Sharekhan Pattern Finder Alert

Sharekhan Pattern Finder Alert

Sharekhan Pattern Finder Alert

Technical Event® Alerts on August 02, 2018

The following alerts have been triggered. Each alert may produce a list of up to 50 Technical Event® opportunities matching the selected criteria. If you find that the list of matching Technical Event® opportunities is too long, try narrowing your alert criteria.
Alert Name: India, Bearish
Alert Criteria: Stocks (Any Indian Exchange) with a Columbine Capital Quant Rank of at least 6; Price at least 5.00; Volume at least 10,000; Market Capitalization at least 5 billion; Classic Patterns; Short-term Patterns; Bearish; Daily Events.
Close at Event
Target Price Range
Opportunity Type
500093BSECG Power & Industrial Solutions LtdContinuation Wedge (Bearish)
42.00 – 46.00
Intermediate-Term Bearish
500179BSEHCL Infosystems LtdInside Bar (Bearish)
Short-Term Bearish
500186BSEHindustan Oil Exploration Co LtdInside Bar (Bearish)
Short-Term Bearish
500300BSEGrasim Industries LtdEngulfing Line (Bearish)
Short-Term Bearish
500483BSETata Communications LtdInside Bar (Bearish)
Short-Term Bearish
500550BSESiemens LtdInside Bar (Bearish)
Short-Term Bearish
524715BSESun Pharmaceuticals Industries LtdShooting Star
Short-Term Bearish
532388BSEIndian Overseas BankEngulfing Line (Bearish)
Short-Term Bearish
532497BSERadico Khaitan LtdEngulfing Line (Bearish)
Short-Term Bearish
532500BSEMaruti Suzuki India LtdHead and Shoulders Top
8,490.00 – 8,621.00
Intermediate-Term Bearish
532748BSEPrime Focus LtdHanging Man
Short-Term Bearish
533477BSEEnkei Wheels (India) LtdTop Triangle
264.00 – 289.00
Intermediate-Term Bearish
540376BSEAvenue Supermarts LtdEngulfing Line (Bearish)
Short-Term Bearish
ABBNSEABB India LtdKey Reversal Bar (Bearish)
Short-Term Bearish
ASTECNSEAstec Lifesciences LtdHead and Shoulders Top
447.00 – 477.00
Intermediate-Term Bearish
CADILAHCNSECadila Healthcare LtdInside Bar (Bearish)
Short-Term Bearish
DPSCLTDNSEIndia Power Corporation LtdPennant (Bearish)
11.25 – 12.50
Short-Term Bearish
EIDPARRYNSEE I D Parry India LtdInside Bar (Bearish)
Short-Term Bearish
FORTISNSEFortis Healthcare LtdInside Bar (Bearish)
Short-Term Bearish
GABRIELNSEGabriel India LtdInside Bar (Bearish)
Short-Term Bearish
HCL-INSYSNSEHCL Infosystems LtdInside Bar (Bearish)
Short-Term Bearish
HINDOILEXPNSEHindustan Oil Exploration Co LtdInside Bar (Bearish)
Short-Term Bearish
MAHABANKNSEBank of MaharashtraHanging Man
Short-Term Bearish
MARUTINSEMaruti Suzuki India LtdHead and Shoulders Top
8,479.00 – 8,611.00
Intermediate-Term Bearish
NHNSENarayana Hrudayalaya LtdHanging Man
Short-Term Bearish
RUPANSERupa & Co LtdInside Bar (Bearish)
Short-Term Bearish
SYNGENENSESyngene International LtdHanging Man
Short-Term Bearish
TATAMOTORSNSETata Motors LtdFlag (Bearish)
234.00 – 240.00
Short-Term Bearish
THERMAXNSEThermax LtdInside Bar (Bearish)
Short-Term Bearish
TRITURBINENSETriveni Turbine LtdInside Bar (Bearish)
Short-Term Bearish

Alert Name: India, Bullish 

Sharekhan Pattern Finder Alert

Alert Criteria: Stocks (Any Indian Exchange) with a Columbine Capital Quant Rank of at most 5; Price at least 3.00; Volume at least 10,000; Market Capitalization at least 5 billion; Classic Patterns; Short-term Patterns; Bullish; Daily Events.

