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How to find a BREAKOUT that has a high probability of success?The probability of a breakout getting failed is much higher than it's success rate.(A STOCK AT REST TRIES TO BE AT REST AND THE ONE IN MOTION TRIES TO BE IN MOTION like NEWTON's First Law Of Motion) But breakout trades are the most rewarding trades in stock market. So...if there was a method to find out a high probable successful breakout then it would have been a shade better to make money in the stock market. Here I am with a tried and tested strategy to differentiate a fake breakout and a successful one: FOLLOW the below steps: 1.Choose a stock from an up-trending sector (At present sectors like ENERGY, PSUs, REALTY, FINANCIALS AND AUTO (Just started) are examples of up-trending sectors). The reason for choosing a sector which is up-trending is that the liquidity is high in those sectors and thus increases the chance of the breakout by one shade. 2.The stock should be above 50 week EMA and above 200 EMA on a daily time frame and RSI should be above 60 (In daily time frame) This is the reason why HEROMOTOCORP Trade is struggling a lot as it is below EMA 200. 3.The stock should breakout from a consolidation of STAGE 1 structure. And if the stock is in prior uptrend followed by a consolidation and then a breakout again increases the chances like the recent one in RELAXO FOOTWEARS. 4.If the stock breaks out of multiple patterns like INVERTED HEAD AND SHOULDERS,TRIANGLE,STAGE,PARALLEL CHANNEL,TRENDLINE(The more the number of patterns being broken the better the breakout is) One example of this is TRIVENI ENGINEERING Trade that I shared 5.The breakout should be backed with high volumes (AT LEAST EXCEEDING 20 MA) 6.The closing of the breakout should be strong (NO long wicks) One more example I have is of INDIAMART Trade that I shared applying most of the concepts discussed above. NOTE: The above discussed method only increases the probability of a breakout to be successful as no strategy in the market gives 100% successful trades, so managing the risk is as important as the strategy and I will post a tutorial soon for this also. FOLLOW me to stay updated as soon as I upload it here. Till then, HAPPY TRADING :)
Editors' picks
NSE:GRSEEducation
by keshevdugar
119
HCLTech (Weekly Breakout Stock)HCLTech can give a breakout above the 1377 level. The stock needs to close above the 1377 level. The chart looks good on weekly and monthly time frames. It has a possible upside of 1483 and 1650. One can place a stop loss of 1357 on a weekly closing basis. The level of 1377 can act as a support zone. Also, a round bottom pattern can be seen on a weekly time frame. Disclaimer: I am not a SEBI registered analyst. All the stocks are for educational purposes. Investors must consult a financial advisor before making any investment. It is not a buy or sell recommendation
NSE:HCLTECHLong
by onkarsoundankar
1
The Ultimate Beginners Guide to Day TradingHello everyone My name is d3ffyduck I am today gonna post some cool and new tips For the beginners in Daytrading. I am gonna divide things in Chapters so you'll learn it with ease Read it till the end Hope You learn something Chapter-1 Timeframe selection The choice of the best timeframe for chart analysis in day trading can vary depending on a trader's strategy, preferences, and the market being traded. Different timeframes offer varying levels of detail and may suit different trading styles.For Example 1-Minute Chart: This timeframe provides very detailed information, showing price movements within one-minute intervals. I prefer Using it for precise entry and exit points In day trading 5-Minute Chart: Slightly less detailed than the 1-minute chart, the 5-minute chart still offers relatively short-term insights into price movements. I use to determine my momentum for the trade i want to hold for like 1-2hrs only 15-Minute Chart: This timeframe offers a broader view of the market compared to shorter intervals. I prefer it to determine my next day momentum of the market Chapter-2 Support and resistance Using RSI I know you all knows the basics for support and resistance but today i will show you the best way. Just open your chart and use RSI Indicator and we are going to mark the overbought areas high candle and oversold area lowest candle using it for different time frames. Just a note from my side do not mark those areas again if there have already a support or resistance line in different time frame and also you can remove those level of S&R which did not hold well in different time frames 1-day time frame=I have marked the regions where the RSI turned in the overbought or oversold areas. As you can see, I have not marked the support and resistance levels since they were already established from previous market overbought and oversold. 