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Greenply vs Greenpanel: A Clash of Plywood and MDF Giants!About Companies Greenply Industries NSE:GREENPLY is a prominent player in the plywood industry, dedicated to the production and trade of plywood and its associated products. Their extensive range features plywood, block board, wood flooring, medium density fiberboard, flush doors, and decorative veneers. Founded in 1984 by Shiv Prakash Mittal, the company operates out of Kolkata, India. In 2018, Greenpanel Industries NSE:GREENPANEL emerged as a separate entity from Greenply Industries, concentrating on the manufacturing of MDF boards and related products. Their product lineup includes wood flooring, veneers, flush doors, and more. Market Capitalization ● Greenply Industries - ₹ 4,751 Cr. ● Greenpanel Industries - ₹ 4,849 Cr. Technical Aspects Greenply ● The monthly chart reveals that the stock price encountered significant resistance around the 340 mark, resulting in a sharp decline that brought it down to the 70 level, where it found support. ● After an extented phase of consolidation, the stock formed a Double Bottom pattern. ● Once this pattern broke out, the price surged upward, and nearly 6.5 years later, in July 2024, the stock successfully broke through the previous resistance zone. ● Having maintained its position above this breakout level, the stock price is poised for further gains. Greenpanel ● After reaching a remarkable high close to 625, the stock faced a considerable downturn. ● It later found a solid support at the 260 level, which set the stage for its recovery. ● Nevertheless, the stock ran into resistance around the 430 mark, caused another retreat to the previous support zone. ● Currently, with a fresh upward trend, the price exhibits significant growth potential. Revenue Breakdown ● Greenply Industries generates a remarkable 77.4% of its total revenue from plywood and associated products, establishing itself as a dominant player with a 26% market share in the domestic plywood sector. ● In contrast, Greenpanel Industries focuses heavily on MDF boards, which make up an astounding 91% of its total sales, securing a 21% market share in the domestic MDF industry. Sales & Profit Analysis ● Greenply ➖ In the last three years, this company has experienced an impressive compounded annual growth rate of 23% in sales. ➖ However, profit growth has been modest, increased by only 3% during the same period. ➖ The company currently holds an operating profit margin of 9%, which is deemed acceptable. ➖ In the fiscal year 2024, earnings per share have dropped to 5.44, down from 7.44 in FY2023. ● Greenpanel ➖ Over the past three years, this company has achieved a compounded annual growth rate of 15% in sales. ➖ In contrast, profit growth has been exceptional, soaring at a 26% CAGR during the same period. ➖ Currently, the company boasts an operating profit margin of 16%, a noteworthy figure. ➖ However, in fiscal year 2024, earnings per share have declined to 11.64, down from 20.92 in FY2023. Valuation ● P/E Ratio ➖ Greenply Industries currently has a price-to-earnings (PE) ratio of 48.75, which is marginally above its 1-year median PE of 48.1, yet it aligns closely with the industry average PE of 48.75. ➖ On the other hand, Greenpanel Industries shows a current PE of 33.94, indicating it may be overvalued relative to its 1-year median PE of 25.2, but it appears undervalued when compared to the industry PE of 48.75. ● P/B Ratio ➖ Greenply has a PB ratio of 6.69, suggesting it is considerably overvalued. ➖ However, Greenpanel Industries has a PB ratio of 3.68, which, although somewhat high, does not indicate overvaluation. ● Intrinsic Value ● Greenply is presently valued at ₹984, a figure that is approximately 2.4 times its intrinsic worth of ₹158. This suggests that the stock is currently overvalued. ● Conversely, Greenpanel has a market price of ₹395, roughly 1.5 times its intrinsic value of ₹259, which similarly indicates that this stock is also overvalued at this time. Product Demand analysis (Plywood vs MDF) ● Greenply presently has an inventory turnover ratio of 4.2, an improvement from 3.96 three years ago. ● In comparison, Greenpanel Industries shines with a current inventory turnover ratio of 5.08, a substantial increase from 3.71 three years earlier. ● These figures clearly indicate a rising demand for MDF products, highlighting a promising trend in the market. Company Capex ● Greenply has significantly reduced its capital