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A LOW RISK - MULTI-BAGGER - PENNY STCK AT BOTTOM?? Techno Funda Weekend Educational Idea: Indian Overseas Bank // FIBONACCI AND 8 EMA Band Combo I have been tracking this stock for quite some time now and today finally it has given me a Techno-Funda Buy Signal on my Algos. This makes me post this Educational Idea. I don't recommend to buy penny stocks just because of their ticket size, but looking at the charts indicators and the basic fundamental analysis of the stock, this particular scrip can propel to the higher levels pretty fast and makes a perfect candidate for swing trading and short term trading. Moreover the Risk Reward is excellent (1:3), which I consider as the most important parameter in a trade and investment. At this moment, this is purely an EDUCATION IDEA and NOT A BUYING RECOMMENDATION . In coming days I will post more precise Targets and Stop Loss for recommending firm trades. Traders who love to invest / trade in penny stocks, can take paper trade or trade with small capital (1% of your trading capital) to learn the technique. EDUCATIONAL / PAPER TRADE: Call for Monday August 24th 2020 // This is a swing trade call and not an intra-day trade // NSE: NSE:IOB CMP / LTP: 11.7 IDEAL BUYING RANGE*: 11-12 1st TARGET: 13+ (10% Around) In 5-10 Trading Sessions // 2nd TARGET: 17+ (45%) In Short Term 3-4 Months STOP LOSS: 9.9 (15 % Max) HAPPY TRADING AND INVESTING!!
NSE:IOBEducation
by Amit_Padishalwar
1
POSITIONAL STOCKS FOR 2-3 MONTHWe have shortlisted some stocks as per the fundamental analysis for the positional trading but we do not enter into any trade with only fundamental. We use our trading strategy to enter into the trade and the strategy based on price action technical analysis. We always wait for our setup to enter into the trade. We take the trade only if the particular stock meets all our entry criteria, Most of the time we take entries in a lower timeframe like 15 minute or 1-hour timeframe. There are lots of research behind the stock selection and the trading strategy, So please do not invest without proper knowledge, Do your own research before investing or trading. And this list will be updated according to the market movement. These are the stock list for the month 1  - SPENCERS RETAILS 2 - CESC 3 - GRUH FINANCE 4 - CHALET HOTELS 5 - PAGE INDUSTRIES 6 - BERGER PAINTS
NSE:CESCEducation
by MarketNeeti
NIFTY OVERVALUED: Fundamental Approach.Is NIFTY' OVERVALUED? Fundamental View Based on P/E, P/B, Div'. Yld. (A) Nifty' 50’s Price to Earnings (P/E) Price-to-Earnings ratio (P/E) of the NIFTY' is a simple market-valuation ratio. A general guideline to help understand the valuation is: P/E > 24 = Dangerously overvalued P/E > 20 < 24 = Overvalued P/E > 16 < 20 = Fairly valued P/E > 12 < 16 = Undervalued P/E < 12 = Highly undervalued (mouthwatering valuations) Current: 28.11 (MAX was 28.26 on 06 & 07th aug '18) (B) Nifty' 50’s P/B (Price to Book value) Price-to-Book value ratio (P/B) tells us how many times an investor is ready to pay for a rupee of net assets. Since book value is stable and less volatile than earnings, some consider it better than the P/E as a measure of valuation. If P/B > Median P/B = Overvalued P/B < Median P/B = Undervalued Current: NIFTY' 50's P/B: 3.74 > Median P/B: 3.4 (OVERVALUED) (C) Nifty' 50’s Dividend Yield (Div'. Yld.) Dividend Yield (Div'. Yld.) is nothing but the return an investor gets in the form of dividend on his investment. It is measured as dividend per share divided by price per share. General Interpretation: When stocks are cheap, dividend yields are high. #1. Div'. Yld > Median dividend yield => Undervalued #2. Div'. Yld < Median dividend yield => Overvalued Current Scenario: 1.17, Median Div' Yld: 1.31 Fulfill Criteria #2. Hence Verdict: "OVERVALUED" Historical Ref.: MAX - 2.24%, Min - 0.90% Technical View: Nifty'50 seems to have exhausted its momentum in the near term. Time cycle suggests a sharp correction is overdue. The upward channel is acting as a strong resistance and it seems that the market will respect the same. The oscillators have turned distinctly negative (mentioned "MACD" in Chart), suggesting loss of momentum on the upside. For Intra / Weekly levels refer "NIFTY: Week Ahead, Spot & FUT Levels Weekly(20/08/18) Basis" If useful, don't forget to to Click in Like button.
NSE:NIFTYEducation
by DSKF16
8
INDIA Vix and Options - Theoretical ApproachINDIA VIX and Options - Theoretical Approach. What is relation between the volatility index (VIX) and the options pricing. In Black Scholes model of options pricing, the call and put options pricing is dependent on following 5 factors: 1) Price of the underlying 2) Strike price 3) Risk free rate of interest 4) Time to expiry 5) Volatility Out of these five factors, first four are factual in nature. We all know the price of the underlying, strike price, risk free rate of interest, time to expiry at the time of writing an option. What you don’t know is the Volatility in the near future and thus it is somewhat subjective in nature and derives from the anxiety or fear of the option writer. This volatility is called implied volatility and it reflects the sentiment of a option writer. If the option writer thinks that in the near future the volatility is going to be high, he would demand higher premium for writing an option and thus the prices of the options will be higher. On the other hand if he thinks the volatility is going to be lower, he will demand lesser premium for the options and thus lower option prices. Now if we consider all the option writers present in the market. There would be millions of such people and if we try to calculate the average volatility from the options they have written, we can get a value which can describe the overall sentiments of the market about volatility. This is what Volatility Index really tells us. It uses the prices of the options to guess the future volatility, ofcourse, after doing several other operations as well but in a nutshell, it is the reverse process of option pricing taken all the options being traded into account and thus calculating the sentiment of the entire market. We can read the exact method of calculating India VIX here. Now what does a particular value of the India VIX indicates? Value of India VIX at the time of writing this article (24/08/17) is 12.5725 which means people are thinking that over the next 30 days markets can move up or down by 3.6293% and demanding premium as per this value. Low value of VIX indicates stability in the market while higher value indicated stress, fear and anxiety. Since, the investors are more fearful of the downside, VIX is negatively correlated to the stock market index like Nifty or Sensex which means as the market index drops the VIX value increases & vice-versa. Try to post another article, discussing the correlation between India VIX and Nifty and how VIX can be used as a hedging tool once India VIX futures and options are introduced.
NSE:NIFTYEducation
by DSKF16
4