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BANKBARODA possible Elliot wave countsThis stock has shown almost aligned wave counts from weekly to daily and from daily to hourly and right now its in correction area of some lower degree wave counts macd on hourly chart momentum negative cross done on hourly Price under and below RK's stopline in daily Price made neutral candle under and below 20DMA in daily Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Disclaimer. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses.
NSE:BANKBARODAShort
by RK_Chaarts
23
Basics of Elliot Waves.Hello Traders! 1. Today, we will discuss the basic market movement structure, elliotically . A recent comment on one of my ideas published pointed (indirectly) towards the need for a basic understanding of Elliot Waves for the general trading public. 2. The market moves in consistent impulsive and corrective structures . Waves 1, 2, 3, 4, and 5 together form the 1st Impulsive structure of the market. Waves A, B, and C together form the next Corrective structure of the market. What is an Impulsive Structure ? These are patterns that occur in the direction of the trend. A movement consisting of 5 smaller cycle waves and following certain set rules/guidelines set by Elliot; Wave 2 never retraces more than 100%, Wave 3 is never the shortest, & Wave 4 does not enter the price territory of Wave 1. The 3rd rule is at times compromised and that should be up for discussion some other day. More rules exist but are not required for the basic understanding of the markets. What is a Corrective Structure ? We will put this very vaguely. Whatever is not impulsive, is corrective, in laymen's terms. 3. Let's address the Impulsive structure . Waves 1, 3, and 5 are impulsive waves within the impulsive structure. Waves 2 and 4 of this impulsive structure stand to be corrective. Waves 1, 3, and 5 consist of 5 waves each. Waves 2 and 4 consist of 3 waves each. 4. Now we'll address the next Corrective structure . Wave A and C of this structure are impulsive whereas Wave B is of corrective nature. Waves in the corrective structure are very interesting. Wave A can at times consist of 5 waves as well as 3, even though impulsive, and can also be a diagonal. Wave B can sometimes contain 5 waves, when in a form of a triangle, even though corrective. Wave C always has only 5 waves and can be a diagonal as well. The corrective waves are a whole lot more complicated and require a vigorous understanding of the structures. 5. Every wave structure is part of a larger wave structure on a larger timeframe. 5 impulsive, 3 corrective waves of the smallest cycle; which will form Waves 1 and 2 of a larger cycle. Then these two waves along with 3, 4, 5, and the next correction set, will form the 1st and 2nd waves of an even larger cycle. This is how our final wave structure (basic) would look like. The world moves in harmony with progression and recession. And so do the markets. All they need is an observer. Be one. Happy observing! Profits, Market's Mechanic.
NSE:NIFTYEducation
by UnknownUnicorn27677748
7
How to subscribe to the TradingView newsletter?Hey everyone! 👋 Our weekly newsletter is built for one purpose: to keep you up to date in the markets. We include educational posts and ideas from our community, top scripts, an earnings calendar, an economic calendar, and more to prepare you for each week. How to subscribe to our weekly newsletter? 1. Go to the top right-hand side of your screen, click on the display picture, and then select “Profile settings”. 2. Then click on the “ Notifications ” tab. 3. Once you open the notifications, you will see various options under the “ Email preferences ” tab. Just check the “ Weekly digest ” option and save changes. That’s it, you are good to go! 4. Once you are done subscribing to the newsletter, just sit back, and relax. We send our newsletter each Monday morning at 9 AM . Make sure to open the next newsletter! ❤ Oh, and please feel free to send us any feedback about our newsletter. We especially want to hear if you enjoy it or if there’s anything you would like to see added! Let’s go! ❤ – Team TradingView
NSE:NIFTYEducation
by TradingView
inverted head and shoulders pattern breakout possible *stock has created a inverse pattern on daily chart *on weekly basis currently the stock is trading above the supply zone of 153-154 *if we close above 155 we will confirm pattern break *it opens up the stock for a positional target of new life-time high *initiating a positional trade in Ashok Leyland ASHOK LEYLAND CONDITIONAL BUY -WAITING FOR A WEEKLY CLOSE ABOVE 155 -OR ONE CAN LOOK TO ENTER OPITONS ASHOK LEYLAND BUY@155 (closing basis) STOP@145 TARGET@165-175-185 DISCLAIMER -this is my perosnal view -trade according to your risk appetite -manage your risk
NSE:ASHOKLEYLong
by manavtechresearch
1
The income statement: the place where profit livesToday we are going to look at the second of the three main reports that a company publishes during the earnings season, the income statement. Just like the balance sheet, it is published every quarter and year. This is how we can find out how much a company earns and how much it spends. The difference between revenues and expenses is called profit . I would like to highlight this term "profit" again, because there is a very strong correlation between the dynamics of the stock price and the profitability of the company. Let's take a look at the stock price charts of companies that are profitable and those that are unprofitable. 3 charts of unprofitable : 3 charts of profitable : As we can see, stocks of unprofitable companies have a hard enough time growing, while profitable companies, on the contrary, are getting fundamental support to grow their stocks. We know from the previous post that a company's Equity grows due to Retained Earnings. And if Equity grows, so do Assets. Recall: Assets are equal to the sum of a company's Equity and Liabilities. Thus, growing Assets, like a winch attached to a strong tree, pull our machine (= stock price) higher and higher. This is, of course, a simplified example, but it still helps to realize that a company's financial performance directly affects its value. Now let's look at how earnings are calculated in the income statement. The general principle is this: if we subtract all expenses from revenue, we get profit . Revenue is calculated quite simply - it is the sum of all goods and services sold over a period (a quarter or a year). But expenses are different, so in the income statement we will see one item called "Total revenue" and many items of expenses. These