PCR Trading StrategyNon-Directional Strategies
Used when you expect low or high volatility but no clear trend.
Straddle
When to Use: Expecting big move either way.
Setup: Buy call + Buy put (same strike, same expiry).
Risk: High premium cost.
Reward: Large if price moves sharply.
Strangle
When to Use: Expect big move but want lower cost.
Setup: Buy OTM call + Buy OTM put.
Risk: Lower premium but needs bigger move to profit.
Iron Condor
When to Use: Expect sideways movement.
Setup: Sell OTM call + Buy higher OTM call, Sell OTM put + Buy lower OTM put.
Risk: Limited.
Reward: Premium income.
Butterfly Spread
When to Use: Expect price to stay near a target.
Setup: Combination of long and short calls/puts to profit from low volatility.
TCS trade ideas
Basics of Volume AnalysisIntroduction
Volume is one of the most crucial yet underrated elements in trading and technical analysis. While most traders focus on price alone, professionals know that volume provides the fuel behind price movements. It answers the “how much” behind the “how far.” In simple words, volume tells us the strength or weakness of a move.
Without volume, price movement can be misleading because a rally or sell-off without sufficient participation may not sustain. Hence, understanding and analyzing volume correctly can help traders distinguish between real moves and false signals.
This comprehensive guide explains the basics of volume analysis, its role in trading, the theories behind it, and how traders can practically use it to improve decision-making.
Chapter 1: What is Volume in Trading?
Volume refers to the total number of shares, contracts, or lots traded in a particular asset within a specified time frame (such as 1 minute, 5 minutes, daily, or weekly).
For example:
If 10,000 shares of Reliance Industries are traded in one day, then the daily volume of Reliance is 10,000 shares.
In futures and options, volume refers to the number of contracts bought and sold.
In forex trading, volume is usually represented as the number of ticks (price changes) in a given time.
Key Points About Volume:
Volume measures activity and participation in the market.
High volume means greater interest and liquidity.
Low volume means lack of participation and higher risk of false moves.
Volume is relative — 100,000 shares traded in a small-cap stock may be considered high, but the same volume in a large-cap stock may be low.
Chapter 2: Importance of Volume in Trading
Why should traders pay attention to volume? Because price without volume is like a car without fuel.
1. Confirmation of Trend
Rising prices with rising volume = strong uptrend.
Falling prices with rising volume = strong downtrend.
Rising prices with falling volume = weak uptrend (may reverse).
Falling prices with falling volume = weak downtrend (may reverse).
2. Identifying Reversals
Volume often spikes at major reversal points, as large traders and institutions enter or exit.
3. Recognizing Breakouts and Breakdowns
Breakout above resistance with strong volume = reliable.
Breakout above resistance with weak volume = false breakout risk.
4. Detecting Accumulation and Distribution
High volume near support levels suggests accumulation by smart money.
High volume near resistance suggests distribution (selling).
5. Liquidity & Execution
High-volume assets are easier to trade with minimal slippage.
Chapter 3: Theories Behind Volume Analysis
Several technical analysis theories stress the role of volume:
1. Dow Theory and Volume
Charles Dow, father of modern technical analysis, said volume must confirm the trend.
In an uptrend, volume should increase as prices rise and decrease on pullbacks.
In a downtrend, volume should increase as prices fall and decrease on rallies.
2. Volume Precedes Price
Many times, volume surges before price makes a significant move. Institutions build positions quietly, and this hidden activity shows up in volume before the price breakout.
3. Effort vs. Result Principle (Wyckoff Theory)
Effort = volume
Result = price movement
If effort (volume) is high but result (price move) is small, it indicates hidden resistance or absorption.
Chapter 4: Types of Volume Analysis
1. Simple Volume Analysis
Looking at volume bars below a candlestick chart to see if it confirms price movement.
2. Relative Volume
Comparing today’s volume with average historical volume.
Example: If a stock’s average daily volume is 1 million shares, but today it trades 5 million, something important is happening.
