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Banknifty - 5 day same closingSo bank nifty today also closes on the same level where the last four days close. What I mean to say, the means price cannot be on the same level for a longer period, it has to move up or down. In this chart, I have given you an example of last week's (black pencil mark), from the last 4 days, the closing was on the same level, and on Friday it was a trending day. So now also bank nifty is doing the same thing, from last 5 days bank nifty closing is the same, thus means there can be a great move tomorrow, it can be upside or downside. As bank nifty is bullish, giving a bullish closing I am expecting on the buy side. If bank nifty breaks the previous day's high(PDH) we will go long, and if breaks the previous day's low(PDL) we will go short.
NSE:BANKNIFTY
by Garvit_Narang
NIFTY - Bullish closingSo after a hugely volatile day, nifty breaks the day's range and closes near its day high which clearly shows nifty is bullish. as you can see in 5 min time frame after the breakout of range, sellers were trapped at the 17825 level, and from that level nifty breaks it's days high (DH) and after the breakout of DH now nifty is consolidating and making pole and flag pattern. so our analysis for tomorrow will be, our view is bullish now so we will take only an upside entry. If nifty breaks its previous day's high(PDH) i.e level of 17190 we will enter into trade and our first target will be the 17970 level. So if it opens below its previous day's closing we can expect nifty can take support from the 17825 level (last swing) and can reverse from it. Our view will be bearish if only it breaks the previous day's low (PDL), level 17780.
NSE:NIFTYLong
by Garvit_Narang
NIFTY - 15 min.As we saw yesterday, there was a symmetrical triangle in 5 min time frame. Today in the opening, the triangle breaks on the upside and we achieved the 1st target of 17870. So for tomorrow our analysis we will go bullish if it breaks the level of 17900 i.e previous day's high (PDH) we can achieve the second target which will be the 17970 level. On the other hand, we saw today's market was in range and breaks a trendline. If the level of 17850 breaks we will take an entry for the downside, in that case, our targets will be 17800 and 17760 respectively.
NSE:NIFTY
by Garvit_Narang
The accumulation phase of BTC is intact The range is drawn with the help of trendlines. It is highlighted with red and green color, red being the resistance range and green being the support. Relative strength is gaining but there is one catch, This indicator works on the relative price of the past few days whichever is set as per the preference. If you see the past few months BTC is in the accumulation phase or phase of consolidation. There was no spur-of-the-moment, therefore the relative strength was at the bottom and since the past few days there impulsive buying which has created a spike in the relative strength. This could be a trap. It should cross the resistance line and 200 EMA
by OK_Rane
What Is the RSI Indicator & RSI DivergenceRSI - Relative Strength Index Indicator: The Relative Strength Index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. It is important to note that the RSI does not indicate whether a stock is a buy or a sell; rather, it provides insight into the current trend of the stock. The RSI is a versatile indicator that can be used by traders of all levels and can be adapted for any style of trading. For example, a trader may use the RSI to identify support or resistance levels, or to spot divergences that can be used to predict future price movements. The RSI can also be used to locate potential trading opportunities by looking for overbought or oversold conditions. Furthermore, the RSI can be used in combination with other indicators, such as moving averages, to gain a better understanding of the market’s overall trend. Formula of RSI: The RSI is calculated using a formula that compares the magnitude of recent gains against recent losses over a specified period. The formula for the RSI is: RSI = 100 - (100 / (1 + (Average of Upward Price Movements / Average of Downward Price Movements))) What is periods in RSI: Periods in RSI (Relative Strength Index) are the number of time periods used to calculate the RSI. The most commonly used period for RSI is 14, but other periods such as 7, 9, and 25 are also used. This number represents the number of time periods that are used to calculate the RSI, so a period of 14 would mean the RSI is being calculated using the last 14 time periods. RSI divergence: RSI divergences are a type of technical analysis used to identify potential trend reversals in the markets. They are based on the Relative Strength Index (RSI) and are used to spot potential trend reversals before they occur. A divergence occurs when the price of an asset makes a higher high, but the RSI makes a lower high. This suggests that the current rally is losing momentum and may reverse course. Similarly, a lower low in the price and a higher low in the RSI may signal an impending rally. Divergences are best used in conjunction with other technical indicators and analysis to confirm price action. It is also important to keep in mind that divergences do not always lead to reversals and may simply signal a period of consolidation before the price continues its current trend. Divergence Cheat Sheet / Types of Divergence:
Education
by AfnanTAjuddin
1
Risk Management trade in Reliance.Hi there! Let's talk about this small trade in Reliance. Reliance CMP:- 2524.05 -->From 30th sep to 1st Dec Reliance has formed HH and HL and was in Uptrend . -->Since then Price is in correction and approached 0.618 Fib level of that up wave. What's in my mind? -->If we observe the price action there is an untested demand zone at this 0.618 Fib area. -->If we observe the upper 2 arrows those mentioned candles and and their volumes saying that there was some distribution happened may be reason for this correction -->If we observe the bottom arrow that mentioned red candle with high volume is a support breakdow n and may be the stop losses of previous long trades What's my point? -->Even if price continues to move down I'm expecting a pull back before that and this Idea is actually trading that pull back. -->If my analysis goes wrong and price breaches this demand area I will exit with my stop loss and enter at next demand areas with new confirmations. Entry setup: Enter Long: 2480 Stop Loss : 2425 (70 rupees per share and one can plan their risk accordingly) Managing the trade: If the trade goes in our way *Exit half Quantity @1:1 Risk/Reward Target and Shift to SL to cost *Exit Half of the remaining with 1:1.5 or 1:2 Risk/Reward (by looking at momentum) and trail the SL. *Exit remaining with trailing Stop loss. *SECURING THE TRADE AND PROTECTING THE CAPITAL SHOULD BE YOUR FIRST PRIORITY. *NOT A SUGGESTION VIEWS ARE FOR EDUCATIONAL PURPOSES ***If you like my analysis let me know by giving boost or a comment. I will be updating.
