RSI in trading The relative strength index (RSI) is a momentum indicator that measures recent price changes as it moves between 0 and 100. The RSI provides short-term buy and sell signals and is used to track the overbought and oversold levels of an asset.
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.
X-indicator
Option trading Options are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
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.
ADX in trading Average Directional Index or ADX is a technical analysis indicator that can determine if a market trend is strong or weak. It provides values between 0 to 100 for the same. A value between 0-25 indicates a weak trend. A value between 25-50 indicates a fairly strong trend.
The average directional index (ADX) is a technical indicator used by traders to determine the strength of a financial security's price trend. It helps them reduce risk and increase profit potential by trading in the direction of a strong trend.
option chain in tradingAn option chain lists all option contracts, including put and call option for given security. However, several traders focus on net change,' 'bid,' 'last price,' and 'ask,' columns to assess current market conditions. Option chain is also called the option matrix.
How does an option chain work? An option chain displays available call and put options for a specific underlying asset, with their strike prices, premiums, and open interest. It provides a snapshot of market sentiment and potential price movements.
Bank nifty Analysis for upcoming monthAfter analyzing the Bank Nifty charts, I am expecting a 10% fall in the index, as there are clear signs of a breakdown on the weekly and monthly timeframes. Here are the details of the analysis:
Key Observations:
1. **Support Levels:**
- Immediate support lies in the 47,000-48,000 range.
- Once these levels are broken, the next key support levels are around 43,300-44,000, indicating a potential 10% decline from the current levels.
2. **Price and Volume Analysis:**
- Volume analysis aligns with the price action, highlighting 44,000 as a strong support zone.
- A triple top chart pattern is visible on higher timeframes, which is a bearish reversal pattern, further supporting the bearish outlook.
3. **Macro-Economic Factors:**
- Weak Q3 results from companies may act as a catalyst for the decline.
- The Indian Rupee has shown signs of weakness, adding pressure on the banking sector.
4. **Foreign Money Outflow:**
- Continued sell-off due to foreign institutional investor (FII) outflows could further exacerbate the downtrend.
Important Note:
This analysis is purely for **educational purposes only** and should not be considered as investment advice. Please conduct your own research or consult a financial advisor before making any investment decisions.
Ramkrishna Forgings cmp 957.10 by Weekly Chart viewRamkrishna Forgings cmp 957.10 by Weekly Chart view
- Price Band 880 to 905 Support Zone
- Next Support Zone at 695 to 720 Price Band
- Price shouldering along Rising Support Trendline
- Price has sustained above Falling Resistance Trendline
- Volumes surged heavily last week Friday by a demand based buying
- Weekly Support at 880 > 788 > 695 with Resistance seen at 995 > ATH 1065.05
- Technical Indicators inching towards positive mode for MACD, RSI and Price trending above EMA 21, 50, 100, 200
Trade DEAD CAT Bounce like a PROThe financial markets are full of complexities, and one pattern that traders often encounter in bear markets is the “Dead Cat Bounce.” It’s a term that sounds peculiar, but understanding it can save traders from making costly mistakes. In this article, we’ll delve into what a Dead Cat Bounce is, why it occurs, and how traders can spot it to make more informed decisions.
What Is a Dead Cat Bounce?
A Dead Cat Bounce refers to a temporary, short-term recovery in the price of an asset after a significant drop. It occurs during a longer-term downtrend, often catching traders off guard with a brief upward movement, only to be followed by a continuation of the decline.
The term originates from the idea that even a dead cat will bounce if dropped from a great height, suggesting that while the asset may briefly recover, the fundamental downward trend remains intact.
Why Does a Dead Cat Bounce Happen?
Dead cat bounces typically occur for the following reasons:
1. Short-Term Overreaction: After a steep decline, markets may overreact to negative news or events. Traders and investors who feel the asset is oversold might see it as an opportunity to buy, pushing the price up temporarily.
2. Short Covering: In the case of heavily shorted stocks, a sudden uptick can occur when short-sellers decide to close their positions, which creates a temporary surge in buying activity. This is a brief recovery before the downtrend resumes.