expenses are deducted from revenue gradually (top-down). That is, we don't add up all the expenses and then subtract the total expenses from the revenue - no. We deduct each expense item individually. So at each step of this subtraction, we get different kinds of profit : gross profit, operating income, pretax income, net income. So let's look at the report itself. - Total revenue This is, as we've already determined, the sum of all goods and services sold for the period. Or you could put it another way: this is all the money the company received from sales over a period of time. Let me say right off the bat that all of the numbers in this report are counted for a specific period. In the quarterly report, the period, respectively, is 1 quarter, and in the annual report, it is 1 year. Remember my comparison of the balance sheet with the photo ? When we analyze the balance sheet, we see a photo (data snapshot) on the last day of the reporting period, but not so in the income statement. There we see the accumulated amounts for a specific period (i.e. from the beginning of the reporting quarter to the end of that quarter or from the beginning of the reporting year to the end of that year). - Cost of goods sold Since materials and other components are used to make products, accountants calculate the amount of costs directly related to the production of products and place them in this item. For example, the cost of raw materials for making shoes would fall into this item, but the cost of salaries for the accountant who works for that company would not. You could say that these costs are costs that are directly related to the quantity of goods produced. - Gross profit (Gross profit = Total revenue - Cost of goods sold) If we subtract the cost of goods sold from the total revenue, we get gross profit. - Operating expenses (Operating expenses are costs that are not part of the cost of production) Operating expenses include fixed costs that have little or no relation to the amount of output. These may include rental payments, staff salaries, office support costs, advertising costs, and so on. - Operating income (Operating income = Gross profit - Operating expenses) If we subtract operating expenses from gross profit, we get operating income. Or you can calculate it this way: Operating income = Total revenue - Cost of goods sold - Operating expenses. - Non-operating income (this item includes all income and expenses that are not related to regular business operations) It is interesting, that despite its name, non-operating income and operating income can have negative values. For this to happen, it is sufficient that the corresponding expenses exceed the income. This is a clear demonstration of how businessmen revere profit and income, but avoid the word "loss" in every possible way. Apparently, a negative operating income sounds better. Below is a look at two popular components of non-operating income. - Interest expense This is the interest the company pays on loans. - Unusual income/expense This item includes unusual income minus unusual expenses. "Unusual" means not repeated in the course of regular activities. Let's say you put up a statue of the company's founder - that's an unusual expense. And if it was already there, and it was sold, that's unusual income. - Pretax income (Pretax income = Operating income + Non-operating income) If we add or subtract (depending on whether it is negative or positive) non-operating income to operating income, we get pretax income. - Income tax Income tax reduces our profit by the tax rate. - Net income (Net income = Pretax income - Income tax) Here we get to the income from which expenses are no longer deducted. That is why it is called "net". It is the bottom line of any company's performance over a period. Net income can be positive or negative. If it's positive, it's good news for investors, because it can go either to pay dividends or to further develop the company and increase profits. This concludes part one of my series of posts on the Income statement. In the next parts, we'll break down how net income is distributed to holders of different types of stock: preferred and common. See you soon!
NSE:BANKNIFTYEducation
by Be_Capy
2
Adani - A technical perspectiveHi all, hope you are trading well. It’s been a long time since I last posted. Apologies for that. 🙏 With all the buzz floating around Adani and let's see the charts from a technical perspective using supply demand, market structure, and basic S/R. Please note that I am not a fundamental analyst and hence not concerned with the underlying working structure of the company. We are going to see all the Adani companies along with the custom simple weighted chart of the Adani group. - Adani simple weighted index (excluding AWL for more data) - Adani simple weighted index (including AWL) - Adani Enterprises ( NSE:ADANIENT ) - Adani Ports ( NSE:ADANIPORTS ) - Adani Green ( NSE:ADANIGREEN ) - Adani Power ( NSE:ADANIPOWER ) - Adani Transmission ( NSE:ADANITRANS ) - Adani Gas ( NSE:ATGL ) - Adani Wilmar ( NSE:AWL ) Let's get started! 🚨 Adani simple weighted index (excluding AWL) - Plenty of demand zones on the downside - Internal structure has shifted - Structural low is still intact - HTF structure is bullish 🚨 Adani simple weighted index (including AWL) - Less data due to AWL - Structural low is intact - Approaching demand zone - HTF is bullish 🚨 Adani Enterprises - Former daily demand zone should now act as a supply - Weekly demand zone at ~2000-2400 - Reaction from the demand zone will show the intent of long-term buyers 🚨 Adani Ports - Distribution cycle complete - Range low will act as a supply - Tapped into the weekly demand zone - Need to wait for the structure to develop on the daily time frame - Flip zone at 400-430 🚨 Adani Green - Strong supply formed near 1800-2100 - Approaching weekly demand zone - Monthly demand zone at 900-1050 🚨 Adani Power - Sitting in the weekly demand zone but most likely it will breakdown - Previous swing level near 166 can also act as support - Next important demand zone at 110-140 🚨 Adani Transmission - Structural low intact - Tapped into the weekly demand zone - Important flip zone near 1460-1650 🚨 Adani Total Gas - Forming Wyckoff distribution schematic on daily - Most likely it will approach the weekly demand zone soon - Flip zone near 1460-1700 🚨 Adani Wilmar - Hovering near daily demand zone + swing level - Any lower move can trigger a sell-off to the weekly demand zone Thanks for reading. I hope you found this helpful! 😊 Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NSE:ADANIENT1!
