Shrinking Bond Yield Differentials leading to fall in Rupee India has over the past year. by design, maintained a low interest rate environment. This has led to interest rate differentials shrinking between US and Indian bonds. While low interest rates in India are an indicator of a strong economy, a falling interest rate differential leads to capital flow out of India, thereby hurting the Rupee.
Its Budget Season in India, and at such a time if the equity markets are falling and so is the Rupee, then popular opinion gets shriller.
Hence this video to calm the nerves of investors by looking at the deeper data trends rather then falling prey to mindless cacophony.
Sensex
Sensex: Double Bottom BrokenThe Sensex has broken the double bottom support at 77,575, signaling a bearish breakdown structure. The next key level to watch is 76,000, which is now on the radar for potential testing.
Disclaimer:
This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult a professional financial advisor before making any trading or investment decisions.
#Sensex directions and levels for the second week of January:Sensex
Sensex mirrors Nifty’s structure, so we can follow the same sentiment for Sensex.
Current View:
If the week starts negatively, Sensex could reach a minimum of 78,090. After that:
* If it consolidates or breaks below this level, the correction is likely to continue.
* Conversely, if it holds above 78,090, it could turn into a range-bound market between the previous high and 78,090.
Alternate View:
If the market finds support around 78,797 and breaks the previous high, it could reach 80,501–87,300. The 87,900 level is a significant resistance, and the rally will continue only if it breaks this level. Otherwise, the market could remain range-bound.
Nifty Trading Strategy for 18th December 2024Nifty Trading Strategy
Key Levels:
Buy Above: The high of the candle which closes above 24,425 on a one-hour chart
Sell Below: The low of the candle which closes below 24,245 on a one-hour chart
Strategy Details:
Buy Signal: Enter a buy position above the high of the candle that closes above 24,425 on a one-hour time frame.
Sell Signal: Enter a sell position below the low of the candle that closes below 24,245 on a one-hour time frame.
Gap Down Risk Strategy:
If the Market Opens Lower: Around 24,200-24,240 levels
Buy Signal: Enter a buy position with a stop-loss of 24,175
Additional Tips:
Monitoring: Continuously monitor the one-hour chart for clear buy or sell signals.
Risk Management: Always use stop-loss orders to manage risk and protect your capital.
Market Conditions: Stay updated on market news and events that could impact Nifty.
Disclaimer:
I am not SEBI registered. This analysis is for informational and educational purposes only. Please consult with a certified financial advisor before making any trading decisions.
TradingBoth index futures and stock F&Os can be easily understood by tracking Open Interest. Simply put, when Open Interest increases, it means more money is moving into the futures contract, and when open interest drops, it means money is moving out of the contract.
The 90/10 strategy, popularized by Warren Buffett, allocates 90% of your portfolio to a low-cost S&P 500 index fund and 10% to short-term government bonds. This aims for long-term growth through stocks while offering stability with bonds.21 May 2024
silver Divergence TradingTrend lines are among the most accurate buy and sell indicators, along with simple moving average, stochastic, moving average convergence divergence, and relative strength index being the top trading indicators that help traders analyze the market signals effectively.
The best divergence indicators mt4 are MACD, RSI, stochastic, OA. They are user-friendly and simple but provide quite accurate trading signals. You can learn more about stochastic oscillator trading forex in the article Stochastic Oscillator: guide for using indicator in Forex trading.
Ujjivan Small Finance Bank to Go up in Mid Term and Long TermUjjivan Small Finance Bank has crossed its resistance trendline. Considering the fundamentals, the bank may struggle in mid term but a uptrend following the breakout is very likely in the near future.
Monthly Stochastic RSI also suggests that the stock is oversold right now, which indicates a reversal in a few months.
#Sensex directions and levels for December 4th.
Current View:
The sentiment looks similar to that of Nifty. If the market takes an initial pullback, it could reach a minimum 81202 or 50%. After that, if it gets rejected there, we could see a correction of 23% to 38% in the minor swing. Conversely, if it breaks through or consolidates at this zone, the rally is likely to continue.
Alternate View:
The alternate view suggests that if the market initially declines, it could reach the 38% Fibonacci level in the minor swing. However, until the 38% level is broken, it will maintain a bullish bias. If it breaks this level, we can expect a correction.
Option TradingThe four basics of technical analysis are price, volume, time, and sentiment. Price analysis involves studying historical prices to identify trends and patterns. Volume measures the number of shares traded, indicating the strength of a price movement. Time analysis looks at the duration of price trends and cycles.
What are Technical Charts and their types? In Technical Analysis, technical charts are used by professional traders to make an informed decision about the buying and selling of securities. Charts are the graphical representation of a security's price, volume, history and time intervals.
Technical AnalysisTechnical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.
What exactly are the two types of technical analysis? Chart patterns and technical (statistical) indicators are the two main types of technical analysis. Chart patterns are a subjective type of technical analysis in which technicians use certain patterns to indicate regions of support and resistance on a chart.
