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Fundamental Analysis

Is it profit booking or trend reversal?There's no doubt that IT stocks had a massive rally since COVID crash and today it had fell by almost 3 percent. So is it profit booking or trend reversal? I heard some of them speaking about sectoral rotation from IT sector to Auto sector but I'm not in their side because IT sector are backbone of the economy, as long as economy is doing great they continue to rise and i don't think our India is going worse and also if the economy is going to get worse Bank sector will fall first which doesn't happen in our case, even Bank Nifty showing some bullishness. I accept the fact that there might be a big rally in Auto stocks because of report saying that semiconductor shortage may be resolved in H1 FY22 and also due to festive season but it doesn't make sense in Trend reversal of IT sector. It looks like small profit booking by institutions, I'm bullish on it for a longer time frame of about 5 years and i too had invested in IT ETF. So continue to invest in IT stocks if you're bullish in it.
NSE:CNXITEducation
by Raghulramdoss
2
Trying to catch an ITC breakoutI tried multiple times to catch a breakout on ITC and it has had it's ups and downs. 1st position I built was on 1st June. I tried to be a little greedy with the possibility of a reward, chose Options. Bought 220 CE and ITC being ITC promptly retraced back below resistance, and pretty much wiped out the money in the position. The 2nd time I tried a month later when the pullback looked promising, and this time I went with a Future contract instead. It again fizzled out and I had to exit early as the Future position was naked and had started to bleed losses. The 3rd time I built the position the right way. I hedged my futures with just OTM puts, thereby capping the loss possibility. With the hedge margin benefit, I could open double the position and that offset the "loss" due to hedge. Once that was done, I was free to maintain and hold the position for as long as needed till a breakout did occur. Why was I confident about a breakout? Well ITC has been forming a multi year symmetrical wedge - with Lower Highs, and Higher Lows. Though this has an equal chance to break both sides, at a price point near 200-215 ITC is very fairly priced even for a consolidating market - and given the bullish market sentiment, quite underpriced comparatively. For now I am continuing to trail SL on ITC and for the medium term expect it to make an up move to catch up with the rest of the market. Learnings : 1. Stay away from naked options no matter how attractive they look . Though the rewards on Options looks awesome on paper, it is very very difficult to time a larger move correctly. More often than not, with a reversal you will quickly erode capital. Better avoid them to gain longer term rewards. 2. Always hedge your futures. You can in fact make more returns on a hedged position with twice the buildup, than you could with a naked single position - and you will still spend only half the margin requirement. 3. Be patient with your trades. Many a time we're looking for quick returns, especially if we're new in the market. The trick is to slow things down and look at the bigger picture. Make sure you limit your losses, and ride your winners for long - till they turn around decisively.
NSE:ITCEducation
by libinbond
1
How To Use Financial Ratios To Make Better DecisionsFinancial Ratios help you evaluate a company. Most financial ratios will show you how much money you're paying for a specific piece of the business. Let us give a few examples: Price-to-Sales Ratio = Market Cap / Sales The Price-To-Sales ratio or PS ratio tells you how expensive a company is relative to its total sales. The formula is calculated in two different ways: divide the company's market capitalization by its revenue or divide the current stock price by revenue-per-share. Because this ratio is being calculated with live price information, you can also watch it in real-time on the chart as we've shown in this example above. If a company has a market cap of $10 billion and revenue of $1 billion, well that, that implies a PS ratio of 10. You're paying $10 for every $1 in sales. You can do ratios like this for all aspects of the company. For example, PE ratio or Price-To-Earnings ratio measures the Market Cap / Earnings . This tells you how much you're paying for every dollar of earnings . Keep in mind that Financial Ratios are not perfect. They are also not a buy or sell recommendation. Instead they are shortcuts, ways to quickly evaluate a company, compare its underlying fundamentals, and study that company relative to other companies. You also must remember that financial metrics can change quickly with a single earnings report. A company's future expectations are also just as important. A company like Apple might have a high PE ratio, but if they're building and growing revenue into the future, their PR ratio could come down over time. Remember, Financial Ratios and Financial metrics in general paint a picture of the underlying business and its earnings potential. Here are some other resources to get you started: 1. Read more about Financials on TradingView in our Help Center. 2. You can also code your own strategy or indicator using this financial information . 3. We've also created a library in our Help Center so you can learn more about every Financial metric . Here are some other financial ratios that you may find interesting and how they're calculated: PE Ratio = Market Cap / Earnings PB Ratio = Market Cap / Book PEG Ratio = PE / Earnings Growth Quick Ratio = (Cash + Cash Equivalents + Current Receivables + Short Term Investments) / Current Liabilities Dividend Yield = Dividends Per Share / Price EV Multiple = Enterprise Value / EBITDA To access all of the Financial Ratios available to you, click the Financials button at the top of your chart. From here, you can select many different Financial metrics and study markets at a deeper level. More importantly, you can combine the study of Technical and Fundamental analysis at the same time. Meaning you can evaluate the fundamental side of the business including its earnings and valuation while ALSO studying price action and planning a trade. Please feel free to share your feedback and comments below! Thank you for reading.
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NASDAQ:AAPLEducation
by TradingView
8
GBPJPY 275 pips winner 📈💰🤑Based on previous analysis of GBPJPY, the trade came out to be a winner. Target was 300pips but market printed 275 pips (satisfied). Usually I close my trade if the moment on intraday changes from the desired to unwanted, thst means in this case the desired momentum was bullish but at a certain time the market started rejecting download (bearish momentum establishment) so i close se the trade and take all the profits already made! Follow for more 📊 ALL THE BEST!