expenditure, slashing it to 123 crore from last year's 412 crore, indicating a lack of a robust capex program. ● In contrast, Greenpanel has made a remarkable leap in its capital investments, raising its capex to 344 crore from just 80 crore in the previous financial year. Debt Analysis ● Greenpanel Industries stands strong with a manageable debt of 296 crores and a favorable debt to equity ratio of 0.22, indicating that debt is not a concern for the company. With an impressive interest coverage ratio of 16, Greenpanel is well-equipped to handle its loan repayments without any issues. ● Other side, Greenply Industries carries a higher debt burden of 549 crores, reflected in a debt to equity ratio of 0.77. With an interest coverage ratio of only 3.33, the company may face challenges in meeting its loan repayment obligations. Cashflow Analysis ● Greenply has experienced an impressive increase in its operating cash flow, jumping to 111 crore from a mere 62 crore in FY23. ● Greenpanel Industries has struggled to convert its profits into cash, with its operating cash flow declined significantly to 135 crore from 337 crore in FY2023. Shareholding Pattern ● Greenply ➖ Foreign Institutional Investors (FIIs) are dramatically raising their investments. In the latest June quarter, their stake has surged to 4.91%, a notable increase from just 2.15% in June 2023. ➖ Meanwhile, Domestic Institutional Investors (DIIs) currently hold 30.33% as of the June quarter, down from 32.41% last year. ● Greenpanel ➖ Foreign Institutional Investors (FIIs) are consistently divesting their positions in this stock, with their current ownership now at a mere 2.12%, a significant drop from 4.3% a year ago ➖ In contrast, Domestic Institutional Investors (DIIs) are steadily boosting their investments, with their current stake rising to 26.71%, up from 21.60% in June 2023. Some Important Facts ● Shifting Demand From Plywood to MDF ➖ Worldwide, the consumption ratio of MDF to plywood stands at 80:20; however, in India, this ratio is notably reversed, with plywood dominating at 20:80 as of 2022. ➖ Industry experts predict that by 2030, this ratio in India will shift to an even 50:50. ➖ This shift indicates significant growth opportunities for the MDF sector in India, particularly as it is poised to capture a larger share of the low and medium-grade plywood market, which currently makes up 85% of the plywood industry in the country. MDF Industry Growth Drivers ● Growth of Online Home Décor Platforms ➖ The growth of online home décor platforms like Pepper Fry, Fab Furbish, and Urban Ladder has increased the need for ready-to-assemble (RTA) furniture, impacting the MDF industry directly. ● Reduction in Furniture Cycle Time ➖ The increasing popularity of stylish, comfortable furniture crafted from MDF has significantly reduced the home renovation timeline, slashing it from the previous 15 to 20 years down to just 7 to 8 years. ● Cost Advantage Over Plywood ➖ MDF is much cheaper than plywood because it is made from leftover wood materials, both hardwood and softwood. Conclusion ➖ After examining all the factors, it appears that the MDF industry is poised for significant growth in the near future, outpacing the Plywood sector. As a result, companies such as Greenpanel Industries are likely to reap substantial benefits, which will have a direct positive effect on their share prices.
NSE:GREENPANELLong
by GoodluckCapital
2
Bodalchem - Darvas Box Pattern The stock has formed DARVAS BOX on the DAILY chart wait for Breakout. View is valid till the stock first gives Breakout above buy level, please ignore if stock goes below the stoploss before Breakout given One can enter above 88 with a strict Stoploss of 76 Target 1 - 98 Target 2 - 108 Target 3 - 118 #SWING TRADE What is your view please comment it down and also boost the idea this help to motivate us. All views shared on this channel are my personal opinion and is shared for educational purpose and should not be considered advise of any nature.
NSE:BODALCHEMLong
by JJJ-555
IOC - Flag and Pole Pattern - Swing TradeThe stock has formed flag & pole pattern on the weekly chart. One can enter above 186 with a strict Stoploss of 163 Target 1 - 220 Target 2 - 240 Target 3 - 269 #SWING / LONGTERM TRADE #FUNDAMENTALLY STRONG STOCK What is your view please comment it down and also boost the idea this help to motivate us. All views shared on this channel are my personal opinion and is shared for educational purpose and should not be considered advise of any nature.