4-hour Time frame=In this timeframe, we will only identify the levels that are above 70 and below 30 in the RSI. We'll skip the R&S that are already marked on the daily timeframe. To reiterate, please refrain from marking those levels again if we can observe that our resistance and support levels have already been established on the daily chart. 1-Hour Time Frame = I've set my preferred timeframe to a maximum of 4 to 5 months. I don't want to go below this timeframe as it will create more noise. Additionally, I'll remove the support and resistance levels that didn't react well for buyers and sellers at this point to make the chart look cleaner Chapter-3 Determining the Trend Here in this chapter we are going to use only 2 Things to keep everything simple:- SMA+EMA 200= We are going to use simple indicator or just create yourself one indicator which plots both sma and ema with same 200 timeperiod. Rules are simple if below both ma look for short if above both ma look for long You can use it for 1hr and 15 min for day trading purpose Trendlines- Trendlines are your best friend.They are the building block for your Chart pattern look for trendlines in 15 min tf for day trading purpose Chapter-4 Significance of market opening closing,high,low This is one of the important chapter for day traders and i am going to tell you how an opening closing high and low effect the whole day trade. For Example 1-Open your Chart 2-Mark the opening ,closing highs and lows for previous 3-4 days 3-Those area are going to be area of interest Tip for the beginners. Do not take any trades for the first hour From the opening of the day For example if your market opens in 9:15 am dont take trades until 10:00-10:15 cause of high volatilty Another Tip for the beginners.If you prefer to take 2 trades a day close your previous 10:00 am trade At around 11:45am -12:15 pm and start looking for another one after that. the reason because i have seen this is the time for the most probable reversal or continuation of trend for the next leg of the day Chapter-5 Significance of Gaps in the market Gaps are one of the best way to decide what will be the market trend for the rest of the day There are two type of gaps in the market 1-Gap up 2- Gap down Tip for the beginners Only trade in the strong gap up or down and as i said before do not trade in the first hour of the opening Ill show you some scenarios of gap Trading with respect to opening of the day Scenario 1st strong gap up+ Stayed above above the gap and opening for the 1 hour(9 am-10am) We can see we had a strong opening stayed above the gap up and open for atleast 1 hour so after this the trend is decided Tip for the beginners Always follow strict Risk and Reward ratio like i use 1:1.5 Scenario 2nd strong gap up+ stayed below the gap and opening for the 1 hour(9 am-10am) We can see we had a strong gap up and opening but price stayed below the opening for 1 hour so we took the short as dropped below previous closing/high Similarly we can use this for gap down scenarios Final tip from my side are:- Do meditation for 15 min before trading hours Always use stoploss Use your preferred Risk Reward ratio like 1:1.5 Do not trade in opening Hour Gaps are like your friend Trends are like a path to success Do not overtrade Dont only rely on indicators there isnt any indicator which can make you rich Use only basic indicators such as Ema,Macd,Rsi and ATR PLEASE UPVOTE AND FOLLOW FOR MORE EDUCATIONAL CHARTS AND STRATEGIES
NSE:BANKNIFTYEducation
by D3ffyDuck
1
Look no further while AETHER is Here ! -Annual Revenue rose 11.8%, in the last year to Rs 667.6 Crores. Its sector's average revenue growth for the last fiscal year was 17.1% -Annual Net Profit rose 19.7% in the last year to Rs 130.4 Crores. Its sector's average net profit growth for the last fiscal year was 6.7%. -EPS increased to 10.5 from previous year 9.67 PE Ratio is 109.7, higher than its sector PE ratio of 47.7 (Negative) In the latest quarter : DII Holding increased by 5.26% Promoters holding decreased by 5.26% FII Holding increased by 0.30% Incorporated in 2013, Aether Industries Limited is a manufacturer of specialty chemicals. The company is sole Indian manufacturer for chemicals such as 4-(2-Methoxyethyl) Phenol (4MEP), and 3-Methoxy-2-Methylbenzoyl Chloride (MMBC), Thiophene-2-Ethanol (T2E), Ortho Tolyl Benzo Nitrile (OTBN), N-Octyl-D-Glucamine, Delta-Valerolactone, and Bifenthrin Alcohol. It exports products to 18 countries, including Italy, Spain, Germany, the United States, and other parts of the world. Business segment: A) Large Scale Manufacturing (72% of FY21 revenue) B) Contract Manufacturing (19% of FY21 revenue) C) CRAMS (9% of FY21 revenue) New Manufacturing units In August 2021, it commenced construction of a new manufacturing facility #3 at Sachin, and it is in discussions with relevant authorities for acquiring land for the fourth manufacturing facility (manufacturing facility #4) at Sachin. Both these new manufacturing facilities (#3 and #4) will be within a short distance from manufacturing facility #2.