3. Volume Oscillators and Indicators
Many indicators are built on volume, such as:
On-Balance Volume (OBV)
Volume Weighted Average Price (VWAP)
Accumulation/Distribution Line
Chaikin Money Flow
Volume Price Trend (VPT)
Chapter 5: Practical Techniques of Volume Analysis
1. Volume with Support and Resistance
A breakout above resistance with high volume = trend continuation.
A breakout with low volume = false signal.
2. Volume Spikes
Sudden large increases in volume usually precede strong price moves or mark exhaustion at tops/bottoms.
3. Volume Divergence
If price makes new highs but volume decreases, the trend is weakening.
4. Volume in Consolidation
Low volume during sideways movement = healthy consolidation.
Rising volume in sideways = accumulation or distribution.
5. Volume & Candlestick Patterns
Bullish engulfing with high volume = strong reversal.
Doji with high volume = uncertainty and potential turning point.
Chapter 6: Popular Volume Indicators
1. On-Balance Volume (OBV)
OBV adds volume on up days and subtracts on down days. It helps identify accumulation or distribution trends.
2. Volume Weighted Average Price (VWAP)
VWAP shows the average price at which a stock has traded throughout the day, weighted by volume. Used by institutions for fair value.
3. Accumulation/Distribution Line
Measures how much of a stock’s volume is flowing in or out.
4. Chaikin Money Flow (CMF)
Shows buying and selling pressure over a period based on volume and closing price.
5. Volume Price Trend (VPT)
Combines percentage price change with volume to confirm strength of trends.
Chapter 7: Volume in Different Timeframes
1. Intraday Trading
Intraday traders use volume spikes to enter momentum trades.
VWAP is critical for institutional intraday positions.
2. Swing Trading
Swing traders watch volume on breakout of ranges.
They avoid low-volume stocks as moves may not sustain.
3. Long-Term Investing
Investors analyze accumulation phases with high volume at bottoms.
Volume helps identify institutional entry points.
Chapter 8: Case Studies
Example 1: Breakout Confirmation
Suppose Infosys stock has been consolidating between ₹1,400–₹1,450 for months. One day, it breaks above ₹1,450 with 3x average volume. This confirms buyers’ strength, and price is likely to sustain upward.
Example 2: False Breakout
Another stock breaks above resistance but on very low volume. Price quickly falls back. Here, volume warned traders of a trap.
Example 3: Market Tops
At market peaks, price may still rise, but volume gradually declines. This divergence signals weakening demand.
Chapter 9: Limitations of Volume Analysis
Different Markets Measure Volume Differently: Forex uses tick volume, not actual trade volume.
False Signals: High volume can also occur due to news or rumors, leading to traps.
Not Standalone: Should be combined with price action, trend analysis, and indicators.
Institutional Tricks: Smart money sometimes creates artificial volume to mislead retail traders.
Chapter 10: Best Practices for Traders
Always compare volume with price action, not alone.
Use relative volume (compare with historical averages).
Combine with technical tools like candlestick patterns, moving averages, or VWAP.
Avoid illiquid stocks with low volume.
Watch for volume divergences — they often precede reversals.
For intraday, focus on the first 30 minutes and last 30 minutes when volume is highest.
Conclusion
Volume analysis is like the heartbeat of the market. It reveals the hidden intentions of big players, confirms the strength of moves, and warns against false signals. By mastering volume, traders can improve their accuracy in identifying trends, reversals, breakouts, and consolidations.
While volume is not perfect and should not be used in isolation, it is one of the most powerful tools when combined with price action and other indicators. From Dow Theory to modern-day VWAP strategies, volume continues to be a central pillar of trading success.
For beginners, the journey starts with simply observing volume bars on price charts and gradually moving to advanced concepts like OBV, VWAP, and Wyckoff’s effort vs. result principle. Over time, volume analysis becomes second nature, helping traders see beyond the surface of price and into the market’s underlying strength.
Option TradingHow Options Work in Trading
Imagine a stock is trading at ₹1,000.
You believe it will rise to ₹1,100 in a month. You could:
Buy the stock: You need ₹1,000 per share.
Buy a call option: You pay a small premium (say ₹50) for the right to buy at ₹1,000 later.