NSE:RELIANCELong
by Mo-Kri
1
Part 1: Equity Derivatives - A Beginner's GuideWhat are derivatives? Basic interpretation : something which is based on another source. A derivative is a contract or product whose value derives from the value of the base asset. The base asset is called the underlying asset. i.e., Sugar prices will rise if sugarcane prices increase due to low production. It means sugarcane is the underlying asset of sugar because the value of sugar is associated with sugarcane. There is a broad range of underlying assets: Metals: lead, gold, silver, copper, zinc, nickel, tin, etc. Energy: coal, natural gas, etc. Agri commodities: corn, cotton, pulses, wheat, sugar, etc. Financial assets: Stocks, bonds, forex, etc. There are two types of derivatives: 1. Exchange-traded: A standardized derivative contract, listed and traded on an organized exchange. 2. Over-the-counter/off-exchange trading/pink sheet trading: A derivative product in which counterparties buy or sell a contract or product at a negotiated price without exchange Instruments of derivatives market: There are four instruments in the derivatives market: 1. Forward: Forward is a non-standard agreement or agreement between two parties that allows you to buy/sell the asset at the agreed price for a pre-decided date of the contract. Forwards are negotiated between two pirates, so the terms and conditions of the contract are customized. These are called over-the-counter(OTC). 2. Future: Future contracts are similar to forwarding contracts, but the deal is made through an organized and regulated exchange rather than negotiated between two counterparties. A futures contract is an exchange-traded forward contract. 3. Options: A derivative contract that gives the right but not the obligation, to buy or sell an underlying asset at a stated strike price on or before a specified date. Buyers of options- Pays the premium and buys the right Sellers of options - Receives the premium with the obligation to buy/sell underlying assets. 4. Swap: A swap is a derivative contract between two counterparties to exchange for the cash flows or liabilities from two different financial instruments. It is an introduction article. I will cover all these topics in detail. Swap helps participants manage risk associated with volatility risk interest rate, currency exchange rates, & commodity prices. Index: Index = Portfolio of securities An Index shows how investors experience the economy. Is it progressing or not? A Stock market index gathers data from a variety of companies of industries. The data forms an overall picture and helps investors compare market performance through past and current prices. Financial indices represent the price movement of bonds, shares, Treasury Bills, etc. Importance of Index: 1. An index is an indication of a specific sector or gross market. 2. It helps investors to pick the right stock 3. An index is a statistical indicator. It represents an overall change or part of a change in the economy. 4. In OTC & exchange-traded markets, It used as an underlying asset for derivatives trading 5. An index helps to measure for evaluation of portfolio performance. 6. Portfolio managers use indices as investment benchmarks. 7. Index illustrates investor sentiments. Types of index: There are four classifications for indices: Equal Weighted Index: Each company is given the same weightage in the composition of this index. Equal-weighted indexes are more diversified than market capitalization-weighted indexes. This index focuses on value investing. Free-float index: In finance, equity divides into different among various stakeholders like promoters, institutions, corporates, individuals, etc. A tradable stake for trading is called a free-float share. i.g, If XYZ company has issued 5 lakh shares with the face value of Rs 10, but of these, 2 lakh shares are owned by the promoter, then the free-float market capitalization is Rs 30 lakh. Free-float market capitalization: Free-floating shares * Price of shares Index: BSE SENSEX Market capitalization-weighted index: In this index, each stock is given weightage according to its market capitalization. High market cap = High weightage Low market cap = low weightage Market Cap= Current market price * total number of outstanding shares i. e, if XYZ company has 1,000,000 outstanding shares and a market price of 55 rs per share will have a market capitalization of 55,000,000. Index: Nifty 50 Price Weighted Index: High price = More weightage Low price = Low weightage Popular price-weighted index: Dow Jones industrial average & Nikkei 225 I will upload second part soon. Thank you :) Money_Dictators
Editors' picks
NSE:NIFTYEducation
by Money_Dictators
12
Nifty 50 index flat until....Nifty after the initial gallop will consolidate and would be flat, the last 90 mins were rangebound between 18667 & 18616. ADX must move over 25 to point toward a trending market. Also, price volume needs to move over its signal line else the index is expected rangebound. PIVOTS Levels R3 18742.05 R2 18693.94 R1 18664.21 P 18616.1 S1 18567.99 S2 18538.26 S3 18490.15 Disclaimer: The content provided here is purely the views of the author and traders or investors need to follow their own analysis prior or consult a financial planner prior to investing. Investments in the stock market are subject to market risk.
NSE:NIFTY
by blr.sunila
Ambuja Cement - A buy in cash segment.Feels like Ambuja cement has completed 2 waves of major trend If this is the 3rd impulse wave structure, we can see a sub wave (impulse) in it. Have a look at the RSI and volume in hourly chart. Buy zone :495-500 SL zone:465 levels Final target for this wave is 645.But depends on how we manage the trade. Managing the trade: If the trade goes in our way *Exit half Quantity @1:1 Risk/Reward Target and Shift to SL to cost *Exit Half of the remaining with 1:1.5 or 1:2 Risk/Reward (by looking at momentum) and trail the SL. *Exit remaining with trailing Stop loss. *SECURING THE TRADE AND PROTECTING THE CAPITAL SHOULD BE YOUR FIRST PRIORITY. *NOT A SUGGESTION VIEWS ARE FOR EDUCATIONAL PURPOSES.
NSE:AMBUJACEMLong
by Mo-Kri
4