NSE:AETHERLong
by CannySunny
4
Would Aspinwall Crawl or Stand Tall ?Aspinwall and Company Limited is a multi-line business organization engaged in Logistics services across 9 branches in India, Coffee processing and trading at Mangalore, natural fiber division at Aleppey and Pollachi, Sales office in Hertogenbosch (Netherlands), Rubber plantations at Malappuram and manufacture and trading of Natural Fiber products. Revenue Mix Sale of products: 54% Logistics : 46% 85% of the coffee exports are to Switzerland, Germany, Italy, England and Scandinavian countries like Norway, Sweden and the balance to Australia, USA, Japan and Russia. The co provides services like Liner Services, Customs Brokers, Freight Forwarding Services, Air Cargo Services, Ship Agency Services, Stevedoring Services, Bulk Cargo Services, Warehousing Services, Door to Door Services and Project and Over-Dimensional Cargo handling. The Company has five wholly-owned subsidiaries, Aspinwall Technologies Ltd, Malabar Coast Marine Services Pvt. Ltd., Aspinwall Geotech Ltd., SFS Pharma Logistics Private Limited and Aspinwall Healthcare Private Limited. The co has ventured into new business initiatives comprising trading of Premium Virgin Coconut Oil products. Also, by incorporating a new wholly-owned subsidiary company, Aspinwall Healthcare Private Limited, the co has also entered into the manufacturing and trading of medical products/accessories/equipment market.
NSE:ASPINWALLLong
by CannySunny
ISMT technically has the Ability to give you Plenty!This analysis is purely Technical. Positive: - Annual Revenue rose 19.1%, in the last year to Rs 2,598.2 Crores. Its sector's average revenue growth for the last fiscal year was 9.5%. - Quarterly Revenue rose 12% YoY to Rs 658.7 Crores. Its sector's average revenue growth YoY for the quarter was -0.6%. - Mutual Fund Holding remained the same in the last quarter at 0%. Negative: - Annual Net Profit fell 96.3% in the last year to Rs 87.7 Crores. Its sector's average net profit growth for the last fiscal year was -53.4%. - Quarterly Net profit fell 99.7% YoY to Rs 8.4 Crores. Its sector's average net profit growth YoY for the quarter was -51.2%. Kirloskar Ferrous Industries Limited (KFIL) acquired majority stake in the Share Capital of the Company(i.e. 51.25%), making ISMT a subsidiary of KFIL w.e.f March 10, 2022. The Company is the largest integrated manufacturer of precision seamless tubes, tubular components, and steels in the Asia Pacific Region. The Company is mainly engaged in manufacturing of seamless tubes and engineering steels. Apart from tubes, ISMT Limited also manufactures a wide range of value added products for each of these industries. These include items such as bearing rings, gear blanks, shifter sleeves, cages for constant velocity joints, swaged & machined axles, threaded and coupled casings, couplings and a host of similar products. The group companies include ISMT North America, Taneja Aerospace and Aviation Limited (TAAL), Structo Hydraulics AB, Sweden and ISMT Europe, Sweden. ISMT has one of the most modern alloy steel plants in India. The factory, located at Jejuri (within a 100 km radius of ISMT's Tube plants) has a capacity of 190,000 MT per annum. The Company is currently using the de-bottlenecking and modernization process to raise its capacity in the immediate future. It plans to increase the 1,55,000 tpa tube capacity to 2,00,000 tpa. Moreover, the steel capacity of the company which is already manufacturing at the rate of 2,40,000 tpa will be raised to 3,50,000 tpa.