Close at Event
Target Price Range
Opportunity Type
509488BSEGraphite India LtdBottom Triangle
1,246.00 – 1,294.00
Intermediate-Term Bullish
515043BSESaint-Gobain Sekurit India LtdDouble Bottom
72.25 – 73.75
Intermediate-Term Bullish
523704BSEMastek LtdInside Bar (Bullish)
Short-Term Bullish
531213BSEManappuram Finance LtdDiamond Bottom
117.00 – 119.00
Intermediate-Term Bullish
532508BSEJindal Stainless LtdHammer
Short-Term Bullish
532856BSETime Technoplast LtdDiamond Bottom
182.00 – 191.00
Intermediate-Term Bullish
533296BSEFuture Market Networks LtdEngulfing Line (Bullish)
Short-Term Bullish
539448BSEInterGlobe Aviation LtdEngulfing Line (Bullish)
Short-Term Bullish
540047BSEDilip Buildcon LtdDouble Bottom
1,053.00 – 1,101.00
Intermediate-Term Bullish
570001BSETata Motors LtdInside Bar (Bullish)
Short-Term Bullish
DBLNSEDilip Buildcon LtdDouble Bottom
1,044.00 – 1,091.00
Intermediate-Term Bullish
DHAMPURSUGNSEDhampur Sugar Mills LtdMegaphone Bottom
106.00 – 110.00
Intermediate-Term Bullish
ESABINDIANSEEsab India LtdDouble Bottom
757.00 – 775.00
Intermediate-Term Bullish
HSCLNSEHimadri Speciality Chemical LtdDouble Bottom
177.00 – 184.00
Intermediate-Term Bullish
INDIGONSEInterGlobe Aviation LtdEngulfing Line (Bullish)
Short-Term Bullish
INDNIPPONNSEIndia Nippon Electricals LtdEngulfing Line (Bullish)
Short-Term Bullish
JSLNSEJindal Stainless LtdHammer
Short-Term Bullish
LAXMIMACHNSELakshmi Machine Works LtdHammer
Short-Term Bullish
MANAPPURAMNSEManappuram Finance LtdDiamond Bottom
117.00 – 119.00
Intermediate-Term Bullish
MASTEKNSEMastek LtdInside Bar (Bullish)
Short-Term Bullish
MIRCELECTRNSEMIRC Electronics LtdEngulfing Line (Bullish)
Short-Term Bullish
NHPCNSENHPC LtdEngulfing Line (Bullish)
Short-Term Bullish
RTNINFRANSERattanIndia Infrastructure LtdContinuation Wedge (Bullish)
11.25 – 12.75
Long-Term Bullish
TATAMTRDVRNSETata Motors LtdInside Bar (Bullish)
Short-Term Bullish
THOMASCOOKNSEThomas Cook India LtdOutside Bar (Bullish)
Short-Term Bullish
TIMETECHNONSETime Technoplast LtdDiamond Bottom
182.00 – 191.00
Intermediate-Term Bullish
ZENTECNSEZen Technologies LtdHammer
Short-Term Bullish

(W) denotes a weekly event.
(M) denotes a monthly event.

© 2018 Recognia Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Recognia and/or its content providers; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely; and, (4) does not constitute advice or a recommendation by ShareKhan, Recognia Inc. or its content providers in respect of the investment in financial instruments. Neither ShareKhan nor Recognia Inc. nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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Most Popular Trading Mistakes in Commodity And Equity Markets

