When you pay money to a mutual fund AMC, they have to invest in equity or debt according to the goals set. Let us discuss the small and midcap equity funds in specific as the stress tests were ordered for them. SEBI felt the inflow into small caps and midcaps looked like a froth (a…
Candlesticks are the price behavior for the time allotted. If you select a 4-minute time frame, each candle will carry a time value of 4mts. If the candle closes above the previous close, then it is a green candle. If it closes lower, it will be a red candle. Each candle shows the psychology of…
Bullish means — the prices are expected to go up in the future. Bearish means — the prices will decline. Trading in a range means the prices are flat and no appreciation/depreciation is likely The simplest way to sense the direction of a stock is to use the moving average indicator on the chart. If the slope is positive — then…
It is called the moving average cross-over technique. Steps to get this indicator 1. open the chart of your favorite stock 2. Add 50 EMA indicator 3. Add 200 EMA indicator 4. check for the crossings In the above chart, the purple line is 50 EMA and the blue line is 200 EMA. When 50…
Supports are areas where the stock will take a pause — because more people will be interested in buying. Resistances are areas where the stock will pause, but this time more people are interested in selling. Supports will appear below the current traded price and resistance will appear above. see the horizontal lines drawn When the price was…
Trending markets are like T20, full of thrill and fun. Non-directional markets like Test match cricket, are mostly boring. By now you already know how to find a trending market and a non-directional market Answer: look at the slope of the moving average. if it is parallel to the x-axis it is a non-directional market….
Nifty Analysis — Stance Bearish⬇️ Recap from yesterday: “If you look at the higher time frame, today’s price moves might be between 38.2 to 50% Fibonacci retracement levels and what might have formed could be a lower high.” 4mts chart Nifty was not able to sustain the gains yesterday, within the opening 15 minutes itself it breached…
Commercial Banks like HDFC Bank, ICICI Bank, and SBI may require funds. The easiest way to raise them would be to borrow from the Reserve Bank of India (RBI). The rate of interest at which RBI loans money to commercial banks is called Repo Rate. The current Repo rate is 6.5%. Similarly, the rate of…
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “From the recent top of 48161, BN is falling, but yet to make a lower low or lower high. Unless the 2nd leg starts, we wouldn’t know with clarity what it has in mind. To go bearish, we need to fall below 46176 another 800pts away.” 4mts chart…
Volatility is the probability that a stock swings up and down from its base price. If there are 2 stocks, stockA which swings 5% every day, and then stockB which swings 2% every day — then stockA is more volatile than stockB. Higher swings mean higher uncertainty and hence the options premium will be higher for stockA…