Editors' picks
ILong
by CannySunny
11
Well, I think EIHOTEL could Break the SHELL. Do you?EIH is primarily engaged in owning and managing premium luxury hotels and cruisers under the luxury Oberoi, Trident and Maidens brands. The Company is also engaged in flight catering, airport restaurants, project management and corporate air charters. The group has been in luxury hospitality business for 6+ decades in India and has expanded into international destinations viz. Indonesia, Mauritius, Egypt, and the UAE The group manages 29 hotels & resorts (owned and managed) with room inventory of 4,269 across 6 countries at 15+ locations. The Company was voted the ''Best Hotel Brand in the World'' at Travel + Leisure world's best award, 2022. There was a 58% growth on YOY basis in online bookings in FY23. Hotel Brands A) Oberoi Hotels – In this brand, company operates 18 Hotels & Resorts, and a luxury River Nile cruiser in Egypt. B) Trident Hotels – In this brand, company operates 10 Hotels with 2172 keys across 9 cities in India C) Maiden Hotel – Established in 1903 as one of the first hotels in Delhi, Maiden hotel is a single hotel operated by a company in Delhi with 55 Rooms. Owned Hotels - FY23 Average Daily Rate - Rs.11,465 Occupancy % - 77 Revenue Generate per Available Room - 127% Managed Hotels - Q2FY23 Average Daily Rate - Rs.11,036 Occupancy % - 69 Revenue Generate per Available Room - Rs.7603 Low Debt and Higher Asset Base The company has total assets of 2985 Crs and debt of only 217 Crs as of Sep 2022. Due to its large asset base, company has been able to borrow money at better interest rates. The Weighted Average Cost of Debt as of 30th September 2022 was 7.6% Alliance In FY23, company entered into a strategic alliance with the prestigious Mandarin Oriental Hotel Group. New Projects for FY24 1 Bay Club, Mumbai: In FY23, the company opened The Bay Club which is Mumbai’s most exclusive members’ private club, managed by the Oberoi Group. It is an exclusive, by-invitation-only private members club situated at BKC. 2 The Oberoi Rajgarh Palace, a luxury project situated near Khajuraho is being developed. This resort will provide upscale lodging on a 62-acre site adjacent to the Panna forest reserve. 3 The Company has obtained land use consent for its 55-acre beach-front property in Goa. This is still at planning stage. 4 The planning process is on for the Oberoi Hotel, at Bengaluru. 5 Construction is progressing at The Oberoi Wildlife Resort Bandhavgarh, located on a 22-acre site just five kilometers away from Bandhavgarh National Park. 6 The Oberoi and Trident resorts, on KohTan Island, located southwest of Koh Samui, Thailand. 7 The Oberoi Kathmandu is being developed on a greenfield site measuring five acres. 8 The Oberoi Wildlife Resort, located near Bardia National Park in Nepal, will be developed approx on 30 acres. 9 A luxury Nile Cruiser is planned with 25 cabins and will sail along the Nile between Luxor and Aswan. 10 Trident resort in Tirupati Andhra Pradesh is planned. This upcoming 100- key resort, will be developed by the Company’s subsidiary Mumtaz Hotels Ltd., will be managed by the Company.
NSE:EIHOTELLong
by CannySunny
Is it time for COFORGE to SURGE ?Company has delivered good profit growth of 21.3% CAGR over last 5 years. Company has been maintaining a healthy dividend payout of 40.5% Company's working capital requirements have reduced from 29.2 days to 15.2 days. DII bought more stake from FII and promoters. DII holding increased 5% last quarter. Co. has an order book of US$ 720 Mn. Coforge is an IT services company providing end-to-end software solutions and services. It is among the top-20 Indian software exporters. Prominent global customers include British Airways, the ING group, SEI Investments, Sabre, and SITA. Over the years, Coforge has set up subsidiaries in the US, Singapore, Australia, UK, Germany and Thailand, mainly to market and mobilize projects for the software division. The company has business partnerships with large IT companies across the world. Products & Services The Co provides AI-based digital business assistants, deep learning, machine learning, multi-currency, multi-lingual, multi-channel experience, image recognition, RPA, NLP, and workflow automation. During FY22, Coforge signed 11 large deals across our focus verticals and breadth of capabilities resulting in a total fresh order intake of $1.1 billion. This included a $105 million TCV contract in the BFS space and three $50 million plus contracts. Additionally, the company has made a few acquisitions in the recent past to increase revenue and enhance geographical and customer presence. Moreover, Coforge became an AWS Travel and Hospitality Competency Partner and also announced a global partnership with Kong – a Gartner 2021 leader in Full Lifecycle API management. The firm also announced the extension of its partnership with Cisco AppDynamics, the leading full-stack, business-centric observability platform.
NSE:COFORGELong
by CannySunny
Can HUDCO Hud Hud Dabangg ? Housing & Urban Development Corporation Ltd is primarily engaged in the business of financing housing and urban development activities in the country The company is one of the major financiers of urban infra and housing projects, thus remaining strategically important for Govt's objective of housing for all. The GoI holds ~81% stake in the company. It also has well-established relations with different state governments, making it a preferred lender for their urban infra and housing projects. While ~88% of the loans are covered by bank/ government guarantees, the rest 12% are secured by tangible assets. Public sector accounts for ~97% of loan book while private sector accounts for the rest 3% only. As per Q3FY22, taxable bonds accounted for ~66% of borrowings, followed by tax free bonds (30%) and refinance from NHB/IIFCL (4%).