Most Popular Trading Mistakes in Commodity And Equity Markets
1. Trading for excitement & thrill Not for profits.
Many traders consider the stock market as casino and trade for thrill and fun only. As soon as one has a losing trade, he wants to quickly make back the lost money. He thinks about the other things he could have done with the money, regret taking the trade and want to recover as quickly as possible. This, in turn, leads to further mistakes. Be patient and wait for the next high probability opportunity. Don’t rush back in.
2. Trading with a high ego.
Many individuals who have remained highly successful in other business ventures have failed miserably in the trading game. Because they have a fairly big ego and thought they couldn’t fail. Their egos become their downfall because they can not except that they would be wrong and refuse to get out of bad trades. Once again, whoever or wherever has anyone come from does not concern the markets. All the charm, powers of persuasion, number of degrees & diplomas of business management on the wall or business savvy will not budge the market when you are wrong.
3. Three 4-letter words that will kill you! HOPE–WISH–FEAR–PRAY
If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! Markets have own system of moving up & down. All the hoping, wishing and praying or being fearful in the world is not going to turn a losing trade into a winning one. When you are wrong just use a simple 4-letter word to correct the situation-GET OUT!
4. Trading with money you can’t afford to lose.
One of the greatest obstacles to successful trading is using money that you really can’t afford to lose. Examples of this would be money that is supposed to be used in any other business, money to be paid for college/school fee, trading with borrowed money etc. Ultimately what happens is that when someone knows in the back of their mind that they are risking the money they can not afford to lose, they trade out of fear and emotion versus logic and no emotion. If you are in this situation It highly recommends that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks.
5. No Trading Plan
If you consider yourself a trader, ask yourself these questions: Do I have a set of rules that tell me what to buy, when to buy and how much to buy, not just for the next trade, but for the next 10 trades? Before I enter a trade, do I know when I will take profits? Do I know when I will get out if I am wrong? These questions form the first part of a trading strategy. There simply cannot be any expectation of success if we can’t answer these questions clearly and concisely.
6. Spending profits before you make them.
Nothing is more exciting than getting into a trade that blasts off and puts you into a highly profitable situation. This can cause major problems, however, because this type of trade puts you in a highly euphoric state and leads to daydreaming about the huge profits still to come. The real problem occurs as you get caught up in the daydream and expectations. This causes you to not be prepared to get out as the market reverses and wipes off all your profits because you have convinced yourself of the eventual outcome and will deny the reality of the situation. The simple remedy for this is to know where and how you will take profits once you enter the trade.
7. Not Cutting Losses or letting Profits run
One of the most common mistakes made by traders is that they let their losses grow too large. Nobody likes to take a loss, but failing to take a small loss early will often result in being forced to take a large loss later. A great trader is not someone who has never had a loss. Great traders have made many losses. But what makes them great is their ability to recover quickly from a string of losses.
Every trader needs to develop a method for getting out of losing trades quickly. Research and learn to apply the best methods for placing protective stoploss orders.
The only way to recover from many (small) losing trades is to make sure the winning trades are much larger. After a series of losing trades, it becomes difficult to hold a winning trade because we fear that it will also turn into a loss. Let your profitable trades run. Give them room to move and give them time to move.
8. Not Sticking to your plans & Changing strategies during market hours
If you find yourself changing your strategy during the day while the markets are still open, be mindful of the fact that you are likely to be subject to emotional reactions of fear and greed. With rare exception, the most prudent thing to do is to plan your trading strategy before the market opens and then strictly stick to it during trading hours.
9. Not knowing how to get out of a losing trade.
It’s amazing that most of the traders don’t have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. It must be kept in mind that market does not care what you think. It does what it does and when you are wrong you are wrong! The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out.
10. Falling in love with a stock (Just Flirt).
Many traders get fascinated by just a stock or two and look for opportunities to trade in those stocks only ignoring the other profitable trading opportunities. It is because they have simply fallen in love with a stock to trade with. Such tendencies can be suicidal as for as trading is concerned. It may cost any one dearly.