NSE:IOCLong
by JJJ-555
PVR - Positional Long SetupCMP 1349.30 The stock is showing reversal signs in the last few sessions. The logics are indicated on the charts. MACD is also showing reversal signs even on weekly charts. Above all, the risk-reward is pretty good at this point. If gains momentum over 1350, targets may be 1460/1550/1640. If sustains below 1300, that will show weakness on the charts. One has to plan an exit according to risk management. Only for learning and sharing purposes, not a piece of trading advice in any form. All the best.
NSE:PVRINOXLong
by anandlive
Federal Bank vs Karur Vysya Bank: Which is the bettr investment?The Bank Nifty NSE:BANKNIFTY stands at the 50,500 level, reflecting a decline of approximately 5.3% from its all-time high. When evaluating private banks, HDFC NSE:HDFCBANK , Axis NSE:AXISBANK , ICICI NSE:ICICIBANK , and Kotak Mahindra NSE:KOTAKBANK typically emerge as top contenders for investment. However, in the mid to small-cap arena, Federal Bank and Karur Vysya Bank have shown remarkable resilience and performance over the past few months, outpacing the broader banking sector. Let’s delve into some crucial factors that can guide us in determining the most promising investment opportunity at this moment! Market Capitalization ● Federal Bank NSE:FEDERALBNK - ₹ 49,883 Cr. ● Karur Vysya Bank NSE:KARURVYSYA - ₹ 17,459 Cr. Relative Strength ● The chart clearly illustrates that the Bank Nifty has delivered an impressive return on investment of approximately 15% over the past year. However, Federal Bank and Karur Vysya Bank have far surpassed this figure, achieving remarkable returns of around 54% and 82%, respectively. This indicates that these two banks are currently excelling far beyond the overall bank index. Cost of Liabilities ● The liabilities cost for Karur Vysya Bank is at 4.8%, notably lower than Federal Bank's 5.14%. This indicates that Karur Vysya Bank has a greater ability to secure funds compared to Federal Bank. CASA Ratio ● The CASA ratio, which measures the proportion of deposits in current and savings accounts to total deposits, is a crucial indicator for banks. A higher CASA ratio signifies a reduced cost of funds, as banks typically do not pay interest on current account deposits, and the interest rates on savings accounts are generally quite low, around 3-4%. ● In this instance, the CASA ratios stand at 30.39% for Karur Vysya Bank and 29.56% for Federal Bank, highlighting Karur Vysya Bank's superior position over Federal Bank. Non-performing Asset (NPA) Analysis ● Over the past four years, the net non-performing assets (NPA) for these two banks have seen a remarkable decline. ● In the latest quarter, Karur Vysya Bank reports a net NPA of just 0.4, while Federal Bank follows closely with a net NPA of 0.6. Total Provisions ● Discussing the NPA without considering the overall provisions presents an incomplete picture. Both banks have experienced a notable decline in this crucial factor. ● For Federal Bank, the total provisioning for FY24 is only 196 crore, a stark reduction from 750 crore in FY23. Similarly, Karur Vysya Bank's total provisioning for FY24 stands at 728 crore, down from 1,039 crore in FY23. Net Interest Margins (NIM) ● Karur Vysya Bank boasts a superior net interest margin (NIM) of 3.75, significantly outpacing the Federal Bank's NIM of 2.87. ● A NIM below 3 is generally viewed as unfavorable for banks. highlighting the strength of Karur Vysya Bank in this key metric. Advances Growth (%) Analysis ● An increase in advances growth signifies a bank's ability to efficiently provide loans. The 20.4% rise in advances for Federal Bank surpasses the 16.68% growth seen at Karur Vysya Bank, showcasing a more robust lending capability. Valuation ● PE Ratio ➖Federal Bank's current price-to-earnings (PE) ratio is 12.4, which exceeds