – and look ridiculous. Traders do not make profit by holding long positions in downtrends or short positions in uptrends. In trading, the only thing that matters is price. Our job is to measure it and align with each market’s trend. How we do this doesn’t matter.

3. LETTING LOSSES RUN:

You must have an exit point for every investment you hold. Without one, whether you admit it or not, all of your money is at risk. Ya gotta know when to let it go. This goes for everything in life. If ascertain food doesn’t agree with your stomach, stop eating it. If an exercise gives you pain, stop doing it. If you’re dating a person who makes you miserable, break up with them and move on. When you let losses run, you waste resources – namely, time and money. But you also miss out on other opportunities. Exiting losing investments frees up your capacity to be deployed to new and possibly better opportunities in other markets or stocks

4. CUTTING WINNERS EARLY:

As the old saying goes: “If it ain’t broke, don’t fix it”. Investors are too eager to book gains, especially those that come quickly. Our lizard brain likes being right and feeling smart. When one of our investments shows a profit, our lizard brain wants us to quickly ring the register. This behavior comes at a cost though. Like pulling our flowers before they bloom, cutting winners inhibits us from generating huge gains. If you want big profits, you must hold your winners and let them grow. Investments do not always grow into big winners, but you allow them that chance. One or two big winners can make your year or even your career. You may be tempted to pull a George Costanza and go out on a high note, but George was one of the biggest losers in TV history. Selling your winners keeps your profits small and, thus, from major investing success.

PROFIT-LIMITING TACTICS INCLUDE:
- Selling a position soon after it becomes profitable
- Selling profit targets
- Selling volatility targets
- Selling price targets
5. IGNORING YOUR RISK TOLERANCE:

If you know how much pain you can take, you increase your odds of survival and winning Knowing your pain threshold allows you to grow at your desired speed. If you want to grow fast, you must take on more risk, but with more risk comes higher volatility and larger drawdowns. If you’re OK with this, great! If and when your performance becomes volatile, you won’t abandon your plan. As an investor, you want to stay away from your pain threshold or “uncle point” – the point at which you lose all faith in your plan. If your plan delivers too much volatility (especially on the downside) then you risk losing your discipline.

ADVANTAGES OF RISK AWARENESS:
- Lower stress
- Lower risk of aborting your plan
- More capable of setting and managing performance expectations
6. NOT DIVERSIFYING:

What’s the point of diversification? To reduce your portfolio’s maximum loss below that of each individual investment’s. People prefer picking winners and betting it all. The possibility of making a lot of money in a short amount of time attracts many people to this strategy. Think: the lottery. In most years, a diversified portfolio rarely beats the absolute performance of the best performing market(s) or stock(s). Consistent underperformance in the short-term can be too much to bare for some investors. So, rather than striving for steadier long-term results by building a portfolio of dierent markets and strategies, they choose to move all of their money from one market to the next attempting to catch a big winner. This strategy inherently places more emphasis on Market-timing instead of diversification.

BENEFITS OF DIVERSIFICATION:
- Rather than trade one market and experience all of the swings in that instrument, diversifying helps create a smoother ride.
- By having a large number of markets in the portfolio, you can ride the ones on the move and avoid the choppy ones
- Risking a small amount on each position, you do not have to win on every trade. You can still win even with 30-40% winners.
7. FOCUSING TOO MUCH ON WINNING PERCENTAGE:

Winning percentage matters, but so does the size of your winners. The combination of your winning percentage and average winner size tells you if you have a good strategy. No one can accurately pick winners above a 70-80% rate for an entire career. Not happening. Has never happened. Will never happen. But it doesn’t need to happen. The best traders can produce win rates of only 30-40% and still produce huge profits. How? They make up for their low winning percentage by letting their winners run. They do not cap their profit potential. If they did, then they’d have to be much more accurate in order to maintain their large profits

8. PAYING TOO MUCH ATTENTION TO NEWS AND “EXPERTS”:

Convincing media outlets can force you to jump o-your plan, often at the wrong times. TV and online personalities pitch their ideas every single day. Their job is to get you to tune in. Their strategy is selling certainty – making you believe they know what’s coming next. Investors without a plan of their own become susceptible to falling hard for convincing stock picks-jumping from one idea to the next. Media only focuses on 1) what markets to trade and 2) when to enter. They never talk about position sizing or exit methodology to protect your capital if/when the market goes against you. Investors must not concerned with pie in the sky ideas. They first must have a plan of their own and then be able to tune out other people’s opinions. When you have a plan, you already have all you need to be successful.