Most frankly ask a trading question in the stock market

Most frankly ask a trading question in the stock market and commodity market trading most of the mistake get a lot off a loss in trading
What is Day Trading?
Day Traders usually buy and sell (or sell first and then buy) securities (including Stocks, Bonds, Commodities, currency, options, futures etc) during the same day and, as a general rule, do not hold the securities overnight. They are therefore said to have “Zero Position” at the end of the day. (However, some Brokers have started providing facility to square up the Buy-Trades on next market day). Many Day Traders make dozens of trades every day hoping to capture profits that arise from small intra-day price fluctuations.
What is Swing Trading?
Swing traders usually hold a security from one day to 2 weeks or so. Most of the swing traders concentrate on Breakouts on just a few selected High Volume stocks that they believe will likely make a significant move in price in the near-term.
Many people think that day trading is just gambling. Please comment.
No! That is a misconception. Day trading has large potential rewards, and it also has large potential risks involved. Generally, in any form of gambling, the odds of winning or losing are 50-50, where no strategy or tools may influence your chances of winning except your luck, which may play an important role. But in day trading, with the help of Technical Analysis, Proper Trading Strategy, discipline, Patience, use of stop Loss mechanism the odds can be turned in favor to extent of 80-20 or even higher. Even with 50% trades going wrong and hitting stop loss, a day trader can make a profit and turn out to be a winner. Day Traders must follow successful trading rules and avoid most common mistakes to remain in profit consistently.
In brief, what services are you offering for Day traders/Investors?
1. Highly Active Day-traders can get real-time Intra-day Trading Calls in comfort of their home or office through our ”Message Room” (like MSN/Yahoo Chat-Box). If you are a busy executive or a person on move but do not want to miss any trading opportunity, you can get live trading calls on your mobile via SMS and profit from every short-term fluctuation in the Market. (Additionally to assist you formulate a trading strategy for the day we have Daily Morning Newsletter specially designed for Day and Swing Traders, a trading guide like Bullish or Bearish Patterns, Breakouts, Candlestick Patterns, Overbought/ Oversold stocks, Support/ Resistance Levels for key stocks, Trend change Levels, Bar Reversals, Highly volatile stocks, A/D data, Stock Likely to move (both Bullish & Bearish) with Targets/ Stop Loss Levels and lot more…)
2. Semi-active Day Traders, or that expert themselves want the second opinion or want additional tips, can go for economical ‘5-SMS a day’ plan with a Basic Newsletter giving important support resistance levels of 50 most active scrips including leading “F&O” scrips.
3. High Net worth Investors may avail our Portfolio Advisory Service to track their portfolio and make the best use of Technical Analysis to profit from Trading in scrips in hand. Such investors may send separate mail giving their contact numbers.
4. For those, who wish to have Technical Analysis of a specific Stock, we offer detailed Technical Analysis Report at a nominal Fee, payable in advance.
What is the difference between 2 services plans named “5-SMS a day” and “Intra-Day Live SMS Calls”?
”5-SMS a day” is basically a service in which SMS will be sent at ‘Fixed time’ like first between 9.30-9.45 am with trading recommendations if any followed by at 11.00, 12.30, 2.00 and at 3.15pm or before closing hours if extended. While in “Intra-Day Live SMS Calls” plan you get SMS as soon as there is a Buy/ Sell Signal from Charts. Number of SMS may vary depending upon trading opportunities to the extent of 15-20 calls a day. These will be time-sensitive for active traders.
Please clarify as what is the difference between “Basic Newsletter ” (BNL) and “Detailed Daily Newsletter” (DNL)?
”Basic Newsletter (BNL)’ as the name suggests gives basic trading information to the Day Traders like Important Support/ Resistance Levels/ Trend Change Levels/ 10 Period High/Low/ Bar Reversals/ AD data. This information is very useful for Day traders who trade only on Support/ Resistance Levels. The “Detailed Daily Newsletter (DNL)” Contains all the reports useful for all Day Traders and Investors using 1/5/30/ 60 Minutes & Daily Charts, like Bullish or Bearish Patterns, Breakouts, Candlestick Patterns, Overbought/ Oversold stocks, Support/ Resistance Levels for key stocks, Trend Change Levels, Bar Reversals, Highly volatile stocks, A/D data, Stock Likely to move (both Bullish & Bearish) with Targets/ Stop Loss Levels and lot more……………..
What is “Free Newsletter & Tips” on your website?
As part of the promotion of our services and to help traders and investors from time to time, who cannot afford our regular services, we give useful information through of Newsletters and other articles on Technical Analysis. Most Part of these newsletters is reserved for Paid Subscribers, however, the Disclaimers/ Privacy Statement shall be applied to subscribers of Free Newsletters also.
I am willing to subscribe to the services offered by you but can I have “Free Trial” for a few days to test your skills?
We can realize your apprehensions but you will appreciate that we are in this field since 1990 and proved our performance in all the best and worst periods of Stock Market hence do not require any testing. Moreover, there are many cases in which people keep on asking for Free Trials under different names with different identities and mobile numbers. Therefore as a matter of policy, we do not give FREE TRIALS. You may try our “2-Week” Paid Trial offer.
Can I cancel my Membership/ Subscription any time due to any reason?
Yes! You can cancel your membership/ subscription any time by giving 7 days’ advance notice in writing, however, the running month will be charged full and refund will be sent to you within 15 days after deducting the charges on the basis of ‘Monthly Subscription’ multiplied by the number of months the service was used. For Example, if you intend to cancel the Yearly subscription of a Plan (whose Yearly subscription is 22500/- while the Monthly Subscription is Rs2500/) after using it for 5 months. So you will get (Rs.22500/- minus Rs.2500×5 months= Rs.10000 minus full taxes if applied)