3. Market Sentiment Shift: During bear markets, there are often moments of optimism driven by technical factors or speculative reasons. However, these moments rarely last as negative sentiment and poor fundamentals bring the price back down.
4. Technical Factors: Sometimes, a dead cat bounce occurs due to technical factors, such as support levels or moving averages being briefly tested. Traders might see these as buying signals, but the bounce often lacks fundamental backing.
How to Spot a Dead Cat Bounce?
Identifying a dead cat bounce can be tricky, especially when emotions and fear of missing out (FOMO) come into play. Here are a few ways to spot it:
1. Look for a Sudden, Short-Term Reversal: A dead cat bounce often happens quickly after a sharp decline. If a price surge seems too abrupt and lacks any substantial news or catalyst, it could be a sign of a false recovery.
2. Check Volume: Volume can be a useful indicator. If the price rises with low or declining volume, it may indicate a lack of conviction behind the move. In contrast, a legitimate recovery typically sees rising volume as new buyers step in.
3. Examine Market Sentiment: Bearish sentiment is usually still present during a dead cat bounce. Pay attention to broader market trends and news to assess if the bounce is just a temporary reaction or if there’s a legitimate shift in sentiment.
4. Use Trend Indicators: Indicators like moving averages or the Relative Strength Index (RSI) can help identify the overall trend. If the bounce occurs beneath a long-term downtrend line or fails to break key resistance levels, it’s likely a dead cat bounce.
5. Watch for a Quick Reversal: After the bounce, if the price quickly reverses back to its previous low or even drops further, it confirms the dead cat bounce pattern.
How to Trade a Dead Cat Bounce?
Trading a dead cat bounce can be risky, but there are strategies that traders use to capitalize on it:
1. Shorting the Bounce: One of the most common strategies is shorting the bounce. Traders who expect the price to drop again can enter short positions once the bounce starts to lose momentum.
2. Set Tight Stop-Loss Orders: Since dead cat bounces are often short-lived, it’s crucial to use tight stop-loss orders to minimize risk if the trade goes against you.
3. Don’t Chase the Bounce: Many traders make the mistake of buying into the bounce, expecting it to continue. Instead, wait for confirmation that the price is likely to resume its downward trajectory before entering a position.
4. Look for Confirmation in Multiple Time Frames: Examine the bounce on multiple time frames to see if there are any signs that the price might continue to trend downwards. A dead cat bounce is usually a short-term occurrence, so confirming it with a larger timeframe trend analysis is important.
Conclusion
A dead cat bounce is a natural part of the market cycle, especially in bear markets, but recognizing it early can make a huge difference in how traders manage their positions. While it may seem tempting to buy during the brief price recovery, it’s important to remember that these bounces are often short-lived and can quickly be followed by further declines.
Traders who can spot dead cat bounces and respond with a disciplined strategy, such as shorting the bounce or avoiding overreaction, can protect themselves from unnecessary losses. By understanding why these bounces happen and how to spot them, you’ll be better equipped to navigate volatile markets and improve your trading decisions.
Happy trading, and always stay vigilant!
Yes Bank Share Price Analysis**Yes Bank** is an Indian private sector bank headquartered in Mumbai, Maharashtra. Here is a brief profile of the bank:
### **Overview**
- **Founded:** 2004
- **Headquarters:** Mumbai, Maharashtra, India
- **Founder:** Rana Kapoor and Ashok Kapur
- **CEO:** Prashant Kumar (as of 2025)
- **Industry:** Banking and Financial Services
- **Products:** Retail banking, corporate banking, investment banking, wealth management, loans, credit cards, and insurance.
- **Market Position:** Yes Bank is one of the prominent private sector banks in India, offering a wide range of financial services to both individual and corporate clients.
### **Key Milestones**
- **2004:** Yes Bank was founded with a vision to provide superior banking services.
- **2005:** Received its banking license from the Reserve Bank of India (RBI).