its 1-year median PE of 9.0. Compared to the industry average PE of 11.83, this suggests that the stock is not excessively overvalued. ➖On the other hand, Karur Vysya Bank has a current PE of 10.2, which is marginally above its 1-year median PE of 9.8. Given the industry PE of 11.83, this indicates that Karur Vysya Bank is significantly undervalued. ➖When analyzing the PE ratios, it becomes clear that Karur Vysya Bank holds a more advantageous position. ● Intrinsic Value ➖The Federal Bank is currently trading at ₹204, while its intrinsic value stands at ₹228, indicating that the stock is undeniably undervalued at this time. ➖On the other hand, Karur Vysya Bank's market price is ₹217, but with an intrinsic value of only ₹146, it clearly shows that the stock is currently overvalued. Technical Aspects ● From a technical standpoint, both stocks exhibit a similar pattern and appear to be currently overextended. Any pullbacks could provide a valuable opportunity to take positions. Conclusion ● Upon evaluating all the key factors, it is evident that Karur Vysya Bank NSE:KARURVYSYA is in a more advantageous position than Federal Bank NSE:FEDERALBNK ; however, this does not imply that Federal Bank is struggling. Both banks offer promising investment prospects. As the economy grows, a fundamentally strong bank is expected to consistently surpass the overall banking sector.
NSE:FEDERALBNK
by GoodluckCapital
3
Bajaj Finance - An AnalysisThe stock has been traveling into a rising wedge pattern for the last 2 years. Presently near the lower edge of the wedge. Reversed from the support on a red trendline many times. If reversed from here, may go into a bullish phase. If breaks the red line support ( around 6500) may come to the lower edge of the rising wedge pattern (around 6200). Analyze according to your own setups. Act wisely and patiently. The Above illustration is only my own view, only for learning and sharing purposes, not a piece of trading advice in any form. All the best.
NSE:BAJFINANCE
by anandlive
Welspun Corp could excel in your Investment PortfolioInvestment Advice by Gooodluck Capital (SEBI Registered) Buy Welspun Corp NSE:WELCORP ● Buy Range (1) - CMP (current market price) ● Buy Range (2) - 660 - 665 ● Buy Range (3) - 620 - 630 ● Target - 960 - 970 ● Stoploss - below 500 ● Potential Return - 50 - 52% --------------------------------------- Approx investment period 18 - 24 months Company Overview Welspun Corp Limited manufactures and sells steel pipes, coatings, plates, and coils in the US, Europe, Saudi Arabia, and India. The company offers helically, longitudinally, and electric resistance welded pipes, pig iron and ductile iron pipes, billets, thermo mechanically treated rebars, stainless steel pipes, tubes, and bars. Its products are used in various industries, including oil, gas, water transmission, infrastructure, and defense. The company was incorporated in 1995 and is based in Mumbai, India. Sector - Iron & Steel Technical Analysis (1) In January 2008, the stock faced significant resistance around the 500 level, leading to a substantial price correction. (2) Over time, it established a support base near the 45 level, from which it began to rebound, climbing back towards the 300 level. (3) However, the stock struggled to break past the 300 threshold and eventually retreated to its former support. (4) Following this, it entered an extended phase of consolidation until it finally broke through the 300 level in July 2023. (5) This pivotal moment propelled the stock into strong upward momentum, culminating in a multi-year breakout at the 500 mark after nearly 16 years. (6) Subsequently, the stock not only maintained this breakout level but has also begun to steadily rise. Entry, Target & Stop-loss ● Entry with Capital allocation strategy (1) consider adding 40% of your desired