Smart Money Footprints in KIRLOSBROS: Key Demand Zone

4 days agoHave you ever wondered where the big players, like mutual funds and foreign institutional investors (FIIs), are placing their bets? Spotting these "smart money" moves can provide incredible trading opportunities. In this analysis, we'll walk through the June 2024 quarter smart money movement in Kirloskar Brothers Ltd. and how you can use demand zones to potentially ride the wave alongside them.

What is Smart Money?
Smart money refers to institutional investors who have the expertise and resources to analyze market data on a deep level. They usually make moves based on significant market events. In the case of Kirloskar Brothers, mutual funds have increased their holdings from 7.67% to 7.92%, while FIIs raised their stake from 4.11% to 5.03% in the June 2024 quarter. The number of FIIs also rose, indicating growing interest.

🌍 Why Should You Care?
When institutional investors increase their positions, it's often seen as a sign of confidence in the company's future performance. But how can you ride these moves as a trader? The answer lies in the demand zones, which are the footprints of smart money.

What Are Demand Zones?
Demand zones are areas where buying pressure has overwhelmed selling pressure, causing prices to rise.

For Kirloskar Brothers Ltd., the stock is currently trading inside a weekly demand zone and has already reacted to a daily demand zone. If you check the chart, you'll notice that the daily demand zone is nested within the weekly demand zone, increasing the significance of this area.

When different demand zones from various time frames align, it makes the trade more reliable.


How to Plan Your Trade

• Entry: You can look for a buy signal near the daily demand zone.
  
• Stop Loss (SL): Place your SL just below the daily demand zone, with a small buffer.
  
• Target: Aim for a minimum of 1:2 Risk to Reward (RR) ratio. Until this target is hit, there are no significant supply zones on the daily and weekly time frames, making this an attractive trade setup.
  

🔥 Final Thoughts

Smart money leaves clues, and demand zones are often the footprints they leave behind. If you're new to trading, using these zones to guide your trades can offer a structured and informed approach to the markets. Remember, this is a study-based analysis and is for educational purposes only. Always conduct your own research before making any trade, and note that I’m not a SEBI registered analyst.

📊 Keep learning, keep growing!

"Trading is like building muscle. The more disciplined you are, the stronger you become!"

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