Education
by lofitrend
Trading Crypto/Altcoins Like A PRO! The Easy Way ExplainedIn my latest BTCUSD article I mention that it is easier to profit from the bullish/growing crypto/altcoins market by holding rather than "jumping" around from coin to coin, which can lead to some gains but in the end one can lose. It is better to buy and hold and wait for your turn to come. Let me detail this strategy for you in 3 simple steps. Feel free to hit LIKE now and let's get started! 1) Diversify You need to buy and hold and wait, yes, but you can't just put all of your funds in one coin and let it roll, the risk is too high. What we do is to diversify. Say you have 10BTC you split this in 10, and you have 1 BTC available to put into 10 different altcoins trading pairs. You look at the ones you prefer, you look for charts, trades, fundamentals, feelings or any and all information that you need to support your call. Once you have this information, now you buy and starts with the hold. Instead of putting 10BTC into just Bitcoin or one single altcoin trading pair, you would have 1 BTC into 10 different cryptos and this is better, better risk, better potential for short, mid and long-term gains. 2) Set Your Sell Orders on Target and Define Your Risk I lie... Waiting is not all. Right after buying you need to set your sell orders on target and now, finally, you can just let it roll. There are many ways to choose your targets but here are just a few examples so that you can get started right away. You can split your sell orders in 3 batches each of 31.5%. Example: You can have 1 sell order set at 30% profits, another at 50% profits and the last one finally at 100% of profits. That would be a total of 94.5% that is already set to sell automatically as prices go up. The remaining 5.5% can be kept to sell higher if the trading pair continues to grow. There is more... Another example: You can sell all at 40% profits or even 100 or 200%. It depends on the growth potential of the pair you are choosing and for how long are you willing to wait. You can always jump in thinking that everything will be said and done in a few weeks or maybe 1-2 months... But be prepared, reality is much different and your wait can take anywhere between 3 to 6 months before your sell orders start to fill up. Define your risk by making a note of when you would like to sell if prices fail to go up. Example: If this pair goes down by 20/30%. I take the loss and move on. We use manual stop-loss but that it is beyond this post. 3) Relax To Later Enjoy With your funds split, your sell orders ready and the stop-loss... You are finally ready for real, to disconnect and let go. Now you can go and read books. Now you can go to the beach, park, mountains, or do anything that is Soul building and leads to fun... Meditation comes to mind, deep breathing, sharing, exercising, learning & more. Once the market does its thing... You can come back and collect the funds. Rinse and repeat... The market moves in cycles, prices always move up and down, up and down... Down and then back up. This is Alan Santana. Thanks a lot for your continued support. Namaste.
BITSTAMP:BTCUSDEducation
by AlanSantana
Guess the company? Fundamental Analysis [Sector : Gas & Fuel]Small cap company with good sales and profit growth on yearly basis : Fundamental key points : The fundamental analysis involved different aspect of company from top line to bottom line items, cash flow, financial ratio, order books, etc. This analysis based on simple ratio and past growth figure for better understanding. - Price/Book Value : 2.25 = It means share is trading at 2.25 times from book value, BV = Rs.72 v/s CMP = Rs 160 : Lower the better - P/E : 7.72 = It means how much price you are paying to company for its earnings per share (P = Rs.160 , No of Share = 2.10 crores, Earning = Rs ? - Plz calculate) Lower the better, as per industry norm less than 15 is considered as favourable/undervalue but also depend on industry to industry. - 3 Years Net Sales CAGR : +100 % = in simple term sales compounding : Higher the better - 3 Year Profit CAGR : +100 % = in simple term profit compounding : Higher the better - 1 Year ROE : 50% = in simple term Return of investment : Higher the better - additional to this please also refer current ratio (more than 2 is consider favourable) , debt/equity (less than 1 is consider favourable), ROCE% (Higher the better). Technical key points : - price at resistance level , RSI positive , volume build-up Disclaimer : Analysis for learning purpose only not any kind of recommendation !!
NSE:REFEXEducation
by Indieconomic
3
#1 Moving average convergence divergence (MACD)100%Work# WE WILL MAKE ONLY PROFIT #What Is Moving Average Convergence Divergence (MACD)? Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line. Moving average convergence divergence (MACD) indicators can be interpreted in several ways, but the more common methods are crossovers, divergences, and rapid rises/falls. IF YOU NEED ANY HELP JUST COMMENT OR MESSAGE ME😊😊
NSE:BANKNIFTYEducation
by UnknownUnicorn22712522
13
AMARAJABAT - FAVOURABLE RISK REWARDAMARAJA BATTERIES was in downtrend since 6 Months & Now it has shown a reversal. Pros for taking position Technical 1) Support 2) Bullish Engulf 3) Trendline Breakout Fundamental 1) Electric Battery Industry is Expected to grow at around 15.9% CAGR till 2027 2) It is a second leading player in making Batteries and it has to benefit from the demand which is going to come in next few years 3) As Govt is spending huge on EV and demand increasing for EV we can expect it to go up from here. Cons Technical 1) Volume has not been impressive and no big money yet Involved. Fundamental 1) Company has not been able to give better results due to price war and higher lead prices 2) Environmental Reasons for harmful Emission - AP Govt asking it to shift the plant due to this.
AEducation
by RushabhPatwa
1