If the stock rises to ₹1,100:
Stock profit = ₹100
Call option profit = ₹100 (intrinsic value) - ₹50 (premium) = ₹50 net profit (but with much lower capital).
This leverage makes options attractive but also risky — if the stock doesn’t rise, your premium is lost.
Categories of Options Strategies
Options strategies can be divided into three main categories:
Directional Strategies – Profit from price movements.
Non-Directional (Neutral) Strategies – Profit from sideways markets.
Hedging Strategies – Protect existing positions.
Directional Strategies
These are for traders with a clear market view.
TCS Oversold — Eyeing a Short-Term ReboundTata Consultancy Services (TCS) is approaching oversold territory on the daily chart with RSI near 30, signaling potential for a short-term bounce. Price action is testing support, and risk is well-defined with a 1:1+ risk-reward setup. While the broader IT sector remains under watch, this setup offers an attractive opportunity for swing or short-term traders.
A rally from here likelyTCS CMP 3098
Geometry - the green lines on the left chart are lines using current market geometry. The stock is trading below it right now, but in my view it will recover. It will be a buy on a weekly close above this line.
Elliott - this downfall is the b wave of X. The c wave of X will take it to 3420 and 3670. That is where we have the iv wave. The natural place where correction end.
Fibs - the fibs are indicating 3520 and 3670 as a place of resistance.
Conclusion - Mkt is just preparing to move in the opp direction. Traders be ware.
TCS at Reasonable PriceTata Consultancy Services (TCS), a part of the Tata Group, is one of the world’s largest IT services, consulting, and business solutions companies. Here's a detailed overview of the **TCS Business Model**:
---
### 🔷 **1. Core Business Areas**
TCS operates primarily in the **IT services and consulting domain**, offering a wide range of services, including:
* **IT Services**: Application development, maintenance, testing, and infrastructure services.
* **Consulting**: Business transformation, digital strategy, and IT consulting.
* **Business Process Services (BPS)**: Outsourced business operations for clients (e.g., finance, HR, customer support).
* **Digital & Cloud Services**: AI/ML, cloud migration, analytics, IoT, cybersecurity.
* **Products & Platforms**: TCS BaNCS (for banking), Ignio (AI ops), TCS MasterCraft, etc.
---
### 🔷 **2. Revenue Model**
TCS earns revenue through:
| Revenue Source | Description |
| ------------------------------ | ------------------------------------------------------------------ |
| **Project-based billing** | Fixed-price or time & material projects for software services. |
| **Subscription-based revenue** | SaaS products and platforms. |
| **Long-term contracts** | Multi-year IT and BPO contracts with recurring income. |
| **Consulting fees** | Specialized consulting for digital transformation and IT strategy. |
---
### 🔷 **3. Key Industry Verticals**
TCS serves various industries, such as:
* **Banking, Financial Services & Insurance (BFSI)** – Largest revenue contributor.
* **Retail & Consumer Goods**
* **Telecom & Media**
* **Manufacturing**
* **Life Sciences & Healthcare**
* **Energy & Utilities**
---
### 🔷 **4. Global Delivery Model (GNDM)**
TCS uses a **Global Network Delivery Model**, combining:
* **Onshore** (client location)
* **Nearshore** (close-by country)
* **Offshore** (India-based delivery centers)
This model ensures cost-efficiency, scalability, and 24x7 service delivery.
---
### 🔷 **5. Clients & Geography**
* Serves **1000+ global clients**.
* Key markets: **North America (biggest)**, Europe, UK, and emerging markets (India, APAC, LATAM).
* Long-term relationships: >95% of revenue from repeat clients.
---
### 🔷 **6. Cost Structure**
* **Employee salaries** (largest cost, with over 600,000 employees).
