LET THE MARKET TELL WHO WE ARE

#NIFTY #INDEX currently trading at 13438, down by 90 from previous close. Today index has opened gap down and taken out the low placed yesterday at 13449 triggering primary weakness in market for the day. Immediate support is now placed at 13390, retest to this level can’t be ruled out but stability below 13390 will result in to further weakness and then attempt towards 13350-13310 zones can’t be ruled out. Key support will be at 13300 and further stability below that level will bring more weakness. Resistance is now placed at day high which stands at 13488, any sustained move (Less likely) above that level will bring some relief to bulls and then attempt towards 13540-13590 can be seen.  On #option_chain heavy #call_writing is being done at 13500-13600 strikes where as short covering is visible in 13450 and 13500 puts whereas longs build up seen in 13400 puts with high volume. Based on current #OI position level of #option_pain stands at 13400 thus based on current data at 10:52AM...

  LIC HOUSING FINANCE settled at 321.90 up by 5.78% on Tuesday. Stock had been staying in a consolidation phase that took shape of an ascending triangle and in today’s session it broke through the resistance line of this triangle consolidation and settled well above key resistance of 312 suggesting dominance of bulls. Stock has been staying above its 9 days SMA on daily chart keeping a short-term bullish trend in picture. Stochastic is now approaching overbought territory along with bullish cross above its signal line suggesting a strong bullish momentum. MACD has been staying in positive territory and now its parting upward from its signal line suggesting development of fresh bullish momentum. Direction and momentum are two important components for any chart to anticipate future price movement and current trend and momentum on chart provided above is suggesting bullishness. Breakout of triangle pattern can be used to determine potential destination for current move and if th...

  Gold spot international currently trading at $1916 up by $15. Gold has been staying within the range formed on August 11, 2020 by a strong bearish bar. It has found multiple supports near the areas of $1870-1860 which is also stands near the low headed by that bearish bar as discussed above. This entire consolidation within the range of bearish bar has taken shape of a descending triangle and now price has climbed above resistance line of this tringle suggesting bullish potential. Price had been staying below 35 days SMA since its bearish cross below SMA during month of August this year but now it has crossed above the same and formed a complete bar above the moving average suggesting bullish developments on MA crossover front. Based on current developments on chart gold is likely to remain bullish as long as it holds above $1885 and having a strong resistance placed near the areas of $1930-1935 zones. Sustained move above $1935 will further strengthen bullish outlook and then it...

Sometimes, in unfavorable circumstances it becomes bit difficult to take a directional view on entire market or on a particular asset. But in financial markets we have seamless opportunities even at the times when your systems are not able to take a directional view on an asset or when fundamental and technical are not streamlined. Ratio trading is one of those opportunities. In past we suggested a ratio trade in gold and silver while gold silver ratio was at 120 and today this ratio stands at 76. Means people who traded this opportunity could bought 120 kg of silver by selling 1kg gold and now they can buy 1kg of gold just by selling 77 kg silver means this opportunity has earned you 43kg silver. Today again I am back with my analysis on BANK NIFTY and NIFTY ratio. Current Bank nifty- Nifty ratio stands at 1.94. Areas of 1.90 has served as good support for this ratio since 2012. However, this ratio has hit 1.62 during 2013 but was not able to spend much time in that territory and ...

  Success is not getting a highest paying job but success is when you get enough free time for yourself you can do whatever you want you can go wherever you want to go without concerning about your job and effecting your lifestyle.  Generally people waste their early age in preparing for govt. Jobs and they put their energy and time for preparing job but among those only few people get the govt. Jobs and rest stay jobless with wasted time of 3 to 5 years of their graduation and mostly spend their life jobless or with mediocre salary.   In India people In their early age after graduation don't have much pressure from family for earning and they usually use this time to prepare for competitive exams  for job and take some courses and among them only few people get job and rest remains jobless and then they keep blaming the system for their unemployment.  Let's take an example to understand magic of starting earning and saving in early age.  Because in ea...

This company is engaged in manufacturing of non-ferrous gravity and pressure die casting. Stock has last closed at 1387. Recently stock has made a higher low at 1294.95 compared to previous low at 1010.20 during the month of March after Corona outbreak. It’s a small cap company and according to last closing company stood at a market capitalization of 2807 crore. On price front company is trading near the lower end of 52 week’s high low range and also stock is staying below 50 and 200 days SMA keeping this stock in down trend on technical front. This company has yoy sales growth at 23.05% and 5 years annualized sales growth stands at 18.19% which can be considered a good thing. Return on equity stands at 18.76% and 5 years average return on equity stands at 17.85% and can be considered good. Debt to equity ratio stands near 3.29 and interest coverage stands at 2.16 times. Leverage ratios are not very attractive and one must be cautious before taking any investment decision i...

DATE           13/05/2020                                   HUDCO        Last closed   21.45  CMP   23.9    ROE                       11.29%                              ROCE                     8.43%                     DEBT/EQUITY    ...