quantity at the current market price. (2) The second buying opportunity will be in the 660-665 range, where you can also add another 40% of your quantity. (3) If the price dips to the 620-630 range, that will present the best buying opportunity. Make sure to reserve 20% of your quantity to take advantage of this level. ● Target Chart analysis indicates a promising upside potential of above 50% for this stock from the current level, with a target around the 960 to 970. There is also a strong likelihood that the stock could exceed this target. ● Stoploss It is crucial to implement a strict stop-loss below the 500 level, as we anticipate that the stock may encounter challenges if it drops to this point. Fundamental Analysis ● Stock Valuation ● (1) Intrinsic Value ➖ The current price-to-earnings ratio for the stock is 14.5. ➖ The median price-to-earnings ratio for the stock over the past year stands at 15.4, while the earnings per share for the trailing twelve months is 45.55. ➖ This leads us to calculate the intrinsic value of the stock as follows: 15.4 * 45.55 is equals to 701.47. ➖ With the current market price hovering around 695, which is below the intrinsic value of 701, it clearly indicates that the stock is considerably undervalued right now. (2) P/B Ratio The present PB ratio for this stock stands at 3.06, indicating a slightly high valuation but not reaching overvalued territory. ● Debt Analysis ● (1) The company's current debt is Rs. 1,949 crore, which is quite minimal compared to its market capitalization of Rs. 17,249 crore. (2) With a debt-to-equity ratio of just 0.35, it’s evident that the debt level is relatively low for this type of capital-intensive business, providing the company with the flexibility to secure additional funding as needed. (3) A glance at the balance sheet reveals a significant reduction in debt, dropping from Rs. 3,381 crore last year to the current Rs. 1,949 crore. ● Revenue Break-up ● (1) Product wise break-up The company generates its revenue through three primary product categories: ➖ HSAW Pipe, which accounts for approximately 76% of the total revenue, ➖ LSAW Pipe, contributing close to 15% of the total revenue, ➖ ERW Pipe, responsible for about 8% of the total revenue. (2) Location wise break-up The company derives approximately 54% of its revenue from India. Additionally, Welspun Corp. operates facilities in the USA and Saudi Arabia, contributing around 8.6% and 34.2% to its overall revenue, respectively. ● Profit & Loss Analysis ● (1) Over the past three years, this stock has achieved an outstanding compounded annual growth rate of 34% in sales. (2) The cumulative profit increase over the past three years has been an impressive 21%, indicating a strong upward trend. (3) The profit margin has seen a significant boost, rising to 9% from 5% YoY. For the fiscal year 2024, the growth in earnings per share is striking, skyrocketing to 42.41 from 7.90 in fiscal year 2023. ● Cash Flow Analysis ● Operating cash flow has seen a remarkable surge, soaring to 1,306 crore from a negative 185 crore in FY23. ● Shareholding Pattern ● (1) As of the June 2024 quarter, the promoters own a notable 50.03% stake in the company. (2) Goldman Sachs possesses a notable 10.51% share in the company, reflecting a slight decline from 10.70% in March 2024. (3) Domestic Institutional Investors (DIIs) have reduced their stakes since the previous quarter, yet they still hold over 9%, which remains quite significant. ● Conclusion ● The steel industry in India is set for expansion, bolstered by new government initiatives. Lower import duties on essential raw materials, combined with heightened public investment in infrastructure and housing, are anticipated to greatly enhance the sector's performance. Therefore, we are excited to see how Welspun Corp will thrive in the near future.