* **Training and upskilling**
* **Infrastructure and data centers**
* **R\&D and innovation labs**
---
### 🔷 **7. Value Proposition**
* **End-to-end IT services**
* **Digital transformation at scale**
* **Deep industry knowledge**
* **Strong delivery and execution capability**
* **Trust and governance (Tata brand)**
---
### 🔷 **8. Growth Strategy**
* **Investing in AI, Cloud, Cybersecurity**
* **Platform-based offerings**
* **Partnerships with AWS, Microsoft, Google Cloud**
* **Geographic and sectoral diversification**
* **Upskilling employees for future-ready services**
---
### 🔷 **9. Competitive Advantage**
* Strong brand (Tata)
* Consistent financial performance
* High client retention
* Scalable and flexible delivery
* Robust risk management
---
### 🔷 **10. Recent Innovations**
* **TCS AI.Cloud**, **TCS Digitate**, **Quartz Blockchain**
* Co-innovation with clients via **TCS PacePort™ innovation hubs**
thanks
Bullish View In TCS Mark The Date & Price 24.7.25 CMP Is 3150Tata Consultancy Services (TCS) is one of the largest IT services companies globally and a flagship of the Tata Group. Here's a **detailed overview of the TCS business model**:
---
## 🧩 **TCS Business Model**
### 1. **Core Business**
TCS operates primarily as an **IT services, consulting, and business solutions company**. It provides a wide range of services across various domains using a **global delivery model**.
---
### 2. **Revenue Streams**
TCS generates revenue mainly through:
| Revenue Stream | Description |
| ----------------------------------- | ------------------------------------------------------------------------------------ |
| **IT Services** | Application development, maintenance, infrastructure, testing, and managed services. |
| **Consulting** | Business strategy, IT consulting, enterprise transformation. |
| **Digital Services** | AI, IoT, Blockchain, Cloud, Cybersecurity, and Analytics. |
| **Business Process Services (BPS)** | Outsourcing services like finance, HR, and customer care. |
| **Platform-Based Services** | Products like TCS BaNCS (banking), Ignio (AI/automation), and CHROMA (HR). |
---
### 3. **Target Industries**
TCS serves a broad range of industries, including:
* **Banking, Financial Services, Insurance (BFSI)** – \~40% of revenue
* Retail & Consumer Goods
* Telecom & Media
* Manufacturing
* Healthcare & Life Sciences
* Energy & Utilities
* Public Services & Government
---
### 4. **Delivery Model**
**Global Network Delivery Model (GNDM)** is TCS's key competitive advantage. It means:
* 24x7 service from global delivery centers
* Mix of onsite and offshore teams
* Cost-efficient and scalable delivery
---
### 5. **Geographic Presence**
* **North America** – Largest market (50%+ revenue)
* Europe
* India
* Asia-Pacific
* Middle East & Africa
---
### 6. **Innovation & R\&D**
TCS invests in innovation through:
* **TCS Research Labs** (AI, ML, quantum computing)
* **COIN™ (Co-Innovation Network)** – Collaborates with startups, academia, and customers
---
### 7. **Human Resources**
* 600,000+ employees globally
* Focus on training and upskilling (TCS iON, Elevate)
* High employee retention (among the best in industry)
---
### 8. **Key Clients**
TCS serves:
* Over **1,000 clients globally**
* 58 clients with \$100M+ annual revenue
* Long-term contracts, often >5 years
---
### 9. **Digital Transformation Projects**
TCS helps companies adopt:
* Cloud migration (via AWS, Azure, Google)
* ERP systems (SAP, Oracle)
* Industry 4.0 and automation
---
### 10. **Cost Structure**
* Major costs: Human resources, tech infra, R\&D
* Operates at high profit margins (\~24% EBIT margin)
---
### 🏆 **Strengths of TCS**
* Strong brand and Tata legacy
* Scalable and diversified portfolio
* Consistent financial performance
* Client stickiness and long-term contracts
---
Thanks
The Nuances of Trading : How to draw lines on chart (Examples)Let's Learn the Trading Together... I have started a new series of trading called #LNT (Learn the Nuances of Trading) where you are going to learn All the things which is going to help you to be a good trader.. (#TNT program)
Learning in Video : In This Video I have teach you how to draw Lines (Examples) ..
It is going to very helpful if you participate the challenges so that we can build a very good trading community..
It is my attempt to teach you the trading.. Hope you will like.
Disclaimer : It is my personal view as a trader and for educational purpose only. Equity market involves risk.