by johntradingwick
19
Nifty - Possible long from 17420 and short from 17730-17770NIfty has given breakout on the downside from the consolidation zone and moved towards 17500, took support there and finished the week at 17600. It is highly unlikely that downside is over and that it may open with a gap up scenario even if global cues are positive. A flat open is not tradeable as Nifty might move to upside or downside and no way of knowing what it might do. Scenario 1: - NIfty opens gap up then it can possibly take resistance from 17730-17770 zone and continue its downward movement back to 17500. Highly unlikely to open large gap up tomorrow even if global cues are positive. Scenario 2: - Highlighted circle is the breakout area for NIfty from which it embarked upon a massive rally. Nifty did not go till that particular level and hence there is a chance it might give a false break below the week's low and try to trap retail traders and then take support from 17420-17450 region and then give a huge move. This is possible in case of a gap down scenario and does not mean downside is over because it should fill the gap till 17320 but probably not tomorrow. So a short maybe not initiated below 17493 but if 17400 breaks then for sure it will take support at the gap area of 17310-17340 region. Happy Trading and Best of Luck!! Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
NSE:NIFTY
by DashSam
16
Introduction to market structureHey everyone!👋 In this article, we'll dive into market structure, providing insightful examples to enhance your understanding of this concept. Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading! Market structure is a basic form of understanding how markets move. It can be seen as the flow of the price between a series of swing highs and swing lows. The market moves in trends. These trends are nothing but a combination of different structures. The market structure allows you to be in sync with the market and avoid counter-trend trading, which enhances the probability of your setups. There are broadly 3 types of structures: 1. Bullish (Uptrend) 2. Bearish (Downtrend) 3. Ranging (Sideways) Illustration: Bullish market structure Illustration: Bearish market structure Illustration: Range market structure 📈 What is an uptrend? ✅ Characterised by a bullish market structure. ✅ Formation of higher highs followed by higher lows. ✅ For an uptrend to stay intact, it must preserve its ascending structure - higher highs must follow higher lows. ✅ Lower highs are allowed if the price goes into compression or re-accumulation. 📉 What is a downtrend? ✅ Characterised by a bearish market structure. ✅ Formation of lower highs followed by lower lows. ✅ For a downtrend to stay intact, it must preserve its descending structure - lower highs must follow lower lows. ✅ Lower highs are allowed if the price goes into compression or re-distribution. ⚡ What is a range? ✅ A range is a zone where the price finds itself bouncing between two levels. ✅ These levels are - range high and range low. ✅ The size of the range is dependent on different factors such as asset class, demand-supply, volatility, etc. A lot of times, the structure won’t be as clear as you want it to be. Conversely, sometimes the structure will replicate the textbook. Hence, you need to be flexible in your approach. Sometimes, trading in range-bound markets can be challenging due to the choppiness in price movements. However, when the price action is more defined, some traders may prefer to trade the range by executing breakout trades or mean reversion trades from the range high to the range low or vice versa. It is better to combine market structure with other concepts/indicators for better results. Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Instagram , and YouTube for more awesome content! 💘
NSE:ITCEducation
by TradingView
6
What are ratios to analyse any banking stocksHAPPY REPUBLIC DAY 🇮🇳 Today we will study ratios for analysing any banking/ non- banking stock. Key Ratios are - 1. Net Interest Margin (NIM) 2. Provision Non Performing Assets (PNPA) 3. Loan to Assets Ratio 4. Return on Assets Ratio (ROA) 5. Capital Adequacy Ratio 6. Gross NPA 7. Net NPA 8. CASA Ratio 9. Cost to Income ratio --------------------------------------------------------------------- 1. Net Interest Margin (NIM) 1. Net Interest Margin = ( Investment Income – Interest Expenses ) / Average Earning Assets. 2. Positive Net Interest Margin shows that bank is earning more money in the form of interest than its cost of funding investments. 3. There are several factors that affect bank NIM. One of the most significant is interest rates. When interest rates are high, banks are able to earn more from loans and investments, which increases their NIM. When interest rates low, banks earning will loans and investments decrease, which lead lower NIM. 4. In summary, Net Interest Margin is important measure of bank's profitability and its ability to generate income from its existing assets. NIM is affected by interest rates and competition. Banks with a high NIM are generally considered strong financial position and better to grow and invest in new opportunities. Let's look at example Bank in India has total assets of ₹1,00,000 crore consist of loans and investments. The bank has total deposits of ₹80,000 crore and it pays interest rate of 4% on savings accounts and 6% on Fix Deposit The bank total interest income for the period is ₹2,400 crore which is earned by loans and investments. The bank total interest expense for period is ₹1,600 crore, which is paid to depositors. To check the NIM we take the bank net interest income (NII) of ₹800 crore (₹2,400 crore in interest income - ₹1,600 crore interest expense) and divide by the bank average earning assets of ₹90,000 crore (average of total assets and total deposits). NIM = NII / Average Earning Assets NIM = ₹800 crore / ₹90,000 crore NIM = 0.89% Bank NIM is 0.89% every ₹100 of assets the bank is earning ₹0.89 of net interest income. This NIM is a measure of the bank efficiency in generating income from assets and can be used to compare it with other banks and over time. NIM in India will be lower than developed countries due to lower lending rates and high competition among bank. -=-=-=-= 2. Provision Non Performing Assets (PNPA) 1. An asset, including a leased asset, becomes non performing when it ceases to generate income for the bank. 2. Provision for Non Performing Assets (NPA). The amount keep aside by bank, to cover it's potential losses from loans and other credit related assets that have been non performing.These provisions are made when a bank expects that some of its borrowers will default on their loans, and the bank needs to set aside funds to cover the potential loss. 3. In summary, Provision for Non Performing Assets (NPA) Banks are required to make provisions for NPA on a regular basis, quarterly basis, amount of provisions is disclosed in the financial statements. Provision for NPA is an important measure of a bank's financial health, Help bank to absorb the impact of loan defaults and manage credit risk. Provisions for NPA is closely watched by investors, analysts, and regulators, it helps them to assess the bank's credit risk. Let's look at example Bank total loans of ₹50,000 crore. ₹2,000 crore classified Non performing Assets (NPA) borrowers defaulted their payments more than 90 days. Bank required to set aside certain percentage of the NPA loans as PNPA as per the Reserve Bank of India's guidelines. The current PNPA provisioning ratio is 15%. To get PNPA we multiply the NPA loans of ₹2,000 crore with the PNPA provisioning ratio of 15%. PNPA = NPA loans x PNPA provisioning ratio PNPA = INR 2,000 crore x 15% PNPA = INR 300 crore -=-=-=-= 3. Loan to Assets Ratio 1. Loan to Assets ratio can help investors obtain complete analysis of bank's operations. Banks that have relatively higher Loan to Assets ratio banks with lower levels of Loan to Assets ratios derive a relatively larger portion of their total incomes from more diversified, noninterest earning sources, such as asset management or trading. Banks with lower Loan to Assets ratios may fare better when interest rates are low or credit is tight. 2. In summary, Loan to Asset ratio is financial metric compares bank total loans to total assets. It's used to measure bank leverage assess the level of risk associated with lending activities. Higher Loan to Assets ratio indicates that a bank is more heavily reliant on lending and is more leveraged and risky, while a lower ratio indicates that the bank is less risky. Let's look at example Bank has total assets ₹1,00,000 crore, total loans ₹70,000 crore. to get Loan to Assets Ratio we divide the total loans by the total assets. Loan to Asset Ratio = Total Loans / Total Assets Loan to Asset Ratio = ₹70,000 crore / ₹1,00,000 crore. Loan to Asset Ratio = 0.7. Bank's Loan to Assets Ratio is 0.7 / 70% (0.7*100) bank assets in form of loans. A higher Ratio indicates that bank is heavily invested in lending activities, which can be sign of more aggressive lending strategy. it's also increases the risk of default. Than higher risk of NPA. Banks required to maintain minimum level of Capital Adequacy Ratio as per the Reserve Bank of India's (RBI) guidelines. -=-=-=-= 4. Return on Assets Ratio (ROA) 1. Return on Assets = Net Income / Total Assets 2. The higher ratio means assets are well managed and low ratio means resources didn't used effectively compared to the industry and competitors. 3. In summary, ROA is financial ratio measures profitability of company in relation to total assets. It is calculated by dividing the company's net income by its total assets. This ratio is useful to compare the performance of company with its peers in the same industry. It is an important metric used to evaluate a company's overall efficiency and performance but it's important to keep in mind that high ROA not necessarily mean that company have strong financial position. Let's look at example Bank has total assets of ₹100 billion and net income of ₹5 billion. To get ROA we divide the net income by total assets. ROA = Net Income / Total Assets ROA = ₹5 billion / ₹100 billion ROA = 0.05 or 5%. Bank ROA is 5% For every ₹100 billion of assets, the bank generates ₹5 billion of net income. Higher ROA show that bank is profitable and efficient in utilizing assets. It's important to note this ratio is sensitive to the size of the bank It's better to compare the ROA of a bank with other banks of similar size. -=-=-=-= 5. Capital Adequacy Ratio 1. The Capital Adequacy Ratio helps make sure banks have enough capital to protect depositors money. 2. Banks are required to maintain a certain level of Capital Adequacy Ratio as per the regulations set by central bank to ensure that they have sufficient capital to meet the potential losses and continue their operations even in adverse situations. 