NSE:WELCORPLong
by GoodluckCapital
1
Nifty View 06-08-2024NSE:NIFTY Nifty has rebounded from 23,890 to 24,350, a gain of approximately 450 points. However, upon applying the Fibonacci retracement from 25,078 to 23,893, we observe that the 0.38 Fibonacci level coincides with the 24,350 zone. Notably, Nifty encountered selling pressure once again at this level. The market is currently experiencing significant selling pressure and a general sense of weakness. At present, there are two potential outcomes. 1. If Nifty decisively close below the 23890 zone, we can anticipate a potential decline towards the 23200 level in the near future. 2. In the event that the Nifty holds the 23890 zone and establishes a double bottom formation, there is a possibility of a market reversal or a range-bound movement between the 24400 and 23900 zones. Always respect SL & position sizing =================== Trade Secrets By Pratik =================== Disclaimer Not SEBI REGISTERED This is our personal view and this analysis is only for educational purposes Please consult your advisor before investing or trading You are solely responsible for any decisions you take on basis of our research
NSE:NIFTY
by Trade_Secrets_By_Pratik
NATCO PHARMA: A Multiyear Breakout Set to Double Your Investment Investment Advice by Goodluck Capital (SEBI Registered) Buy Natco Pharma NSE:NATCOPHARM Buy Range- 1210 - 1220 Target- 1950 - 1960 Potential Return- 60-62% Approx investment period 12 - 14 months TECHNICAL ANALYSIS NSE:NATCOPHARM (1) Back in 2017, Natco Pharma encountered several rejections around the 1,050 level, leading to a subsequent decline. (2) The 500 level has emerged as a crucial support point, allowing the stock to bounce back from this threshold. (3) Although the stock made an attempt to surpass its trendline resistance in July 2021, it ultimately fell short, resulting in another correction before finding support at the 500 level once more. (4) Since March 2023, the stock has been on an upward trajectory, successfully breaking through the resistance level in July 2024. Following this significant multi-year breakout , there is a strong expectation that the stock will remain above the breakout zone, paving the way for a robust upward rally. ● ENTRY & EXIT LEVELS - Look for the best buy levels between 1,210 and 1,220, as this is also the breakout level. However, if the stock begins to consolidate at that level and subsequently breaks out, the upper boundary of this consolidation could present another lucrative entry point. - Based on the chart analysis, it appears that there is a 60% upside potential for this stock, hovering around the 1,950-1,960 level. Moreover, there is a possibility that the stock may surpass this level. FUNDAMENTAL ANALYSIS NSE:NATCOPHARM ● PE RATIO - The stock's current PE stands at 16.9, slightly higher than the 1-year median PE of 14.2 but lower than the 5-year median PE of 26.3. - With an industry PE of 36.6, the stock appears undervalued. ● PB RATIO - The present PB ratio for this stock stands at 3.96, indicating a slightly high valuation but not reaching overvalued territory. ● DEBT TO EQUITY RATIO - The company's debt to equity ratio of 0.06 indicates that it is nearly debt-free. ● PROFIT & LOSS ANALYSIS - Over the last three years, this stock has experienced a remarkable compounded annual sales growth rate of 25%. - The cumulative profit increase over the past three years has been an impressive 49%, indicating a strong upward trend. - The profit margin has seen a significant boost, rising to 44% from 35% YoY. - The EPS growth for FY24 is remarkable, soaring to 77.5 compared to just 39 in FY23. ● CASH FLOW ANALYSIS - There is a substantial increase in operating cash flow, jumping by almost 43% to 1,212 crore from 849 crore in FY23. ● SHAREHOLDING PATTERN - The promoters have consistently held their stakes at 49.71% over the past three quarters. - Over the last four quarters, FIIs have been steadily increasing their investments, in contrast to DIIs who have been offloading their stakes.
Editors' picks
NSE:NATCOPHARMLong
by GoodluckCapital
5
Bata - Long SetupIt is clear from the chart that the price is at the long-time support level of around 1550. if bounces back from this level, may go into a bullish phase. That may carry the price to 1720/1770 and even more. Long time target seems around 2100. This setup fails if the price trades below 1515 for a couple of days. Unless it comes above 1550 again. This point in time is good for this buy setup in terms of risk-reward ratio. This illustration is only for learning and sharing purposes, not a piece of trading advice in any form. All the best.