Please consult your financial adviser before taking any decision.
TCS Trade SetupStructure: Bearish (Downtrend)
Alerts:
1. Price is in the oversold zone (3180- 3200).
Buy for a long-term investment.
2. Last Swing Low is 3070. Price might touch this level also.
3. Price might retrace up to 3300 in the next few days due to the fair value gap created.
Comments:
Investment: OK
Swing & Intraday Trades: Sell on rise only
TCS BULLISH BAT formation or breakdown TCS seems to be forming bullish BAT pattern on weekly chart
RSI on daily and weekly below 40
Price below all major moving averages on daily and weekly
Price broke down 50 month EMA last week
Next Harmonic Support near 2890 - 2930 levels
Lets See How it Evolves.
Disclaimer: NOT A BUY / SELL RECOMMENDATION I am not an expert I just share interesting charts here for educational purpose and not to be taken as buy/sell recommendation. Please seek expert opinion before investing and trading as trading/ investing in market is subject to market risks. I do not hold any position in the stock as on date but I may look to take some position with my own Risk Reward matrix.
TCS - About to Break out of a consolidation Hello All,
Here is the 1H time frame of TCS which is making a triangle pattern with converging prices at the bottom its recent downtrend.
We can expect T1 once Breakout Price is reached and we get at least a 1H candle closing above the marked breakout price
Once the supply zone near T1 is cleared we can expect prices to hit T2 as well
Above T2, Sky is the Limit for TCS
TCS updated levels 3330-3320 support if comes then buy long termHow My Harmonic pattern projection Indicator work is explained below :
Recent High or Low :
D-0% is our recent low or high
Profit booking zone: D13% -D15% is
range if break them profit booking start on uptrend or downtrend but only profit booking, trend not changed
SL reversal zone : SL 23% and SL 25% is reversal zone if break then trend reverse and we can take reverse trade
Target : T1, T2, T3, T4 and .
Are our Target zone
TCS at Confluence of Resistance / EMA / ST/ GAP/ AVWAP / FIB
Between 3500-3550, TCS could face strong resistance on multiple fronts and they are listed below.
Daily SuperTrend
GAP Zone
50 DEMA at 3540 (retesting it after a long time, expect a rejection)
Fib retracement of 61.8% of the recent swing
Avwap from the recent swing (at 3530)
100% (abc pullback) from the swing low (at 1498)
Daily chart with Harmonic pattern, suggests that one more low at 3000 odd levels is due. The same is being observed as per the EW counts
Here is the chart with possible path/count/target destinations
Finally, this is a first bounce after a sharp correction; expect first bounces to be sold in to, similarly, first dip will be bought in to.
In all likelihood, I am not expecting TCS to go up much from here.. expecting a meaningful decline before resuming the upmove.
Disclaimer: I am not a SEBI registered Analyst and this is not a trading advise. Views are personal and for educational purpose only. Please consult your Financial Advisor for any investment decisions. Please consider my views only to get a different perspective (FOR or AGAINST your views). Please don't trade FNO based on my views. If you like my analysis and learnt something from it, please give a BOOST. Feel free to express your thoughts and questions in the comments section.
TCS Eyes Rebound as Strong Support and Results AlignTopic Statement:
TCS is currently oversold, with upcoming quarterly results potentially driving a rebound from strong technical support levels.
Key Points:
* The stock retraced to the 50% Fibonacci level at 3060, aligning with the psychological barrier around 3000 that acted as strong support
* Price is now stuck at the 38.2% retracement level at 3421, indicating a key resistance zone to watch
* Trading below the 200-day EMA suggests the stock is oversold, offering a rare and attractive investment opportunity in TCS
TCS descending triangle.. TCS 3419 is showing a descending triangle pattern.
Buying interest diminishing could be seen in the chart.
3480 is resistance and 3362 is support.
Signals suggest possible short weakness drop to support and then reverse to resistance
Day PCR is bearish at 0.74 while intraday at 2.34 suggests long buildup.
PUT premiums are higher than Call Premium suggests a shakeout is possible to trap the PUT writers.