Also Read | Best 5 Sites for Indian Stock Market Analysis
4 December, 2020
CHART FORMATIONS

Chart patterns are the basis of technical analysis that requires a trader to know exactly what they are looking at, as well as what they are looking for. A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern study plays a larger role during the technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Technical analysts have long used price patterns to examine current movements and forecast future market movements.

The assumption is made that trading results can be improved when trading skills are improved. This requires practice! Surely any time spent learning to trade on past historical data, will not be wasted when it comes to preparing to trade for the future.

TYPES OF CHART FORMATION:

Here you will learn some types of chart formations. These formations will help you to improve your trading skills.

1. TRENDLINES:

Trendlines shows the direction & speed of price, and also describes the chart patterns during periods of price contraction. Let’s discuss about which types of trendlines we can drawn:

a. INCLINING TRENDLINE

                    A straight line is usually drawn to define an uptrend against or through price bar low.

b. DECLINING TRENDLINE

A straight line usually drawn to define a downtrend against or through price bar high.

c. SUPPORT

                                   In general terms, the Support level is a price point on the chart where the traders expects maximum demand (in terms of buying) coming into the stock/index. Typically, support can be identified on a chart by a previous set of lows.

d. RESISTANCE

                                        Resistances are used by traders to refer to price level on the chart. A horizontal ceiling where the pressure to sell is greater than the pressure to buy. Therefore, an increase in price is reversed and prices revert downward. Typically resistance can be located on a chart by a previous set of highs.

2. CHANNELS:

a. INCLINING CHANNELS

                                              The inclining channel is a formation with parallel price barriers along both the price ceiling and floor. Unlike the sideways channel the inclining channel has an increase in both the price ceiling and price floor.

b. DECLINING CHANNEL

                                    A descending channel is drawn by connecting the lower highs and lower low of a security’s price with parallel trendlines to show a downward trend.

c. HORIZONTAL OR SIDEWAYS CHANNEL

                                       A horizontal or sideways is a formation that features both support and resistance. Support forms the low price bar, while resistance provides the price ceiling.

3.TRIANGLE:

a. SYMMETRICAL TRIANGLE

                             A symmetrical triangle is a chart pattern characterized by two converging trend lines connecting a series of sequential peaks and troughs. These trend lines should be converging at a roughly equal slope.

b. ASCENDING TRIANGLE

                              A continuation pattern. Price contracts with level swing highs (short term resistance) and higher swing lows (rising trendline) towards a single point. The pattern is confirmed on a break of short term resistance, usually occurring in the final third of the pattern.

c. DESCENDING TRIANGLE

                                 A Continuation pattern. Price contracts with lower swing highs (falling trendline) and level swing lows (short term support) towards a single point. A pattern is confirmed on a break of short term support, usually occurring in the final third of the pattern.

d. PENNANT TRIANGLE

                                      A continuation pattern. Price forms a short term symmetrical triangle pattern (smaller scale than the usual symmetrical triangle). The pattern is confirmed on a break of the pennant in the continuation direction.

4. WEDGES:

a. RISING WEDGE

                                  A continuation or reversal pattern. Price forms higher swing highs and higher swing lows which both converge towards one point. The pattern is confirmed on a break of the lower trendline of the pattern.

b. FALLING WADGE

                             A continuation or reversal pattern. Price forms lower swing highs and lower swing lows which both converge towards one point. The pattern is confirmed on a break of the upper trendline of the pattern.

5. FLAG:

                           A continuation pattern. Price forms a short term consolidation, tilted against the direction of the market trend, between approximately parallel sloping support & resistance. The pattern is confirmed on a break of the pattern in the continuation direction.

6. DOUBLE TOP:

                                    A reversal pattern at the top of an uptrend. Price forms to highs at approximately the same price level. The pattern is confirmed on a break of the intermediate swing low.

7. DOUBLE BOTTOM:

                                          A reversal pattern at the bottom of a downtrend. Price forms two swing lows at approximately the same price level. The pattern is confirmed on a break of the intermediate swing high.