3. It helps maintain the stability of the financial system by ensuring that banks can withstand in unexpected situation. Let's look at example In India, the Reserve Bank of India (RBI) sets the minimum Capital Adequacy Ratio for banks at 9%. which means that they must hold capital worth at least 9% of their total risk-weighted assets. Bank in India with total assets of ₹‎100 billion and risk-weighted assets of ₹‎80 billion must maintain minimum capital of ₹‎7.2 billion (9% of ₹‎80 billion) to meet the Capital Adequacy Ratio requirement set by the RBI. It's important to note that, the Banks with a higher Capital Adequacy Ratio are considered to have a better ability to absorb unexpected losses. -=-=-=-= 6. Gross NPA 1. Gross Non Performing Assets (GNPA) is refer to the total value of loans or advances that have been classified as Non Performing Assets. These are loans or advances the borrower has defaulted on repayment or interest for certain time. loan is classified as an NPA if the borrower has not made any payment for period of 90 days or more. 2. A high ratio of GNPA to total loans indicates a higher level of credit risk and potentially weaker financial condition for the bank. Let's look at example Bank has total loans of ₹‎100 billion and ₹‎20 billion are classified Non Performing Assets (NPA). The bank Gross Non Performing Assets (GNPA) would be INR 20 billion. we see the ratio of GNPA to total loans we get 0.2 (₹‎20 billion / ₹‎100 billion). This ratio of 20% indicates that 20% of the bank loans are classified as NPA. This high ratio may indicate the bank is facing high level of credit risk it could be cause for concern. It's important to note that Gross NPA ratio is used in conjunction with other financial indicators to understand overall financial health of bank and single indicator may not enough to make a conclusion. -=-=-=-= 7. Net NPA 1. Any financial security owned by a bank is considered an asset. The interest we pay on loans is the primary source of income for banks these loans are classified as assets for bank's. when borrowers can't repay the amount these assets are classified as Non Performing Assets (NPA) because they are not generating any income for the bank's. 2.If loan provided by bank is overdue more than 90 days from the borrower end comes under NPA. If loan amount is unpaid more than 1 year from due date then it's a doubtful debt and if it’s unpaid more than 3 years then loss of an asset or default account. Net Non-Performing Asset = Gross NPA – Provisions. Gross NPA = Total Gross NPA/Total Loans given. Impact of NPA Due to higher NPA rates, banks will suffer significant revenue losses that will potentially affect their brand image. insufficient funds, banks will have to increase the interest rates on loans to maintain their profit margin. Let's look at example Bank has total loans of ₹100 billion and ₹20 billion are classified as Non Performing Assets (NPA). The bank is required to make provisions for ₹10 billion against these NPA. The bank Gross Non-Performing Assets (GNPA) would be ₹20 billion and Net Non Performing Assets (Net NPA) would be ₹10 billion (₹20 billion - ₹10 billion). If we see the ratio of Net NPA to total loans we get 0.1 (INR 10 billion / INR 100 billion). This ratio of 10% indicates that 10% of the bank's loans classified as NPA after making necessary provisioning. This ratio gives a clearer picture of bank's financial health than just Gross NPA ratio as it takes into account the provisions made against NPA. -=-=-=-= 8. CASA Ratio 1. CASA (Current Account and Saving Account) it is measure the proportion of bank deposits that are in the form of current and savings accounts. 2. The ratio is calculated by dividing the total value of current and savings account deposits by the total deposits. It is typically expressed as percentage. Higher CASA ratio indicates that bank have larger proportion of stable deposits. This is because banks can use these deposits to fund their lending activities at a lower cost which improves bank's net interest margin. Let's look at example Bank has total deposits of ₹200 billion and ₹150 billion in form of current and savings accounts. The bank CASA ratio would be 75%. This ratio indicates that three fourth of the bank deposits are in the form of current and savings accounts which are considered the stable form of deposits. This high ratio is considered positive sign. Stable deposits can used to fund lending activities lower cost. High CASA ratio the bank will have access to cheaper funding which will improve it's net interest margin. This means that the bank will be able to offer loans at a lower rate of interest. which will make it more competitive in the market and attract more customers. And bank will also have more stable funding which will make it less vulnerable to market fluctuations and interest rate changes. Asset quality, capital adequacy play important roles in assessing a bank's overall financial condition. -=-=-=-= 9. Cost to Income ratio 1. Cost to Income Ratio (CIR) measure company efficiency by comparing it's operating expenses to it's revenue. calculated by dividing the total operating expenses by the total revenue and expressed in percentage. 2. Lower (CIR) indicates that company more efficient in managing expenses and able to generate more income for every unit of expenses. while higher (CIR) indicates that company less efficient in managing it's expenses and is generating less income for every unit of expenses. Let's look at example Bank A with a high CIR. Bank has total operating expenses of ₹10 billion and total revenue of ₹15 billion. The bank's CIR is 67% (₹10 billion / ₹15 billion). High CIR indicates that the bank is not very efficient in managing its expenses and is generating less income for every unit of expenses. The bank may need to review its cost structure and implement measures to reduce expenses in order to increase its efficiency and profitability. Bank B with a low CIR: A bank has total operating expenses of ₹5 billion and total revenue of ₹15 billion. The bank CIR is 33% (₹5 billion / ₹15 billion). This low CIR indicates that the bank is efficient in managing its expenses and is able to generate more income for every unit of expenses. The bank able to invest in growth opportunities and increase profitability. I hope you found this helpful. Please like and comment. Keep Learning, Thank you for reading!
