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NIFTY Hourly chart BullishOne More upside likely on NIFTY as per current hourly chart analysis. NIFTY likely to form resistance around 17566.00 to 17600.00 levels. While Current Support stands at 17210.00 to 17295.00 levels. If NIFTY sustains above current support levels resistance may be reached in coming sessions. If Support levels breaches NIFTY may fall up to levels of 16850.00 again confirming the current upside as corrective pattern (bounce back rally). Purely for Educational Purpose. Do your own analysis before taking any positions in market.
NSE:NIFTYLong
by NANARKAR
Can Bank Nifty continue its sell off on 6th July?Key levels in Bank Nifty for Tomorrow: 34300 33800 33300 1)33800 & 34300 will act as a resistance from now on. 2)If market opens flat tomorrow and forms any negative pattern or candle at 33800 levels BNF can be shorted with a small SL. 3)If market opens gap down and opens around 33300 RSI might go to oversold levels for sometime and we can see some correction. In this situation we should look for sell on rise scenario. 4)As 33300 looks like a trend line support and If market stays here for long it will break it eventually. 5)Unless Market breaks 34300 levels ,market is sell on rise mode. Above 34300 ,look for price action and bullish candle sticks patterns before taking the trade. 6)Avoid taking trades If they are far away from support and resistance . Either our stoploss will become far or it will hit our stoploss in any direction. So please be careful while trading *** Above suggestions are clearly for educational purposes not any kind of Buy/Sell suggestion. * Feel free to share your thoughts.
NSE:BANKNIFTYShort
by Mo-Kri
Live Challenging Stock Market Analysis Buy ITC @ 205.35 Market Analysis Live Challenging Stock Market Analysis Buy ITC @ 205.35 Target1 @ 230.60 Buy 2 @ 177.40 Target 1&2 @ 192 Our Unique Features: ————————————————————— 1. Follow our 15 signals ….10% equity will increase in your account for sure. 2. We are not Trailing stop! or average the trades. 3. 2% Risk Management Per trade. 4. Risk vs Reward up to 1:7. Note: Trade signals would usually have a risk to reward ratio of 1:2. It means that even 2 out of 4 signals hits their SL marks, the other two would have closed with profit. This allows you to be good in overall pips profit. Signals are usually inter-day (Based on the daily candle) therefore, trades would usually have a holding time of an average minimum of 24 hours. Note: Everything works with Best money management. Note: Please leave comments for any query. Disclaimer: This is my trading experience, it is not an invite or recommendation to trade. Best Wishes Forex Tamil
BSE:ITC
by Tradingwithtamil
BANKNIFTY AnalysisSince pandemic BANKNIFTY has rallied from 16100.00 to 41000.00 plus levels. A clear impulsive rally we have seen from low to high as mark in yellow as Wave 1 , Wave 2 and Wave 3 as a Major Wave cycle. Wave 3 (Yellow) of a Major Wave Cycle seen to be extended in 5 sub waves(marked in green as (1),(2),(3),(4),(5)) fallowing all the conditions of Elliot Wave. Since completion of the Wave 3 (Yellow) a correction started and predicted to be complete at retracement levels of 0.50 or 0.618 which comes to 29000.00 below levels as marked in a green rectangle on chart where a corrective pattern A,B,C most likely to complete harmonically. This is just a prediction and not a view to take any position in market. Its purely academic in nature and once should consult his/her financial advisor before taking any action into live markets. View may change from negative to positive based on the change in fundamentals anytime. Current prevailing situations are not good for Banks & Financials so a downfall expectation is a personal view. Investment in Share, Futures & Options are subject to market risk. Risk involved here is the risk of capital involved. Stay safe. Keep Learning. Thank You
NSE:BANKNIFTYShort
by NANARKAR
TCS Buy-back & how I got it rightTCS BUY BACK & HOW I GOT IT RIGHT BACKGROUND TCS declared its Q3 results last evening and it was expected to announce a share buy-back proposal. This news was available ahead of the results and therefore, I decided to work out what could be the likely buy-back price that it may offer. Based on my observations, TCS has a tendency to cross the buy-back price and then retrace either below or around the buy-back price just when the buy-back approaches. The logic is that the scrip is unlikely to trade above the buy-back price and is more likely to fall for some time. INTENT I have holdings in the scrip so I was eager to test my logic of arriving at the likely buy-back price. In the past. I have traded TCS pre and post-buy-back with the intention to make trading gains so I may enter a trade as & when I find a good risk-reward opportunity. So my intent was to know the likely range that it may offer should I decide to buy TCS. WORKING In my view, a company that opts for buy-back of shares is either trying to compensate the shareholders from the available surplus or it may be willing to consolidate its own position as it expects improved performance in the coming periods. It could also be for both the reasons. In reality, I am not affected by their reason as long as the price offered is at a better premium than the ruling price. This will motivate me to stay put with my holdings and or induce me to initiate a new trade. My work to arrive at the price was done a day ahead of the announcement and for those who may be quick to think that what is the point in writing the article post-facto, I have pasted a link to the video where I have stated the price range that may be used for arriving at the buy-back price. On 11-1-21, TCS closed above 3900 so I kept 3900 as the base