NSE:HUDCOLong
by CannySunny
2
Apollo Sindoori lagti hai Param Sundari Apollo Sindoori Hotels Ltd incorporated in 1998, is a small cap company engaged in the business of managing food outlets at hospitals and reputed organisations. The Company also undertakes Outdoor Catering Services, Skilled manpower to hospitals etc. It prepares over 45,000 meals everyday. - Company's annual revenue growth of 78.55% outperformed its 3 year CAGR of 23.45%. - Annual Net Profit rose 14.5% in the last year to Rs 17 Crores. Its sector's average net profit growth for the last fiscal year was 1,018.9%. - Stock Price rose 137% and outperformed its sector by 95.3% in the past year. - Price to Earning Ratio is 21.1 lower than its sector PE ratio of 67.7 - Interest Coverage Ratio is 4.4, higher than 1.5 which means that it is able to meet its interest payments comfortably with its earnings (EBIT) with a Debt to Equity Ratio of 0.9
NSE:APOLSINHOTLong
by CannySunny
5
TATA COFFEE in a Cup & Handle CROCKERY. SmellsTASTY?- Company has been maintaining a healthy dividend payout of 22.5% - PE Ratio is 18 while sector PE ratio is 40. - Annual Revenue rose 21%, in the last year to Rs 2,880 Crores. Its sector's average revenue growth for the last fiscal year was 21.6%. - Annual Net Profit rose 78% in the last year to Rs 263 Crores. Its sector's average net profit growth for the last fiscal year was 22%. - Quarterly Revenue rose 5.8% YoY to Rs 708 Crores. Its sector's average revenue growth YoY for the quarter was 7%. - Quarterly Net profit rose 5.5% YoY to Rs 48 Crores. Its sector's average net profit growth YoY for the quarter was 11%. Tata Coffee Ltd is Asia's largest integrated coffee company, the second largest exporter of Instant Coffee and foremost producer of Specialty coffee in India. The promoter of the company is Tata Consumer Products Ltd which holds 57.48% shares of TCL. Its own instant coffee brands include Tata Coffee Grand, Eight-o-Clock, Sonnet, etc. Pepper The company produces pepper which is intercropped with coffee and tea at its estates. It produces 27 different categories of black pepper. The co. produced 732MT of pepper in FY23. It is the largest corporate producer of Indian origin black pepper in the world. Tea The company own 6 tea estates Tamil Nadu and districts of Karnataka and produces 5 million kg of tea p.a. Its offerings include CTC, silver tips, orthodox, green speckles and green tea. Green Beans The company grows various specialty coffee offerings from its estates in India i.e., micro-lots, washed arabica, washed robusta, monsooned & organic and certified. 90% of its washed arabica beans are exported as premium green beans to roasters to various nations. All of its estates are certified through 3 agencies i.e. UTZ, Rainforest Alliance and SA 8000 for commitment to people and environment.
TLong
by CannySunny
JULLUNDUR finds place in my PRAYER.PE Ratio is 7. Sector PE ratio of 36 - Annual Revenue rose 14.9%, in the last year to Rs 509 Crores. Its sector's average revenue growth for the last fiscal year was 26%. - Annual Net Profit rose 11.8% in the last year to Rs 27.1 Crores. Its sector's average net profit growth for the last fiscal year was 93.3%. Jullundur Motor Agency (Delhi) is engaged in trading and distribution of automobile parts, accessories and petroleum products. Located in Gurugram, the company has branches all over India. The company deals in products such as brakes, bearings, clutches, cooling system, engine components, suspension, power steering, oil & lubricants, filters etc. Most of Company's suppliers are original equipment manufacturers (OEM's) to vehicle manufacturers. The company has a branch network of 77 branches, with a staff strength of 680 people, with a dealer network of 75000 dealers pan India, covering almost all parts for all vehicles dealing in only in OE and premium quality brands The company is in the process of adding more products / lines in product mix and focusing on opening new outlets in tier-II & tier-III cities. The company is also investing in technology to help increase efficiency.