NSE:HDFCBANKEducation
by NARAYANTAPARIA
24
If you are not 'INSIDE' you are 'OUTSIDE' In the stock market, if you are not inside, you are outside. I expect all those reading this article wants to be inside the market. So, if you want to participate in the market then you must develop a deep insight into the key market players i.e. your competitors who drive day to day movement of the market. Key Market Players:- The following are the three types of market participants. ->Retail - general public also called clients ->High Net Worth Investors - commonly known as HNI clients. ->Proprietary Trading - also called 'Pro' are firms. ->Institutions - referred to as trading organizations. Let's dive into the details of each of them listed above . Retail Investors :- They are the general public who invest or trade in the market individually with very small capital as compared to other participants. They are at the bottom of the market food chain when considered individually but in recent few years, the retail participants as a whole have seen a significant rise in numbers. High Net Worth Investors: - They are also an individual but with big sums in their pockets. They have a deeper access to the markets, inside news, and all. They don't participate in day-to-day trading. Proprietary Traders :- Also known as 'Pro 'are those firms/banks which also trade in the daily market with the firm's funds. They are at the middle of the market food chain i.e. above retail but below institutions. Actively participate in daily market movements. Institutional Investors :- They are organizations taking part actively in market movements. They are at the top of the market food chain. They can be further divided into two groups: ->FII (Foreign Institutional Investors): Institutions whose origin is outside India but still they invest in Indian markets. Actively participate in daily market movements. ->DII (Domestic Institutional Investors): Institutions whose origin is India. They are inactive in the derivatives segment. Among the participants listed above Retail, Pro & FII are actively involved in the daily market trading and encourage derivatives segment. We all have seen everyone in markets talking about FIIs that are bearish/bullish on markets but why? The above figure is of FII+Pro & Client correlation with nifty, this describes the reason why the positions of FII are significant. We can draw the following conclusion:- 1. Majority of the time FII is correct to predict the market movement. 2. Clients generally build position against FII and max times have an opposite correlation with market movements. Now, have a look at how the FII and client positions affect the market movement The above figure justifies the correlation. We can draw the following conclusions:- 1. Maximum time FII are net short in nifty whereas clients are net long in nifty. 2. When FII cover their shorts and deploys the longs we see an uptrend but at the same time, the client unwinds long and deploys shorts which are generally against the trend i.e. client likes to drive in opposite direction. 3. And when FII positions converge with the Client there is previous trend exhaustion and the arrival of a sideways market or sometimes a new trend. As of now the index is clearly explained but what about stocks how much significant is FII in stocks? To answer the above question let's take an example of a very famous stock ITC:- The above figure says that FII has increased holding in the interval of Jun2022 - Sep2022 from 12.7% to 44.5% and by the time client has decreased the holding from 44.5% to 14.8%. Does the change in position affect the stock price of ITC? let's have a look Now it's clear that FII have ultimate power because when they started to increase their holding in ITC the price shoot up during this time Public who were holding it for the last 2yrs exited when ITC has just begun to move. Hope the readers had understood the mightiness of FII and the oppositeness of the Public and also have got a deep insight about their competitors . Also, thanks to @biswapatra for requesting me to write an article on this topic. You can also suggest an topic on which you want to have analysis.