and did the following: Case 1 The offer price could be at a premium of 10% to the ruling price. So, 3900*1.10 = 4290 so I rounded-off to 4300. Case 2 The offer price could be at a premium of 15% to the ruling price. So, 3900*1.15 = 4485 so I rounded-off to 4500. The reason for 10% is that it is a good enough incentive to the shareholders to tender the shares and is more than the returns that a debt instrument would give. The reason for 15% is that the company may want to top up the premium with a hidden component of dividend which is otherwise taxable. My conclusion was that TCS may offer the buy-back within this range with 4500 being the cap as I felt anything more would mean that the company may be doing social service than rewarding its shareholders. My reading was that the shares would in any case not cross 4000 immediately as TCS has the tendency to go sideways to negative post results and as the time elapses from the result release, it goes down if the sentiment is not positive. CONCLUSION Since I have some holdings in TCS, I am happy that a part of that would be tendered at the final price that the company may announce . I now have a range of 600 points from 3900 to 4500 which is available for me to decide about trading the scrip subject to the right set-up and more importantly funds availability. I am now encouraged to test the approach for such announcements that the other companies may make. Here is the link to the video: youtu.be I would be happy to read your feedback. Thank you, Umesh 13-1-22 Not SEBI Regd. Shared for the purposes of Educational & Informational purposes only.
NSE:TCS
by AVENUESOFINVESTMENT
Pledging of Shares for Trading/InvestingPLEDGING OF SHARES/SECURITIES FOR TRADING/INVESTING BACKGROUND A “pledge” means something given as a security against an obligation extended by the recipient of the pledged security to the person who owns the security. For example, A pledges 100 shares of Company X valued at INR100,000 to secure a loan of INR75,000. In the above case, there may be an interest element as well depending upon the type of the arrangement that the borrower and the lender have agreed upon. In the world of stock markets also it is possible to pledge the shares owned/held by a person to obtain additional margin against the shares/specified securities that have been pledged. In the above example, if A wanted to have additional margin to trade by placing his entire holding of 100 shares, he may receive say INR80,000 as collateral funded margin. There is a reduction of 20% which is known as a “haircut” or safety margin applied by the lender. The readers may find more details about it on the websites of the respective brokers. INTENT The intent of this article is to share my thoughts on the purposes for which pledged securities could be traded. Based on my reading on the Zerodha support portal, I could not find how long pledging the securities is possible. As such I assume that there is none. Of course, there will be Risk Management time limits, but that is beyond the intent of the article. Based on my reading it appears that against the pledged securities, one can obtain margin for the following only: Intraday Equity Trading Long Futures contract Short Futures Contract Options Writing or Selling of Options The above clearly indicates that anyone who is pledging his/her securities should be clearly aware about the associated risks and should be at least partially active trader if not a full time trader. The question that I have is: Why should I not be allowed to buy equity shares or ETFs of non-pledged entities within the overall margin made available to me? Trading/Investing as such carries its own set of risks so any trading that is funded by pledging would also attract a similar or even greater element of risk. It is common knowledge that the risk factor or the quantum of risk increases if the trade that is undertaken is leveraged as against a purely non-leveraged trade. Let me explain this by way of some examples. Collateral Margin Available: 100,000 Ledger Balance Credit Available: 75,000 As per SEBI regulations, for the purposes of trading against margins for Futures and Options contracts, at least 50% of the funds requirement should be made available by way of credit from the ledger. The lowest margin required for Jan 2022 Futures contract is in Nestle - 86,926 or say 90,000. The lot size is 25. My Collateral would get adjusted on account of price variations and even Marked to Market or MTM would also be impacted with every move in the price of the future. Assuming the future moves down by 100 points, i would be down by 25*100 or 2,500. So my MTM would be -2,500. I must ensure that I have sufficient credit in the ledger to take care of the MTM variations. As against this, consider the scenario where I choose to buy Equity Shares of Nestle, Based on the CMP of 19,400, I would be able to buy only 5 shares from out of the available margin. This means my exposure and risk is down by 80%! 5 shares against a lot of 25. However, the current process does not allow me to go long on shares and instead, it makes me choose in line with the options given above. I am fine with intraday equity as an option for trading, but what is the logic in allowing me to trade in leveraged products that carry far greater risk and not in less risky equity shares. If you consider the example of Options Writing, then it is even worse as sometimes, Call/Put prices could go through the roof and could put the entire capital of the trader in danger. Then comes my final point - On what logic a Writing of Options is allowed which carries far greater risk than Option Buying which has a limited risk? Some more questions: Why is SEBI comfortable with this kind of a situation? Is SEBI protecting the interests of the retail traders/investors by not allowing equity shares, but allowing Futures & Options trades? Why are not brokers not bothered about this? Is this because leveraged products would give them a better revenue stream than the equity? Why are we retailers so silent about this? I would be happy to receive feedback from the fellow traders/investors, who would like to use the pledge facility by paying a nominal charge to earn incremental income from the markets and not from the view point of making a fortune out of the trades undertaken using the pledging facility. Happy Trading/Investing, Umesh 29-12-21