NSE:BATAINDIALong
by anandlive
MARKET CRASHNSE:NIFTY TVC:DJI US market 1929 vs 2024 Is it just coincidence or is history going to repeat itself ?? Great Depression, was a worldwide economic downturn that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world, sparking fundamental changes in economic institutions, macroeconomic policy, and economic theory. Similarities and differences between the microeconomic conditions during the start of the 1929 market crash and those in 2024. Similarities Credit Expansion and Financial Innovation: 1929: The 1920s saw significant credit expansion, with many Americans buying stocks on margin (borrowing money to buy stocks), leading to inflated stock prices. 2024: Similarly, the 2020s have seen rapid credit expansion globally, with innovations in financial products and increased borrowing, contributing to elevated asset prices1. High Leverage: 1929: High leverage was prevalent, particularly in the stock market, where investors borrowed heavily to invest. 2024: High leverage is also a concern today, not just in stock markets but across various sectors, including real estate and corporate debt1. Financial Sector Vulnerabilities: 1929: The financial sector was vulnerable due to speculative investments and lack of regulation, leading to bank failures. 2024: Today’s financial sector, while more regulated, still faces vulnerabilities from high leverage and interconnected global markets1. Economic Contraction: 1929: The U.S. experienced a severe economic contraction, leading to the Great Depression. 2024: There are concerns about economic contraction due to various factors, including high inflation, geopolitical tensions, and slowing growth in major economies. Differences Policy Responses: 1929: The policy response was slow and inadequate. The Federal Reserve’s actions were limited, and there was a lack of coordinated fiscal policy. 2024: Today’s policy responses are much more proactive. Central banks and governments have implemented significant monetary and fiscal measures to stabilize economies. Globalization: 1929: The global economy was less interconnected, with the U.S. being the primary driver of the economic downturn. 2024: The global economy is highly interconnected, meaning economic issues in one region can quickly spread to others. This interconnectedness also allows for coordinated policy responses. Technological Advancements: 1929: Technological advancements were limited, affecting communication and the speed of economic activities. 2024: Technological advancements have transformed economies, enabling faster communication, better data analysis, and more efficient markets1. Regulatory Environment: 1929: There was minimal regulation of financial markets, contributing to speculative bubbles and bank failures. 2024: The regulatory environment is much stricter, with measures in place to prevent excessive risk-taking and ensure financial stability. Conclusion While there are some striking similarities between the microeconomic conditions of 1929 and 2024, particularly in terms of credit expansion, high leverage, and financial sector vulnerabilities, the differences in policy responses, globalization, technological advancements, and regulatory environments are significant. These differences suggest that while there are risks, the tools available to manage economic downturns are more robust today. ======================== Trade Secrets By Pratik ======================== Disclaimer NOT SEBI REGISTERED This is our personal view and this analysis is only for educational purposes Please consult your advisor before investing or trading You are solely responsible for any decisions you take on the basis of our research.
TVC:DJI
by Trade_Secrets_By_Pratik
7
Understanding Risk-ManagementThe stock is trading at lower prices if you see last month's movements. In the last few days, it formed a double bottom and again came down to lower levels. If reverses from these levels, a bull run may come. The risk-reward ratio is good at this point. 1. If we enter at 940 while considering the stop-loss at 860 - the loss will be 60 points. 2. If prices go in our desired direction, the final target comes at 1500 - the profit will be 560 points. So we have to keep our position size in a way that if we have to exit at a loss, that should be manageable for us. This means we should be ready for that loss. Else while going in profits, we may exit at the first target of 1140. Let's calculate the quantity of 25. If we have to exit at a stop-loss of 860 - the loss will be 2000. If the price reaches the first target of 1140 - the profit will be 5000 if the price reaches the final target of 1500 - the profit will be 14000 We should always keep our position size in accordance with our risk capacity. Risk management is a general concept in every aspect of our life and normally we follow this other than the stock market. Only for learning and sharing purposes, not a bit of trading advice in any form. Please do your own analysis before taking any trade or consult your financial advisor. All the best.
NSE:AFFLE
by anandlive
4
Infosys - A Long ViewCMP - 1627 on 04.07.24 The weekly chart shows the support and resistance to the price movement. If crosses 1680 and sustains above, it may go into a bullish phase. Possible targets are 1730/1850/1900++ MACD is also showing a possible crossover. At the the time of crossing 1730, we will complete the head & shoulder pattern formation which is in progress right now. Keep in mind that the support seems around 1510, which can be seen at any time of correction. Better to make the strategy according to the cash segment, which allows us to accumulate many times. If the price trades below the triangular pattern, this setup will go weak. Always plan your trade, in any case, the risk-reward ratio must be good. Don't hesitate to exit when hitting your risk management. This illustration is only for learning and sharing purposes, not trading or investment advice in any form. All the best.
Editors' picks
NSE:INFYLong
by anandlive
9