NSE:JMALong
by CannySunny
Have you ever heard ROLEX RINGS gives you WIIINGS?- Company has reduced debt. - Company has delivered good profit growth of 21.9% CAGR over last 5 years - Company has a good return on equity (ROE) track record: 3 Years ROE 29.3% - Annual Revenue rose 16.5%, in the last year to Rs 1,198.3 Crores. Its sector's average revenue growth for the last fiscal year was 26%. - Quarterly Revenue rose 8.6% YoY to Rs 313.7 Crores. Its sector's average revenue growth YoY for the quarter was 23.1%. - PE Ratio is 29.9, lower than its sector PE ratio of 36.3. - FII and DII holding increased last quarter. Rolex Rings is a leading manufacturer of forged and machined components in India and is one of the top 5 forging companies in India. The company is a Global supplier of hot rolled forged, machined bearing rings and automotive components for various segments of vehicles, Industrial Machinery, Wind Turbines and Railways. The company derives nearly 54% of its revenue from bearing rings and 38% from automotive components. The company exports its products bearing rings and automotive components to 17 different countries including France, Italy, Germany, Thailand, Czech Republic, USA, and others. Exports contributed 46% of the revenue of the company. The company supplies to automotive companies and leading bearing manufacturers such as SRF India, Schaeffler India, Timken India, etc. Top 10 customers accounted for 80% revenue of the company
NSE:ROLEXRINGSLong
by CannySunny
2
Vijay Kedia increases stake in Atul Auto.Market Cap : 881 Cr Atul Auto manufactures and sales Auto Rickshaws in domestic and overseas market. Atul's diesel engines are supplied by Greaves cotton whereas they makes their own engine for petrol and alternative fuel vehicles. Capacity expansion The company completed green field expansion taking the total capacity to 120,000 units on September 2021 at a cost of 150 cr. assembly line would be made operational in FY2022-23 Atul held 30% stake in Khusbu auto finance which was recently increased to 100%. The stake was valued at 64 Cr.
NSE:ATULAUTOLong
by CannySunny
7
How to calculate stock weightage on index. #What is Stock weightage on an index ? --> Stock weightage on an index is the relative importance of a particular stock in the index. It is calculated by dividing the market capitalization of the stock by the total market capitalization of all the stocks in the index. -->The weightage of a stock in an index is important because it determines how much the stock will move the index when its price changes. A stock with a higher weightage will have a greater impact on the index's movement than a stock with a lower weightage. How the stock weightage on an index is calculated ? -->There are two main methods for calculating stock weightage on an index: Market capitalization-weighted index: This is the most common method. The weightage of a stock in a market capitalization-weighted index is determined by its market capitalization. This means that the larger the market capitalization of a stock, the higher its weightage in the index. This is the most reliable and popular method to calculate stock weightage on an index. Price-weighted index: In a price-weighted index, the weightage of a stock is determined by its price. This means that the higher the price of a stock, the higher its weightage in the index. -->as an example, the stock weightage in Nifty Bank, like in any other index, is calculated using a free-float market capitalization-based method. Here's a simple explanation of how it's done: Market Capitalization: The market capitalization of a company is the total market value of all its outstanding shares. It is calculated by multiplying the company's share price by the total number of outstanding shares. Free-Float Market Capitalization : Free-float market capitalization considers only the portion of a company's shares that are available for trading in the open market. It excludes shares held by promoters, governments, and other strategic investors that may not be readily available for trading. Weightage Calculation: To calculate the weightage of a stock in Nifty Bank, you take its free-float market capitalization and divide it by the sum of the free-float market capitalization of all the stocks in the index. -->For example: Let's say Nifty Bank comprises three stocks with the following free-float market capitalization: Bank A: Rs. 50,000 crore Bank B: Rs. 30,000 crore Bank C: Rs. 20,000 crore Total free-float market capitalization of Nifty Bank = Rs. 50,000 crore + Rs. 30,000 crore + Rs. 20,000 crore = Rs. 100,000 crore -->Now, to calculate the weightage of each stock: Bank A weightage = (Rs. 50,000 crore / Rs. 100,000 crore) * 100 = 50% Bank B weightage = (Rs. 30,000 crore / Rs. 100,000 crore) * 100 = 30% Bank C weightage = (Rs. 20,000 crore / Rs. 100,000 crore) * 100 = 20% --> The stock weightage in Nifty Bank will be adjusted periodically based on the changes in the free-float market capitalization of the constituent stocks. As stock prices change in the market, the weightage of individual stocks in the index will also change to reflect their current market value. All the best !! Follow us for more such insightful information and Give it a like if you appreciate the information. Queries will be answered in comment section.
NSE:BANKNIFTYEducation
by InvestyourAsset