lecture for option traderOption trading gives the buyer the right but not the obligation to buy (call option) or sell (put option) a certain underlying asset at a predetermined price within a stipulated period. Options trading involves strategies that provide traders with various market positions to make gains or mitigate the spot market risk.
You don't need a considerable sum of money to become an options trader. You can start small with a capital of less than Rs 2 lakhs too. However, as you start small, you need to be a careful trader so that you can cut down on the possibility of losses and enhance the return potential of your trades.
Stockmarketanalysis
Option chain Option chains provide specific data related to options contracts, including strike prices, expiration dates, implied volatility, and open interest. Traders use this data to construct options strategies, manage risk, and profit from price movements in the underlying asset.
NSE's online Real time Data Feed. NSE's real time data is provided in various levels (level 1, level 2, level 3 and tick by tick) across segments such as Capital Market, Futures & Options, Currency Derivative and Wholesale Debt Market.
Nifty option chain is considered to be the best advance warning system of sharp moves or break outs in the index.
Technical trading Technical analysis is a trading strategy used by investors to identify new investment possibilities. To anticipate future price movements of stocks or other assets, for example, past price and volume data is studied and shown on graphic charts, where trends, patterns, and technical indicators can be identified.
Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
RSI divergence indicatorAn RSI divergence occurs when the indicator and price begin to reach different levels, indicating a change in momentum that precedes a change in price direction. For example, a bullish divergence occurs when the security makes a lower low but the indicator forms a higher low.
What is the best RSI setting for divergence?
What is the best RSI setting for divergence? The default RSI setting is a 14-period, which works well for most traders. However, shorter settings (like 7) increase signal sensitivity, while longer settings (like 21) reduce noise and offer more reliable signals, especially for long-term trading.
BPCL-A Review for 8th Jan'23 ideaInverse Head and Shoulders Continuation:
This pattern forms in an extensive upside rally. It consists of a left shoulder, a head, and a right shoulder.
At the end of the left shoulder, a minor correction takes place on the upside which happens on the low volumes comparatively the starting of the left shoulder. After this again a down move can be seen on large volumes forming a head having its bottom is below the left shoulder following an upmove correction on lower volumes & completing the head.
The completion of the head must be above the top of the left shoulder. If the prices rise above the top of the left shoulder then too this pattern remains intact. In the end, the right shoulder is formed usually on smaller volumes comparatively the previous two rallies.
Now if you connect the tops of the left shoulder, head & the right shoulder there will be a formation of the ‘Neckline‘. This line will act as a decision line. If the prices break this neckline & give closing above the line, this will be the confirmation of the breakout of the Inverse head and shoulders pattern.
However, it has been noticed that after breaking of the neckline the prices again attracted towards this neckline. We say this phenomenon as a retest of the neckline which will add some more confidence while trading this pattern.
After retesting if the prices again start rising, this will be the final confirmation of the up move as shown above.
The bookish target of this pattern is taken as the vertical price range from the bottom of the head to the neckline & the bookish Stop loss should be the bottom of the right shoulder. However this stop loss can be big, so it is advised to keep a stop loss of 4-5% of the price range below the neckline.
TRADING STRATEGY:
Buy on CMP 355-54 zone , keeping SL of 320 look for the target of 415-430 zone.
My big loss 2,18,000/- IN EXPIRY 13-4 Stoploss Vs. Account closeLearning topic : Learn from your loss
Be flexible in market movement do not attach to one setup only, Always take seriously your stoploss do not ignore your loss target.
If your back testing movement is accurate for 70% then also real market movement can wipe your 30% and you can have a big loss which will make your funds to 00.
When such situation comes where you make your funds 00, after that take gap for atleast 4-6 weeks to gain confidence as without stable mind you cannot trade properly.
NSE:Wonderla - I am wondering....where is stock going 🎡
Wonderla Holidays is engaged in the business of Amusement Parks and Resort.
KEY POINTS
IPO and promoter group
Wonderla came up with their IPO in April 2014 to raise 181 cr. which went into funding their upcoming amusement park in Hyderabad, that was operationalized in 2016 . The company was setup by Kochouseph Chittilappilly in 2000, the same promoter group also founded V-guard brand of stabilisers and runs V-Guard Industries/
Amusement Parks
Wonderla currently has three operational parks, one each in Kochi, Bengaluru and Hyderabad established in 2000, 2005 and 2016 respectively. The Bengaluru park also has a resort with 4 banquet halls and 84 rooms
Average revenues over the last 5 years (FY15 to FY20) have been ~79 cr. in the Kochi park and ~116 cr. in the Bangalore park. As Hyderabad park was operationalized only in FY17, revenues have grown from ~57 cr. in FY17 to ~74 cr. in FY20.
Upcoming Parks and expansions
A fourth park is being setup in Chennai at a cost of over 300 cr. The company is currently under discussion with the Chennai state government to resolve certain tax issues, after which construction activities will resume. The park has received exemption on entertainment tax for 5 years from the date of commencement of commercial operations or 01-10-2021 (whichever is earlier).
Wonderla is also in discussion with the Odisha state government to setup a park in Bhubaneswar on an asset-light model, where land will be taken on lease and the total cost for setting up the park will be ~100 cr.
Wonderla also plans to build a resort in Hyderabad similar to the one in Bangalore
Revaluation of reserves
Land was revalued in FY17 which caused equity reserves to go up from ~346 cr. in FY16 to ~684 cr. in FY17.
Miscellaneous
- Wonderla manufactures and maintains their rides in-house lowering cost of construction compared to if they were imported
- Wonderla spends 8-10% of their revenues in advertisement and sales promotions
- Wonderla's business is seasonal in nature with higher footfalls in June and December quarters corresponding to summer break and festive season respectively.
4 Good trades with index ideas for 19 july I daily make educational content videos on financial markets
** NIFTY AND BANKNIFTY ANALYSIS & PREDICTION FOR TODAY 14 MAY **CUT YOUR LOSES, CONTROL YOUR EMOTIONS, PROTECT YOUR CAPITAL DONOT GO ALL IN "
NIFTY MEIN GAP DOWN THEN MIGHT RECOVER. FLAT AND RANGE BOUND MARKET TODAY
NSE:NIFTY & NSE:BANKNIFTY Resistance & Support levels : Provided in the video
THANKS FOR WATCHING.
If want to know my Trading Approach for tomorrow. Please stay connected with me.
Jai Hind.
Disclaimer:
This video is only for educational purposes. Please consult your financial advisor before you take any trades. I am not a SEBI Registered Analyst.
AMARAJABAT - High Probability of bullish movement.On the chart pattern of AMARAJABAT, we have found a breakout and retest of the falling wedge. The stock is trading near the support zone. Let it break the high of previous candle and you can make a long entry.
** NIFTY ANALYSIS FOR TOMORROW 05.04.21There is a detachment of Nifty 50 with Asian Market. Showing Market is looking the at the serious factors of India.
Nifty 50 Setup – Flat Market expected. trade cautiously
Market’s Next Key Levels –
Resistance:
R1: 14670 R2:14780 R3 1883
Support:
S1: 14579 S2:14516 S3 14459
Factors NSE:NIFTY to Look Out –
1. Rising Covid numbers leading to lockdowns.
2. Global Market and Bond Market.
3. Rising 10 yr GSEC Bond yield of US.
My Opinion : On Monday 8 am please stay connected with me.
Jai Hind.
Disclaimer:
This video is only for educational purposes. Please consult your financial advisor before you take any trades. I am not a SEBI Registered Analyst.