Consolidation in Uptrend, Can touch ATHVCP pattern, Possible breakout to ATH and beyond respecting 200 and 50 DMALongby TheSoberTrader1
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 Education09:16by AVENUESOFINVESTMENT1
a very good confluence of trend line and channel pattern here are two possible cases which are mentioned by using diagram this script is for medium term swing. good fundamental stock .those traders who are wishing for a good swing in fmcg sector they should go for this Longby mahhisingh0
Nestle Buy Above 19500Nestle Buy Above 19500. Risk Reward 1:1. Has held 50 EMA for a long time. Chance to rise with the marketLongby vijurajan001Updated 0
Nestle Ltd Long @ Rs 19,051/- or below buy 1 share or multipleNSE:NESTLEIND Entry 19,051/- or below Target 20,050 + SL 18,495 Time: 2-3 Week Nestle Ltd is trading at 19,142 and started getting support at the demand zones in the price range of 18,546 to 19030/-. Buy and hold for the 2-3 weeks. Disclaimer: the author may enter in trade, take your own decision , This is a trading idea, not a trading or investment advice Longby praveen.guptaUpdated 221
Swing Opportunity in NestleGo Long above 19096.05 for Targets of 19522.05, 19948.05, and 20374.05 with SL 18670.05 Reasons to go Long : 1. On a daily timeframe if we draw the Fibonacci retracement tool from recent swing low (point A) to recent swing high (point B) then we see stock took support from 0.618 Fibonacci level. 2. A bullish chart pattern, Double Bottom (W pattern) is formed around 0.618 Fibonacci level. 3. In addition to this there is a strong demand zone (marked with purple color), from which the stock initially faced resistance but now is taking support and moving up. 4. Also the stock gave a trendline breakout. Longby Nimish_GhagareUpdated 4
BUY NESTLE INDIA 17650-17700 FOR TARGET OF 18900 WITHING 1 MONTHNESTLE INDIA SURE-SHOT SWING TRADE SETUP. IT HAS TAKEN SUPPORT ON 50MA AND RISING GREAT. IT ALSO MAKING ONE OF THE PERFECT HARMONIC PATTERN. SO IT'S GOING FOR THE 18900 TARGET FOR SURE. Buy around 17650-17700 Stop loss = 17350 Target = 18000,18500, 18900 Longby sudam0001Updated 2
NESTLE Long SetupBuy NESTLEIND at 19600 with Stop loss of 18670 for the target of 20530 and 21460 Longby asgharali791
Nestle Can Give a sharp move.Nestle moving in narrow range. forming Inside bars. The dotted line is life high of nestle in April 20. Since then nestle didn't gave a proper sustainable close above that high. Tried once to close above it but was easily rejected. Now that high is coinciding with the upper rang of the narrow range marked. This major hurdle zone can be taken out with a sharp move. if you observe closely the last 3 bars are the biggest, stock is moving in expansion phase. In this phase stocks give trendy moves & breakouts.Longby varadtambolkarUpdated 5
NESTLEIND: Ready for an upmoveCnsolidating in a support zone for upmove. Track for break out in 15 min Timeframe and enter the trade. Rest self explanatory in the D chart.Longby anilbenny3
Nestle India LimitedTriangle breakout in Nestle India Limited along with bullish MACD crossoverLongby Swing_Trading_Chart1
TARGRT ACHIEVED @ NestleToday after the days closing NESTLE got me a profit of $5.87 in Paper Trading though, but I believe this won’t stop until I get 3% returns. I got a very nice trade which was predicted by me days ago. You can see that in my ideas… NSE:NESTLEINDLongby UnknownUnicorn24364034Updated 223
DAILY SWING CALL // Wednesday 28th of July 2021 NSE: NESTLEINDDAILY SWING CALL // Wednesday 28th of July 2021 // NSE:NESTLEIND // This is a swing trade call and not an intra-day trade. Please do not expect the stock to go up on the same day of posting or within a few sessions. Please follow the notes along with the posting before, during and after entering the trade // CMP / LTP: 18000 TARGET: 20700+ (15% Around) STOP LOSS: 16200 (10% Max) Standard Notes: - Please follow the Stop Loss strictly and preferably on a daily closing basis. - Recommended Profit Booking / Exit is on +12-15% & If you still want to hold the stock, trail the SL once this target is achieved. - Duration: 15-20 Trading Days is suggested for all my trades and is an indicative period. - If SL / Target are not triggered and you still wish to hold the trade, this can be done as long as SL is followed or trailed. Disclosure: I may or may not have a position in this trade. Disclaimer: All the recommendations are subject to market conditions. Please trade at your own risks.Longby Amit_PadishalwarUpdated 2
NESTLE - Retest Structure - Investment/Trading opportunityThe analysis is done on daily TF hence price may take few days to few weeks or even months in order to reach the targets. Trade setup is explained in image itself. The above analysis is purely for educational purpose. Traders must do their own study & follow risk management before entering into any trade Checkout my other ideas to understand how one can earn from stock markets with simple trade setups. Feel Free to comment below this or connect with me for any query or suggestion regarding this stock or Price Action Analysis.Longby TradewithAditya0
SHORT NESTLE (DESCENDING TRIANGLE)Today i.e. 4th Nov NESTLE formed a DESCENDING TRIANGLE pattern so It indicates a Short signal with my fav ‘1.4 Risk/Reward Ratio’ and claim your target in a few days… NSE:NESTLEINDShortby UnknownUnicorn24364034Updated 1
Nestle KitKatDiwali Cant be complete without chocolates & FMCG big sales Without kitkat --> by Einstein1512
Nestlewhat do you think will this fall complete or not?? well, it is in 3rd wave for 4th wave a correction is needed if it corrects then i will update when to buy...by TRADING_DUNIYA0
NESTLEIND - good to accumulate. Will move higher from hereonNESTLEIND- beaten down. Should move higher from now after good result Longby tvamev0
Nestle India Supply ZoneShort in the Quasimodo level and keep you stoploss above MPL line, Your target should be nearest demand zone(MIP or BUFL).Shortby prakashraj172512
Nestle India Supply ZoneShort in the Quasimodo supply zone, and Keep your stoploss above MPL line. And your target should be nearest demand zone(MIP or BUFL)Shortby prakashraj172511