The INDIANB price action resembles the Bank-Nifty price, In simple, the correlation of INDIANB and Bank-Nifty has a O(1). So, In the last three sessions of Bank-nifty, there is a breakout (ascending triangle) which correlates with INDIANB and signifies the movement of the stock toward the same formation of A.T
What does it make sense?
BankNifty is going to make an advance of 22% and Stock has a beta of 1.42 which implies that for the index next move the stock will advance at least 33%. As a result of breakout with intensive expansion further 33%, cuz Index had made a breakout before the stock.
Points to be Note (Technical + Fundamental)
1. Structure- Higher-Highs formation (Ascending Triangle)
2. 1D Critical Demand Zone replusion due to Index correlation signifies fake breakout or failure of 1Week closing.
3. Market Cycle: Primary Trend with sideway distribution (1D)
4. Support: Above 50MA & 100MA
5. Resistance: Major Supply Daily & Weekly
6. Retracement Levels: 0.5 Fib ( of A.T formation)
7. Relative strength: Postive at 4H & Moderate at 1D
8. Volume: Low volumes diminishing but strong buying.
9. Beta: 1.42 aggressive
10. Weekly closing: Positive
11. Monthly closing: Negative yet, but moderate (engulfing postive candle)
1. PE: 4.5 as compared to its peer SBI having 16
2. M.Cap: lower
3. D/E Ratio: 14 Reliable in the banking sector
4. Book-Value: 0.43 Impressive and trading thrice below the B.V
5. Sales: Increased by 90%
6. Sales to OP correlation: Negative as profit is backed by other Income
7. Sales to PAT correlation: Surged by 26% YOY
8. ROCE & ROE is 5.8% vs 10.1%
9. Reserves: Increased by 80%
10. Promoter holding: they pledged the 12% YOY
11. Contingent liabilities: Extreme level
That's it!
IID-01
What does it make sense?
BankNifty is going to make an advance of 22% and Stock has a beta of 1.42 which implies that for the index next move the stock will advance at least 33%. As a result of breakout with intensive expansion further 33%, cuz Index had made a breakout before the stock.
Points to be Note (Technical + Fundamental)
1. Structure- Higher-Highs formation (Ascending Triangle)
2. 1D Critical Demand Zone replusion due to Index correlation signifies fake breakout or failure of 1Week closing.
3. Market Cycle: Primary Trend with sideway distribution (1D)
4. Support: Above 50MA & 100MA
5. Resistance: Major Supply Daily & Weekly
6. Retracement Levels: 0.5 Fib ( of A.T formation)
7. Relative strength: Postive at 4H & Moderate at 1D
8. Volume: Low volumes diminishing but strong buying.
9. Beta: 1.42 aggressive
10. Weekly closing: Positive
11. Monthly closing: Negative yet, but moderate (engulfing postive candle)
1. PE: 4.5 as compared to its peer SBI having 16
2. M.Cap: lower
3. D/E Ratio: 14 Reliable in the banking sector
4. Book-Value: 0.43 Impressive and trading thrice below the B.V
5. Sales: Increased by 90%
6. Sales to OP correlation: Negative as profit is backed by other Income
7. Sales to PAT correlation: Surged by 26% YOY
8. ROCE & ROE is 5.8% vs 10.1%
9. Reserves: Increased by 80%
10. Promoter holding: they pledged the 12% YOY
11. Contingent liabilities: Extreme level
That's it!
IID-01