#NIFTY index settled at 9859.90 up by 306.55 points on Thursday. It was a trading holiday in India on Friday but #SGX_NIFTY witnessed good decline on Friday that will cause a gap down opening in domestic markets today. On Friday nifty successfully tested its 50 days SMA that stands near 9836. Now areas of 9800 will remain crucial to watch out in next few days. If market consistently holds above 9840 zones then we will see this index retesting areas of 10100-10700 zones. A death cross between 50 and 200 days SMA has already taken place during the month of March 2020 and it has been observed in past when a down trend is triggered by a death cross it can last up 8 months 16 months easily. Market is already up by 31% and further upside from these levels seems less likely but still if index manages to hold above 9840 consistently then one must be ready for a retest to 10100-10600 zones. Areas of 10700-10800 will remain a crucial turning point. Crucial support is placed at 9300-9250...

In social media groups sometimes, I see people posting stock charts like I have posted above and then start discussing whether operators are active in this stock or there is some kind of manipulation and all that. However, I am not denying possibilities of manipulation but in a market, which has high level of regulatory framework is not that easy to manipulate.   But there is also investing/trading common sense that cause this type of movements in market. There is an investment theory called 'Efficient market hypothesis'. This theory states that it is not possible to outperform the market whether you have access to technical analysis, financial information or any other insider information.  In technical analysis we always use a statement called 'Price discounts everything' means Every information that could influence the price is already incorporated in to price.  So now the question is, is it possible to make money in market using technical or fundamen...

CIPLA Ltd.    Last closed   449.2 ROE                                  9.62% ROCE                               10.94% DEBT/EQUITY                  0.23 EPS                                  20.69 EV/EBITDA                       9.97 P/E        ...

Nifty index settled at 7801.05 yesterday. Index reversed sharply after hitting a low of 7511.10 and formed an indecisive candle which managed to hold Monday’s low on closing basis. Price action witnessed on Tuesday showing indecision along with increased volatility. Increased volatility along with indecisive candle which is protecting previous low closing basis suggests tough war between bulls and bears and closing above previous close suggests bulls are wining against bears. In today’s session 7740 will remain crucial support for Nifty spot. Failure of this level might attract fresh selling for the day and then attempt towards 7650-7550 could be imminent. Key support will be at 7500 and stability below this level will open the doors for attempt towards 7350-7200 and more down side. Stability above 7740 will keep chances for a recovery and any cross and stability above 8000 will result in a rally towards 8400-8700. This index might try filling of gap left at 8744 on Monday. Overall ...

Trading community believes that bullions like gold and silver are safe heaven investments. If there is a fall in financial securities like stocks and bonds bullion attracts safe heaven demand means money moves out of equity and gets into commodities like gold and silver. This is the common logic that entire trading community uses, but market psychology tells a different story.  In trading psychology we believe assets might be different but traders are not. Thus, when a serious fall starts it doesn't matter if you are in equity or commodity like gold, silver, crude. They all will fall. Perhaps severity of fall might be different but direction will be the same.  Most traders usually have positions in more than one financial assets. When one falls they have to sell some other assets to pay the additional margins and this creates a viral infection that moves from assets to assets or from equity to commodity. In such times, demand supply and other fundamental considration...

#SBICARDS #IPO has opened today and will close on March 4, 2020. Its an #book_building issue having a price band of 750-755. A strong hype is created for this issue and reminding me of #RPOWER which was offered in 2008 and #investors never got its offer price back in secondary market after listing day. Recently we had very successful IPO of #IRCTC at time of listing this #company was offered at 320 rupees which was 18.77 times of its annual earnings. IRCTC is a company which operates in an #industry which have no competition and have sustainable competitive moats till date. However, #SBI cards is having 18-20% market share in credit card industry and there are lots of other players offering same product. However, big market share for this company will play favorable  role for this company but there will always be a threat from competition. This company is having very strong competitors like #ICICI and #HDFC. SBI is showing annual earnings per share arou...

Nifty has settled at 11132.75 witnessed a sharp recovery after hitting a low of 11036.25. This index has been consistently holding above 24 times of its Price to Earnings Ratio since May 2017 and it is now fluctuating between 30 and 24. According to Friday’s closing NIFTY closed at 11201.75 and PE stood at 25.49 which translate earnings for entire index somewhere around 439.45. If this time also nifty replicates past behavior and reverses from 24.30 times of it’s earning then areas of 10700-10500 can be potential support. Areas discussed above are also important based on technical analysis. Market formed a bottom 10637 just before the announcement of corporate tax rate cut and then market rallied. This time again we can see this index finding support somewhere around 11000 zones, but if this level is taken out then 10700-10500 will be imminent. How market responds near 10700-10500 will decide destiny for the market. Recovery from those levels is likely where as stability below 105...