8. TRIPLE TOP:

                             A reversal pattern at the top of an uptrend. Price forms three swing highs at approximately the same price level. The pattern is confirmed on a break of the lowest of the intermediate swing lows.

9. TRIPLE BOTTOM:

                                     A reversal pattern at the bottom of a downtrend. Price forms three swing lows at approximately the same price level. The pattern is confirmed on a break of the highest of the intermediate swing highs.

10. ROUNDED TOP:

                               Anticipate change in price from up to down.

11. ROUNDED BOTTOM:

                                        Anticipate a change in price from down to up.

12. HEAD & SHOULDERS:

                                        A reversal pattern at the top of an uptrend. Price forms a swing high, a higher swing high, and a lower swing high. The pattern is confirmed on a break of the neckline – the line joining the intermediate swing lows.

13. INVERTED HEAD AND SHOULDERS:

                                            A reversal pattern at the bottom of a downtrend. Price forms a swing low, a lower swing low, and a higher swing low. The pattern is confirmed on a break of the neckline – the line joining the intermediate swing high.

24 November, 2020
MOVING AVERAGE
Definition:

              “ A moving average is simply the average value of data over a specified time period, and it’s used to figure out whether the price of a stock or a commodity is trending up or down. Although simple to construct, moving averages are dynamic tools, because you can choose which data points and time periods to use to build them. For instance, you can choose to use the open, high, low, close or midpoint of a trading range and then study that moving average over a time period, ranging from tick data to monthly price data or longer.”

          Moving Average (MA) is a stock indicator that is commonly used in technical analysis. Technical Analysis is more important than Fundamental Analysis. Moving Average is one of the most popular techniques. moving averages that are used in timing a financial market. These averages are employed to detect the direction of the stock price trend and identify turning points in the trend in real time.

                  Moving Average smooth the price data to form a trend- following Indicator. They do not predict price direction, but rather define the current direction with a lag. Moving Average is primarily the summary of momentum & trend. Moving average reduces the noise in the price and also helps to follow trends.

Popular Time Period Of Moving Average:
1. 10 Period MA
2. 20 Period MA
3. 50 Period MA
4. 200 Period MA
Moving Average COMBINATION:

This is the main calculation

Sr.No. DAILY WEEKLY

1 10 SMA 2 SMA

2 50 SMA 10 SMA

3 100 SMA 20 SMA

4 200 SAM

MOVING AVERAGE SETUP FOR:

DAILY INCOME TRADING (DIT)
1. I put 10 EMA, 21/20 SMA & 50 SMA on the daily chart.
2. If 10 below 20/21 below 50 I consider that stock is trading in the down trend & I focus on short trades.
3. If 50 below 20/21 below 10 I consider that stock is trading in the up trend & I focus on long traders.
4. Apply your strategy & take your trade accordingly.
TYPES OF MOVING AVERAGE:

The most popular type of moving averages are Simple moving average & Exponential moving average. These moving average uses for identifying the trend of the market.

a. SIMPLE MOVING AVERAGE

                   SMA is the easiest moving average to construct. The Simple Moving Average (SMA) is calculated by adding the price of an instrument over a number of time periods and then dividing the sum by the number of time periods. The SMA is basically the average price of the given time period, with equal weighting given to the price of each period. Most moving averages are based on closing prices

CALCULATING SIMPLE MOVING AVERAGE

                              If you plotted a 5 period simple moving average on 1hour chart, you would add up the closing prices for the last 5 hours, then divide that number by 5.

Example:

A 5-day simple moving average is calculated by adding the closing prices for the last 5 days and dividing the total by 5. 10+ 11 + 12 + 13 + 14 = 60 (60 / 5) = 12

b. Exponential moving average

                          Exponential Moving Average can be specified in two ways- as a percent based EMA or as a period based EMA. A percent based EMA has a percentage as its single parameter. A period based EMA has parameters that represent the duration of the EMA.

CALCULATING EXPONENTIAL MOVING AVERAGE

EMA = K * (Current Price – Previous EMA) + Previous EMA

K: The weighting factor the EMA

K = 2/(n+1)

Where:

n = the selected time period
16 October, 2020