NSE:NIFTYEducation
by Chaser30
15
Concept Volume: How to plan your trade with help of volumeConcept Volume: (1): We have got a clear uptrend till now (pls check the example shared) until a good volume (red) candle comes out of nowhere, as mentioned - (1). This is the first sign of weakness in the trend, long positions need to be trailed after that, one should avoid creating long positions. & high of this zone could be monitored serious turning point zone. Here, in Aarti Industries we have seen a clear breakout. Though the trend is intact & till now we have only encountered a single speed breaker, we should consider this as a sign of caution. (2): candle completed the week of 4th Oct. 21, is the blow-off top. After the big move-up, we have got an extremely low volume Doji. How could be possible to have a Doji after a good move-up? (acceleration than a pause in the momentum) (3) After approaching again at the psychological resistance, this got rejected forming an engulfing. But before this why this reversal happened let us find it. Check the following candle- 18 Oct 21: good volume spread & good volume candle, 25 Oct 21: low volume spread & low volume candle, why? If the trend is intact it should not happen 1 Nov 21: a Doji-type candle with ultra-low volume. Are bears no more interested in taking the stock further down? 15 Nov 21: First avg. volume green candle after 5 red candles. High is marked as a psychological resistance. Now, check 28 Feb candle, it has finally broken the support (maximum traders enter here, considering the good opportunity to go short & it is ideally a good one but if entered, it has tested the patience) also, check how could be possible that this breakout candle has a low volume than the last one, in the trend? All of this is basically an anomaly. From here, the trend got reversed making 5 green candles that retraced the red ones till their resistance level as mentioned (4). From 11 April 22 we have got 5 candles, in the trend and aligned with the volume Now, if you notice the three candles formed after 30 May 22, you see the pattern is not aligned with the volume (the market is going down but the volume is decreasing along with the size of the candle---AN ANAMOLY) CASE STUDY (aarti industries)
NSE:AARTIINDEducation
by ShubhamKatiyar
4
Elliotical approach to Nifty 50 Short.Hello Traders! 1. The previous count wasn't respected by the market. So we had to check for a new count . After re-analysing the Nifty 50 market, we realised that it is the Wave C of the correction that is in progress . 2. We have a major support of 15300 . That's where we expect the market to be soon. An overall fast, impulsive movement. 3. The only unknown factor we have with us is time . The C wave can also end up being an ending diagonal or could just be a simple impulsive movement. Only time will really tell us. All we know for sure is the market should take a deep fall at least till the range of 15300. Do use proper risk management. Happy Trading! Profits, Market's Mechanic.
NSE:NIFTYShort
by UnknownUnicorn27677748
28
Interpretation Of Chart Patterns According To Market Phase.NSE:BANKNIFTY1! As we all know market moves in phases What are those phases? A primary bull or bear trend consists of two phases, specifically Accumulation phase: if the market rises after consolidating, we say that the consolidation represents accumulation (buying activity). Distribution phase: if the market declines after consolidating, we say that the consolidation represents distribution (selling activity) The main issue arises when a trader tries to know whether this consolidation is accumulation or distribution. So how can we overcome that issue? As a trader, we have to try to look for evidence that suggests whether accumulation or distribution is taking place during consolidation and out of that evidence we will discuss how we can use chart patterns to identify the phase. Chart patterns belong to one of two groups, that is, reversal or continuation. Chart patterns have intrinsic and extrinsic biases. What is the intrinsic bias of chart patterns? Intrinsic bias means the inherent bullish or bearish sentiment associated with a chart pattern. For example,1. An ascending triangle pattern has an inherently bullish bias. 2. A head and shoulder pattern has an inherently bearish bias. 3. A descending triangle pattern has an inherently bearish bias. ## A symmetrical triangle and rectangle/horizontal range pattern have an intrinsically neutral bias What is the extrinsic bias of chart patterns? Extrinsic bias refers to as location-based sentiment of a chart pattern. Like a pattern forming at some location which is historically a strong resistance zone (Market top) so if an ascending triangle forms at that location then its extrinsic bias will be bearish. Example 1: An descending triangle is an intrinsically bearish pattern, but if it is forming at a strong support location then the extrinsic bias will be bullish. Example 2: An ascending triangle is intrinsically bullish, that is, it has a bullish bias. Regardless of where this pattern occurs with respect to past price action, it will always be inherently a bullish indication, but If this bullish pattern is found at the price level of some historically significant market top/Resistance, then we say that it is extrinsically bearish, cause the pattern is located at a significant resistance. Factors determining the extrinsic bias of the pattern • Direction of the preceding trend. • Location with respect to historical extremes in price. • Location with respect to the phase of an underlying market cycle • Location with respect to other support and resistance barriers to price. • Bullish or bearish divergent formations. How can we use this extrinsic and intrinsic bias? When extrinsic bias and intrinsic bias both are in agreement then the possibility of a reversal at market tops or bottoms is significant. Similarly, for trends, when the intrinsic bias of the chart pattern is in agreement with the directionality of the trend, i.e., the trend sentiment, the potential for a continuation is usually greater. For example, The inverse head and shoulder pattern have an intrinsically bullish bias, and it is also forming at a strong support location then its extrinsic bias is also bullish. Like, If both are in alignment then we can say that this is an accumulation phase and a long entry can be initiated. ##When attempting to determine the reliability of potential reversals during the accumulation and distribution phases, or continuations during the trend phase, it is important to look for agreement between the intrinsic and extrinsic biases. If Any disagreement is seen as an indication that a reversal or continuation may be inherently weak. ##Intrinsically neutral formations, their extrinsic bias or sentiment is derived from the trend sentiment. For example, a symmetrical triangle will adopt an extrinsically bullish bias in an uptrend and an extrinsically bearish bias in a downtrend. By considering these Factors while trading chart patterns in different market phases will give an in-depth insight and helps in making more informed and rational decisions. I hope you found this helpful. Please like and comment. Keep Learning, Happy Trading!