- **2015:** Became the first bank in India to offer digital banking services.
- **2020:** Faced financial difficulties, leading to a restructuring plan spearheaded by the RBI and backed by several Indian banks.
- **2021:** Underwent significant reforms and a capital infusion to stabilize operations.
### **Core Values**
- **Customer Centricity:** Focused on providing tailored financial solutions.
- **Innovation:** Pioneered in adopting digital banking technologies.
- **Governance:** Strong emphasis on transparency and regulatory compliance.
Yes Bank has expanded its services across India, catering to various customer segments through its branches, ATMs, and digital platforms. The bank has been a significant player in promoting financial inclusion and supporting small and medium enterprises (SMEs).As of January 2025, Yes Bank does not have any individual promoters. The bank's ownership structure has evolved significantly, especially following the financial restructuring initiated by the Reserve Bank of India (RBI) in 2020.
**Key Shareholders:**
- **State Bank of India (SBI):** SBI is the largest shareholder in Yes Bank, holding approximately 23.99% of the shares.
- **Verventa Holdings (Advent International):** Holds about 9.2% stake in the bank.
- **CA Basque Investments (The Carlyle Group):** Owns approximately 6.84% of Yes Bank's shares.
- **Life Insurance Corporation of India (LIC):** Holds around 3.96% stake in the bank.
- **HDFC Bank:** Owns about 2.75% of the shares.
- **ICICI Bank:** Holds approximately 2.39% stake.
- **Kotak Mahindra Bank:** Owns around 1.21% of the shares.
- **Axis Bank:** Holds about 1.01% stake in Yes Bank.
This diversified ownership structure reflects the collaborative efforts of major financial institutions to stabilize and support Yes Bank's operations following its restructuring.
13 Jan intraday levelsDear traders, Here are the key levels for 13-01-2025 Nifty and important support & resistance for intraday, based on previous day movement and market trend.
SUPPORT LEVELS:
23,437.35, 23,188.45, 22,936.20
RESISTANCE LEVELS:
23,500.25, 23,752.50, 24,004.75
Note: Intraday view only
Trade with patience and discipline.
Bearish Reversal: Supply Zone to Profit Zone
Uptrend and Resistance Trendline : Correct Analysis: The chart shows a clear uptrend marked by higher highs and higher lows. The price eventually breaks this uptrend with a significant downward move, indicating a possible Break of Structure (BOS) and trend reversal.
Break of Structure (BOS) : Correct Analysis: The BOS is valid as the price broke below a significant swing low within the uptrend, showing that bearish momentum has overpowered the bulls.
Change of Character (CoCh) : CoCh is visible in two locations, where the price shifts from making higher highs and higher lows to creating lower highs and lower lows, indicating a bearish reversal. This confirms the weakening of the bullish structure.
Supply Zone
The supply zone is well-marked, encompassing:
Order Block : A bearish candle before the strong down move, representing institutional sell orders.
Price Imbalance (FVG) : A visible gap in price action, where sellers were dominant and buyers failed to fill the gap completely. The price often retraces to these levels before continuing its direction.
The price has rejected this zone, suggesting it’s acting as resistance.
Overbought RSI : The RSI entered overbought territory during the prior rally, followed by divergence and a downward move. This supports the idea that the bulls are losing momentum.
Targets : The highlighted demand zone around 76,000 USDT aligns with a strong historical support level. If bearish momentum persists, this zone is a logical target. Below it, the next demand zone around 68,000 USDT is valid as a long-term target.
Potential Short Setup : Given the BOS, CoCh, supply zone rejection, and overbought RSI, a bearish bias is justified. A short trade targeting the demand zones you’ve marked aligns well with the analysis.
Refinement:
Volume Confirmation: Look at the volume profile to ensure that the BOS and CoCh are supported by high bearish volume. This strengthens the bearish thesis.
Bearish Candlestick Patterns: Monitor for further bearish confirmation (e.g., bearish engulfing or pin bar) in the supply zone to increase trade confidence.