Option Database TradingWhen you trade options, you're essentially placing a bet on if a stock will decrease, increase or remain the same in value; how much it will deviate from its current price; and in what time those changes will occur. Based on those parameters, you can choose to enter into a contract to buy or sell a company's stock.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
Lecher for Option TraderEven if you are a beginner, options trading can be a good call. However, make sure you have an online broker to help you and a margin account ready. When your options trading is approved, the orders can be entered to trade these options.
For instance, consider buying a call option for 100 shares of Company X at a strike price of Rs. 110, with an expiry on December 1. If, on December 1, Company X shares trade above Rs. 110, you can exercise the option, buying shares at a lower price to profit from the market price.
TradingHow do I start trading knowledge?
Here's how to do it:
Consulting A Stock Exchange Broker. ...
Read Financial Research And Articles. ...
Read Books On The Share Market. ...
Attending Lectures, Classes, Seminars. ...
Monitor The Market And Analyze It. ...
Studying The Ways Of Other Successful Investors. ...
Identify And Analyze Your Risks. ...
Reduce Costs.
Risky investments and short-term trading are often likened to gambling. But there is a difference between taking a calculated risk and simply rolling the dice. The appeal of high-risk, speculative investments is obvious. You have the chance of large, even life-changing potential returns.
Database TradingWhen you trade options, you're essentially placing a bet on if a stock will decrease, increase or remain the same in value; how much it will deviate from its current price; and in what time those changes will occur. Based on those parameters, you can choose to enter into a contract to buy or sell a company's stock.
Trading options offers a number of benefits for an active trader: Options can offer high returns and do so over a short period, allowing you to multiply your money quickly if your wager is right. With options, it can cost less to get the same exposure to a stock's price movement than it does to buy the stock directly.
Advanced PCR (Put call Ratio) The Put Call Ratio (PCR) is a tool in the stock market to understand how investors feel about a stock or the market's future. It compares the number of put options to call options traded. More puts traded mean investors expect prices to fall (bearish). More calls traded mean investors expect prices to rise (bullish).
High PCR (> 1) - This indicates more put options are being traded than call options, suggesting a bearish sentiment, and traders expect the market to go down. Low PCR (< 1) - This indicates more call options are being traded than put options, suggesting a bullish sentiment, and traders expect the market to go up.
Technical Trading The technical trades programs offer more than just technical skills, students are exposed to the necessary business and technology programs used in today's current job market. Students gain the essential knowledge to operate, oversee and assist with operations.
There is virtually no limit to the profit potential of technical analysis. Profitability within the discipline largely depends on the trader's expertise, adherence to tried and tested strategies, and the amount of risk undertaken and capital employed by the trader.
Advanced Trading ConceptAdvanced traders often focus on assets with higher liquidity and volatility as these provide more opportunities for profit.
Trading refers to the process of buying and selling financial assets, including stocks, bonds, currencies, and commodities. Trading is done with the explicit goal of making profits from price changes in the short term.
#Sensex directions and levels for December 2nd. Current View:
The current view indicates that if the market starts neutral or experiences an initial decline, the immediate zone(red) will act as support. If it consolidates or breaks this level, we can expect a continuation of the correction, with a minimum target of 79136 to the minor demand zone. This is the basic structure. However, if it doesn’t break this level, it could see a pullback.
Alternate View:
The alternate view suggests that if the market sustains the gap-up and breaks the previous high, it could reach the 80170 Fibonacci level on the upside, which is a major resistance. Until we break this level, we cannot expect a continuation of the rally. If it breaks, the rally will continue; conversely, if it is rejected, it could turn into a range-bound market.
Advanced Trading The intended reason that companies or investors use options contracts is as a hedge to offset or reduce their risk exposures and limit themselves from fluctuations in price. Because options traders can also use options to speculate on price or to sell insurance to hedgers, they can be risky if used in those ways.
In all, it is not gambling but is a type of speculation hence a government employee and PSU servants are not allowed to trade in options.
Data Option Trading with Professionals Options chain can be defined as the listing of all option contracts. It comes with two different sections: call and put. A call option means a contract that gives you the right but does not give you the obligation to buy an underlying asset at a particular price and within the option's expiration date.
While not foolproof, option chains offer insights into market sentiment through implied volatility and open interest. High implied volatility suggests expected price swings, while option volumes can indicate potential support or resistance levels.
RSI Divergence RSI divergence occurs when the price of an asset moves in the opposite direction to the RSI indicator. Depending on the type of divergence spotted, this can signal a potential reversal in the market trend, either bullish or bearish.
The best RSI settings are typically a 14-period timeframe with 70 as the overbought level and 30 as the oversold level. These settings can be adjusted based on specific trading strategies.
Option TraderTrading options offers a number of benefits for an active trader: Options can offer high returns and do so over a short period, allowing you to multiply your money quickly if your wager is right. With options, it can cost less to get the same exposure to a stock's price movement than it does to buy the stock directly.
Divergence Trading Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.