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…
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…
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…
A dividend is a portion of profits that it pays out to all the shareholders. A company can choose to pay dividends or re-invest the entire profit for more growth. Dividend yield on the other hand is more important for us If we invest 1 lakh in stock and the Dividend yield is 5% — it means…
P/E = share price/EPS (EPS we learned earlier — earnings per share) What it means in layman’s language is how much money you need to invest in a company to get Rs1 as returns if P/E = 20, it means if you invest Rs20 — that company will give you Re1 returns on investment If P/E = 40, it…
Nifty Analysis — Stance Bullish ⬆️ Recap from yesterday: “If Nifty50 has to change its character, the price has to fall below 22295 and then below 22051 wherein the higher low will get violated.” 4mts chart I was stunned by the Nifty50 and BankNifty price moves today. We started the day in line and then the 09.31…
Nifty Analysis — Stance Bullish ⬆️ Recap from yesterday: “Our stance continues to be bullish and the first support level would be 22295. It is a shallow support and not quite relevant for a stance change, but the momentum is what really matters.” 4mts chart For a brief period, Nifty traded below the support level of 22295….
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “In the 63mts chart, see the encircled region — the strength of the green candles stands out prominently. This has given Nifty a total makeover, till yesterday we were neutral with a moderate bearish bias. Today we are still neutral but with a bullish bias — as the resistance of 21913 is…
Nifty Analysis — Stance Neutral ➡️ Recap from yesterday: “On the 63mts chart, Nifty is still neutral with no clear indication of the next direction. BankNifty is bearish and the chances of Nifty going down may be higher due to that. The first target to break should be 21491 below which the bearish momentum will pick up…
