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Showing posts from May, 2020

Pre-Market analysis

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) Nifty spot closed at 9580.30 on friday while nifty future closed at 9482.25. 2)Banknifty spot closed at 19297.25 on friday while Banknifty future closed at 19297.25. 3)Global markets-Us markets closed flat on friday. 4)Today asian markets are trading higher while us and europe futures are trading flat and sgx nifty is trading higher at spot level-9643 +129 pts at 7.00am. 5)We may open in green with 140-150pts gap-up. 6)sgx is trading higher as due to reports of lockdown,as now slowly and steadily economy has been started from today and globals futures are also recovering. 7)Globally,Trump has said to close all the ties with WHO but did not give any comments on china.so us markets which was trading lower levels due to this, closed flat,as there was no comments on china. 8)Also today cabinet meeting is expected which is source based news ,after gap up ,market will mostly trade sideways.and then if any decision in cabinet will be impacted on stock market. 9)Nifty spot support and resist...

Top 15 Companies to invest

Top 15 Indian Companies as per market capitalization. 1. Reliance market capitalization is 930011.97 crores. 2. Tata Consultancy Services Ltd 756049.23 crores. 3. HDFC Bank 549354.06 crores. 4. Hindustan Unilever Ltd 475334.84 crores.  5. HDFC 332051.53 crores. 6. Infosys 305029.05 crores. 7. Bharti Airtel 280606.59 crores. 8. Kotak Mahindra Bank 259589.74 crores.  9. ICICI Bank 245955.72 crores. 10. ITC Ltd 223902.99 crores. 11. Nestle India market capitalization is 172643.00 crores. 12. State Bank of India 169924.60 crores. 13. Asian Paints 168823.61 crores. 14. Maruti Suzuki 161923.94 crores. 15. Avenue supermart market capitalization is 154157.42 crores. Long term investors can start investing in these companies on regular monthly basis. Invest in these companies as per your capital. Invest equal amount on all the stocks. Accumulate these stocks on monthly basis. Buy a company on BIG falls, say 10-20%. Whenever a company falls about 10-20% in a month or so then buy that co...

Trading Strategies Series Part 1

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Find trend and momentum combining Parabolic Sar & Stochastic Oscillator Today we will be learning swing trading using the Parabolic SAR as a trend indicator and Stochastic to confirm the momentum. The strategy is designed so one can enter in the direction of the main trend once it gains momentum in that direction. It’s a purely discretionary strategy which is best deployed on the hourly chart for signals. This is a short term strategy which is good for intraday trading as well as a swing trade with a 5-7 days horizon.   How to combine PSAR and Stochastic Oscillator The indicators deployed for this strategy are: 1. The Stochastic oscillator is set to the default parameters of 14 for the fast moving line (%K)(Green) and 3 for the slow moving line (%D)(Red).   For our strategy, along with the regular stochastic levels of overbought (80) and oversold (20), we will monitor the mid-point of the oscillator at 50. 2. The Parabolic SAR indicator for our strategy is ...

Trading Strategies Series Part 2

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                                        Combination of   Bollinger Bands & RSI Today we will take two of the better-known technical indicators, namely Bollinger bands and Relative Strength Index (RSI), and go through the steps involved in developing a trading system. To begin with, let’s first take a closer look at each of the indicators that we have picked for our system. Bollinger Bands John Bollinger, creator of the Bollinger Bands defines Bollinger bands as ''a technical analysis tool, which is a type of trading band or envelope''. Bollinger Bands are volatility bands which are plotted above and below a central measure of price, using a statistical measure called standard deviation. They consist of three bands, which revolve around a simple moving average (SMA), with the default value of 20, of which it has been observed that 85% of the time, the p...

Stock market - All you need to know as investor

PE ratio : - Price to Earnings' ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a LOW P/E are undervalued (it depends on other factors too). But there are many stocks which are over valued but has shown greater level of performance. Return on Assets (ROA) : - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders investments in the company. In other words, the return on equi...