NSE:NESTLEINDEducation
by AVENUESOFINVESTMENT
Phillips Carbon - Long Term Buying OpportunityPhillips Carbon Black Limited , a part of RP-Sanjiv Goenka Group, was set up by Mr. K. P. Goenka in 1960 in collaboration with Phillips Petroleum Company, USA, with the core objective of substitution of the import of carbon black. PCBL is the largest carbon black manufacturer in India and a strong global player with a significant customer base in 40+ countries. The company also produces specialty carbon blacks which are used as pigmenting, UV stabilizing, and conductive agents in a variety of common and specialty products, including plastics, printing & packaging, and coatings. Product Portfolio: The company is in the business of manufacturing carbon black and specialty blacks for B2B. Carbon black is used in tyres, non-tyre rubber & non rubber products & the specialty carbon black is used in plastics, inks & toners, paints & coatings, batteries, etc. Manufacturing Capabilities: The company owns and operates 4 strategically-located manufacturing facilities in Mundra, Palej, Kochi & Durgapur which presently operates at combined capacity of 5,71,000 TPA of carbon black along with 76 MW of co-generation power. The capacity utilization for FY20 was 86%. Global Presence: It is the largest carbon black company in India & the 7th largest producer globally. It has presence across 40+ countries across the world & is the largest Indian exporter of carbon black. Presently, its export sales volume accounts for 29% of revenues. Research & Development: Company owns 2 R&D centres in India & Belgium which focuses on improvement of process and machine technology yield improvement feedstock efficiency customization of grades and new product development. It have spent 41 crores on R&D in last 3 years. PATENTS: They have obtained the 'Patent Grant Certificate' for two PCBL inventions. FUNDAMENTALS: > It is a Small Cap company with a market cap of Rs.4,170 Cr. The company have grown significantly over last few years. > The ROCE and ROE is at 17% and 17% respectively which is very good considering the size of the company. Positive. > Price to Book Value ratio is 2.16 which means the company have overall stable fundamentals and not very costly too. Positive. > Stock P/E is at just 10 which makes the valuation very attractive as compared to the industry P/E at 25. Positive. > OPM of the company is continuously growing and it is at 19% as per Mar 21 Balance Sheet. Positive. > Robust Topline and Bottomline, continuously increasing on QoQ basis. Rapidly increasing on QoQ basis after the Covid slowdown. > Debts: The company have Debts of only Rs.607 Cr as per Mar 21 Balance Sheet which is much within the limit as compared to its Reserves. Company have a vision to reduce it’s debts by allocating a portion of generated cash towards debt repayment. > Reserves: It is Rs. 1,901 Cr as per Mar 21 Balance Sheet. Continuously increasing since last 8 years. > Promoters holding is intact at 53.56% since more than last 10 years, like they trust their own business and staying invested. No change at all. > FIIs & DIIs are also heavily invested in the company, combined holding will be at 8.72% which is growing on YoY basis. TECHNICALS: > The stock has given V Shape recovery after the covid fall, this kind of recovery is not very usual. This shows the stock strength. > On the chart stock is continuously in UPTREND since March 2020 Covid fall. > Increasing Long Volume towers as indicated by blue box at the bottom indicates that lot of accumulation is going on in the stock continuously. Compare this volume with last 1.5 year volume and you will be able to spot the difference. > Trading above 100 and 200 DMAs this talks about the strength in the bull run of this stock. Its key clients include major companies like MRF, Apollo, JKTyre, TVS Tyres, CEAT, Nexen Tyre, Goodyear, Michelin, Bridgestone, Yokohama, Continental AG, etc. Its top 10 clients of the company accounts for nearly 65% of total revenues. One of the few companies in the world to meet US FDA requirements for direct/indirect food contact applications. During the year it has developed customized ASTM carbon black grades for major tyre customers. It plans to expand its specialty black capacity by 32,000 TPA by 2021 & its carbon black capacity by 1,50,000 TPA by 2023. Company have strong financials and numbers are continuously increasing on YoY basis specially after the Covid slowdown. It has also increased its production capacity very recently, investing in R&D to add more products to its portfolio, aggressively focusing on reducing its debts. Almost all renowned tyre manufacturing company is heavily dependent on this company for their carbon requirements. The company have great client base. It certainly is a good buy. Fresh Buy - Above Rs.256 Old Buy – Hold Target – Immediate target 315, Hold till in UPTREND Risk Management Tip: Never invest more than 5% of your capital in any single stock. Your likes and comments motivate us to bring more profitable studies like this. Happy Investing! ShareMktSchool
PLong
by ShareMarketSchool
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