Investingopportunity
How to categorize trends?In times like these when markets are moving down so much from the high point, it is important to understand this chart.
In a Bull market, the market consistently makes higher highs and higher lows. When the market starts moving lower, people start fearing an incoming bear market or a crash. But it is important to note that, if the market is down <10% from all time high, it is not enough to be considered a correction.
A correction is when the market is trading between 10% and 20% lower from the all time high. Currently Nifty 50 is only down 7.5% from the high point. Hence, it cannot really be termed as a correction yet either.
A bear market is defined when the prices are trading more than 20% from the all time high. This point is very very far away for Nifty and it would have to go down below 12,350 for it to be considered a bear market.
In my opinion, if one is a long term investor, all dips on the market are good opportunities to start buying more shares. It is not possible for any one predict and buy right at the bottom of the dip. Hence, I consider the current market situation to as a time to accumulate small quantities of stocks which you can keep adding to if the market dips further.
McDowell/United Spirits, Can turn out good lonterm betAll observations noted on chart.
This stock is moving from consolidation to consolidation
There is wedge pattern also visible, please check the attached link
View neagtes below 450 to 480 on monthly close basis
Please note view is for long term. Always try to buy near the lower trend line.
Chart Of the Week (04 Jan 2021)*Stock has given a bullish Inverted H & S Pattern breakout on weekly chart & closing above neckline .
*02 years long term trend line breakout already happened.
*If we look at the volume part, significant volume activity is witnessed at the time of breakout.
*Price has also trading all the important moving averages.
*Considering all technical evidences we may see good up move in Tin Plate Co of India.
CMP-167.00 RECO-Buy Entry Range-Rs.155-170 Target-225/325.00 Stop Loss- 145 closing basis
Duration- 06 to 09 Months.
Thanks for reading and kindly let us know if you have any questions.
Investment stock Buy above 64.00* Consolidate near 0.5 Fibonacci ratio and Rounding Base Formation in bottom.
* Buy above 64.00 with the SL of 48.00 Closing basis and the target is 73.00 and 110.00 .
* Marksans Pharma is engaged in Business of Formulation of pharmaceutical products.
*Company is almost debt free.
* Debt/Equity - 0.03
* Market Cap - ₹ 2,376 Cr.
Pullback completed in Nifty Energy Index.* Pullback completed in Nifty Energy Index.
*Inverted H & S pattern Breakout.
*Track this stocks from CNX ENERGY INDEX
Bharat Petroleum Corporation Ltd.
GAIL (India) Ltd.
Hindustan Petroleum Corporation Ltd.
Indian Oil Corporation Ltd.
NTPC Ltd.
Oil & Natural Gas Corporation Ltd.
Power Grid Corporation of India Ltd.
Reliance Industries Ltd.
Tata Power Co. Ltd.
Thanks for reading and kindly let us know if you have any questions!
Medium Term Investing Idea - CPSE ETF - ( Exchange Traded Fund)The CPSE ETF is made up of equity investments in 12 of India’s largest public sector companies. Owned 55% or more by the Government of India and listed on the NSE.
It is an Index fund. CPSE ETF Full form is Central Public Sector Enterprises. It's an Exchange, Traded Fund.
The government of India wanted to divest some of its holdings in CPSE and decided to divest such funds through ETF.
Below are the 12 of India’s largest public-sector companies, where CPSE ETF money is being invested.
Bel Coal India Cochin Shipyard NBCC NHPC NCL India NMDC NTPC Oil India Ongc Power Grid SJVN
Since the last few weeks CPSE companies showing good upside movement. You can track the Nifty CPSE Index.
Here is a technical overview of the Nifty CPSE Index and it's 12 constituent.
NIFTY CPSE INDEX - It's making higher highs and higher lows, an uptrend, and broke out of consolidation.
1) NSE:BEL - It is in strong uptrend, doubled form it's march 2020 low. One can apply pullback trading stategies on this stock.
2) NSE:COALINDIA - A government's cash cow. Paying healthy dividends. Coal India awaiting triangle breakout.
3) NSE:COCHINSHIP - Price is trading above previous resistance zone. Buy on pullback can be applied on this stock.
4) NSE:NBCC - Making higher high - Higher lows, Uptrend. Price is approaching trendline resistance.
5) NSE:NHPC - Price brekaout previous resistance.
6) NSE:NLCINDIA - Price breaking mltiyear trendline resistance.
7) NSE:NMDC - Clear uptrend is visible. Making higher highs and Higher Lows.
8) NSE:NTPC - Ntpc showing good momentum. It a clear uptrend. Price breaking trendline resistance.
9) NSE:OIL - Price is breaking out of a consolidation.
10) NSE:ONGC - Price breaking bullish flag formation.
11) NSE:POWERGRID - Price making higher highs - higher lows, an uptrend.
12) NSE:SJVN - Price breaking out of a triangle.
Above is the drilling down of the Nifty CESE Index. Idea is to invest in NSE:CPSEETF for a medium-term.
CPSE ETF is Trading at 19.45/ Expecting 20 to 25% return over the medium-term. On can track the Nifty CPSE Index for stop-loss and trade management.
Below is an exit rule that I will track if anything goes wrong. We must have an exit plan as well if the trading idea or investment idea goes wrong. Risk management is a must in trading and investing. We are trading and investing in probabilities if our investing goes south we need to have an exit plan. This is not a trading idea, so a clear level if the stop-loss is not required here. Because there can be multiple entries in investing and that depends on your investing style such as investing timeframe, position-sizing, and capital allocation, and risk appetite. However, in trading and investing, we must have an exit plan.
Below is a Stiff Pitchfork tool. Price is trading above the median line. Upper and lower median lines are set a specified number of standard deviations away from the median.
One can use the breakout of a lower line as a stop-loss.
Your comments and criticism are welcome.
Thank you.