NSE:BANKNIFTYEducation
by SANJAYPATIDAR_
79
This aluminium microcap company is ticking all the right boxes!NSE:MAANALU MAAN ALUMINIUM is a fairly established company mainly dealing in the manufacturing of aluminum products. Exclusive dealer of Aluminium ingots and Billets for Hindalco Industries Ltd. for North and South India. They also deal in scrap trading. ROE/ ROCE are good at more than ~20% Promoter holding profile is good with no pledging Debt to equity ratio and interest coverage are good YoY quarterly Revenue, net profit and EBITDA showing impressive growth YoY quarterly EBIDTA and NET margin are also improving On the charts the price broke out strongly out of a base with heavy volumes and is at an all time high Relative strength to the benchmark index is also high Sources: tijori finance, screener.in, tickertape.in Disclaimer: This is for informational purposes only. It is not intended to be a solicitation or an offer to buy or sell any security or instrument or to participate in any particular trading strategy. The views and opinions expressed here are personal. The information contained here has been obtained from sources believed to be reliable but is not necessarily complete, and its accuracy cannot be guaranteed. I may have positions in the securities or instruments shared as ideas. Do your own research OR consult a financial advisor for personalized investment advice.
NSE:MAANALULong
by UnknownUnicorn23435789
3
IS BRITANNIA THE HOTTEST INVESTMENT OF 2023?In the previous idea, we initiated a short position in NSE BRITANNIA to trade wave C of wave (4). Price reached all the given targets. - NSE Britannia – The Last Move of Correction Timeframe: Daily NSE BRITANNIA has accomplished wave C of wave (4) and started rising for an impulsive wave (5). This corrective wave (4) has a 38.2% retracement, one of the most common retracements. According to the Elliott wave principle, the impulsive cycle can only confirm after the breakout of the previous corrective wave. Price has broken out the correction channel, but wave B must break for the 5th wave to form. If the price breaks out wave B at 4407, traders can trade for the following targets: 4456 – 4500 – 4558 +. However, failure will continue its corrective formation and lead to a new low. In case of failure, we will change our position with selling targets.
NSE:BRITANNIALong
by forextidings
8
Why Traders Fail: Need for a Balanced ApproachWhy do people fail at trading? It is true that the success rate in trading is very less. You will find only a couple of good traders in a city. In my opinion it is due to the imbalance between two extreme emotions or personalities. One cannot understand or succeed unless a balance is created between them. All that is needed to create the balance throughout this adventure is your Time and meaningful effort. Here are some of those extremities that need to be recognized and balanced. 🚀 Lack of awareness Vs Hyperawareness There are people who enter in trading without knowing this business. They would throw their hard-earned money in the market just because someone else is making money here. These people have very short trading career as they lose all their money in a couple of trades. At least knowing about trading will make them shy away from high risk scenarios and hence help in surviving for long. On the other hand, there are people who have acquainted themselves to the markets to such a level that they want to know everything. They would like to learn each and every indicator and apply it on their charts, until they are left with a chaotic system which is bound to fail. Market is an ocean. You can’t know everything but can try to master a few things. 🚀 Fear of Loss Vs Greed Let me say that most of the people entering this business belong somewhere in the middle class. They always have dearth of money. So, they trade with less money and are afraid of losing it. They would either book very small profits or exit too early from good trades. But unfortunately, they won’t show this haste in losing trades. So, they book 1 point and lose 2. On the other hand, there are risk takers who have money but they are greedy. They would often book heavy losses or do not book healthy profits on time. They would only fume when their profitable trades turn into losses. Having less or more is not the question but discipline of booking profits and losses is the answer. 🚀 Stubbornness Vs Springy People would hold on to a trade or system infinitely. They would not believe in cutting small losses or mend their system for improvements. On the contrary, there are those who would keep on hopping on to one system or the other like a spring . They would book small profit/loss in one stock and buy another with higher risk. Improvement and patience are the key to success in trading. 🚀 Dependent Vs Egoist Each one of us would have bought stocks on the basis of tips from our broker, business channels or friends. Some of us would have moved on knowing the reality of tipsters while the others would still be clinging on to them. The latter would never learn a lesson before losing their entire capital. On the contrary, an egoist would only be overconfident in what he is doing. Having your ears closed in trading is a great thing but lack of flexibility is another. If the whole world says that the ship is going to sink, you can not just sit on its deck waiting for a miracle. Be an independent but flexible thinker. Thanks for reading.
NSE:NIFTYEducation
by Bravetotrade
29