Lower Timeframe Analysis: If unsure about entry, drop to a lower timeframe (e.g., 1H or 15M) to confirm rejection or bearish structure.
Bitcoin Looks Like abc corrective wave in daily tf we can clearly see divergence on 17th December, when the price made higher high and oscillators made lower high. this is a bearish reversal divergence showing the weakness of strength. if the corrective pattern hold than BTC can take resistance at 99,902 till 101153 levels and if it falls than the support as per wave C of the corrective wave stands at 74000 till 73000.
BPCL view for Intraday 11th Jan #BPCL
BPCL view for Intraday 11th Jan #BPCL
Resistance 270 Watching above 286 for upside movement...
Support area 270-280 Below 282 ignoring upside momentum for intraday
Watching below 270 or downside movement...
Above 270 ignoring downside move for intraday
Charts for Educational purposes only.
Please follow strict stop loss and risk reward if you follow the level.
Thanks,
Bharati Airtel Ltd view for Intraday 11th Jan #BHARTIARTL
Bharati Airtel Ltd view for Intraday 11th Jan #BHARTIARTL
Resistance 1600 Watching above 1750 for upside movement...
Support area 1570 Below 1585 ignoring upside momentum for intraday
Support 1570 Watching below 1585 or downside movement...
Resistance area 1750
Above 1600 ignoring downside move for intraday
Charts for Educational purposes only.
Please follow strict stop loss and risk reward if you follow the level.
Thanks,
ICICI Bank Ltd view for Intraday 11th Jan #ICICIBANK
ICICI Bank Ltd view for Intraday 11th Jan #ICICIBANK
Resistance 1275 Watching above 1290 for upside movement...
Support area 1240 Below 1260 ignoring upside momentum for intraday
Support 1240 Watching below 1237 or downside movement...
Resistance area 1275
Above 1250 ignoring downside move for intraday
Charts for Educational purposes only.
Please follow strict stop loss and risk reward if you follow the level.
Thanks,
TATAMOTORS, Positional Trade Duration: 2-3 months
#TATAMOTORS,
Positional Trade Duration: 2-3 months
Entry: 760-780
Targets: 946, 1042, 1165
Buy on Dips till 720
Reversal from support with strong volume.
Institutions expecting a strong earning in Feb and Dec sales have been good.
No buy or sell recommendation.
HDFC Bank Ltd view for Intraday 11th Jan #HDFCBANK
HDFC Bank Ltd view for Intraday 11th Jan #HDFCBANK
Resistance 1765 Watching above 1767 for upside movement...
Support area 1740 Below 1750 ignoring upside momentum for intraday
Support 1740 Watching below 1737 or downside movement...
Resistance area 1765
Above 1750 ignoring downside move for intraday
Charts for Educational purposes only.
Please follow strict stop loss and risk reward if you follow the level.
Thanks,
Reliance Industries Ltd view for Intraday 11th Jan #RELIANCE
Reliance Industries Ltd view for Intraday 11th Jan #RELIANCE
Resistance 1270 Watching above 1273 for upside movement...
Support area 1240 Below 1260 ignoring upside momentum for intraday
Watching below 1238 or downside movement...
Above 1250 ignoring downside move for intraday
Charts for Educational purposes only.
Please follow strict stop loss and risk reward if you follow the level.
Thanks,
Zomato Ltd view for Intraday 11th Jan #ZOMATO
Zomato Ltd view for Intraday 11th Jan #ZOMATO
Resistance 255 Watching above 256 for upside movement...
Support area 250 Below 250 ignoring upside momentum for intraday
Support 250 Watching below 248 or downside movement...
Resistance area 255
Above 255 ignoring downside move for intraday
Charts for Educational purposes only.
Please follow strict stop loss and risk reward if you follow the level.
Thanks,
Bajaj Healthcare Ltd breakout seen 84% upmove possibleThis is price breakout stategy . you can use different timeframes as daily, weekly, monthly .
We scan stocks daily and try to find breakout structure after long consolidation and confirms with different timeframe and then draws some levels as price action then we make a perfect plan