“I want to start day trading, but I don’t know the first thing about it.”
If you not sure about day trading, please don’t just “jump in” take the time to read up and learn the basics of trading. Day trading is NOT easy and not a “get rich quick” strategy. A great way to start into day trading is to paper trade or use a trading simulator (without involving actual funds). These strategies don’t take into account all the possible risks that occur when trading with real funds, but it can give you a sense of what it’s like to trade. Please make sure you have a strong foundation of knowledge before using actual funds
What is ‘BTST’ offered by many Brokers of NSE/ BSE?
Taking advantage of the Settlement Procedures of Stock Markets, which requires settlement of Trade on 3rd Day of execution, many Brokers have started offering their Clients / Day Traders the facility of BTST (short form of ‘Buy today Sell tomorrow’) at nominal extra cost (or NO Extra Cost by few) provided the financial interests of brokers are protected. These trades are to be sold on next day (or before 12.00 noon on 3rd Day). However ‘Short Selling’ under this facility is not possible hence not available.
‘How much capital is needed to begin day trading?
Generally, any day trader should have enough trading capital to enable him or her to buy at least few hundred shares of any given stock on any particular day – preferably without having to use margin or using only part margin. In addition, the new day trader should treat this as 100% risk capital and should not have to unduly worry that the whole amount of this capital may be lost very quickly.
How many On-Line Buy/ Sell Advises do you give in a Day?
On a Normal Trading day with usual fluctuations, you can expect 5 to 10 calls, however, on a good volatile market, these calls can go up to 20 also whereas, on a Non-trading market, these get reduced to 1 to 3 only.
What are your criteria for selection of stocks for Day-Trading?
The very first criteria are ‘Volume’. We select only ‘High Volume Stocks’ only for easy entry and exit (even in Stop-Loss case). Second criteria are ‘Volatility’. It has been seen that Volatile stocks give better Trading opportunities for Intra-Day.
What is the number of stocks, you analyze for Day Trading?
We follow about 200 High Volume Stocks of ‘Nifty’, BSE ‘Sensex’, ‘F&O’ stocks including select high volume stocks. Apart from that we ‘rotate’ 10-15 stocks from time to time, which get into the limelight on some news/ results/ media or on Technical Breakouts.
How do you give Real-Time Buy/ Sell advice to Day Traders?
We give real-time trading advice using ‘Message Room’, ‘Pop-Up Alerts’ and by ‘SMS’ on your Mobile Phones during market hours. Message Rooms has the facility to only receive messages. For Message Room and Pop-Ups, you need to have internet facility during market hours to be On-Line.
Which of ‘Message Room’ or ‘Pop-Up Alerts’ or ‘SMS’ is suitable for me for real-time trading advise?
Message Room is for those Traders who have Internet facility, to be online all the time during trading hours and they trade through internet/or Broker’s terminal instantly. ‘Pop-Up Alerts’ are useful for those busy investors/ traders/ HNI (with internet facility) who want to trade only when there is an opportunity. A small ‘Message Window Pop-up’ on their computer screen notifies them as soon as we send a message. And SMS is for those active traders who are mobile and can get their trades executed over the phone or otherwise but do not have access to internet facility all the times.
How do I decide as for how many shares to buy?
You should try to use the same amount of money on each trade, NOT the same number of shares. You should decide before you begin the service how much you will trade with. Let’s say you decide on Rs50, 000/- per trade. If you are buying XYZ, and it costs Rs50, you should buy 1000 shares. If you are buying ABC and it costs Rs25, you should buy 2000 shares.
Is every stock suitable for day trading?
No. A day trader should never trade low volume stocks. These stocks have poor liquidity and hence a higher price volatility. This may make it hard for you to exit your position quickly at a fair price. Trade only high volume, well-known stocks.
What does it mean to “short” a stock?
To “short” a stock, you simply sell the stock without actually owning it. You will have the obligation to buy back the stock on the same Trading Day in order to “cover” your short sale to make you have ‘zero position’. When you short sell a stock, you are hoping that the stock price will drop so that you can buy it back at a lower price than what you sold it for, thereby making an Intra-Day profit on the transaction.
Is it possible to keep Short Position ‘open’ for more than a day?
No, in Cash Segment all the trades are settled on ‘Delivery’ basis on End-of-Day position thus Blank Short Positions must be covered on the same day to avoid coverage of stocks in ‘Auction or Spot’ otherwise, normally at much higher price than prevailing market prices. However position in stocks traded under “Futures & Option Segment” (known as ‘F&O Segment’) can be carried forward to the extent of 3 Months (under different contracts of 1 Month/ 2 Months/ 3 Months) provided such shares are traded under ‘F&O segment’ (at present there are only a few stocks under this category. Check with your broker about F&O dealings/ Margin Requirement/ Brokerage and settlement procedures. For more details and the latest list of such stocks you may visit
What is the difference between a market order, a limit order, and a stop loss order?
Here are the key differences between each type of order:
1. A market order instructs your Trading Terminal or shares, broker, to buy or sell shares immediately at the current market price. This will usually take place at the “ask” price
2. A limit order instructs your Trading Terminal or shares, broker, to buy or sell shares at the certain price specified by you. When (and if) the price of the stock reaches the price you previously specified, your order will be executed at that price.
3. A stop loss order instructs Trading Terminal or shares, broker, to liquidate your position if the share price drops or rises above a certain amount specified by you. (Imp. Note – Give sufficient spread between Stop Loss limit and Trigger Price to avoid any non-materialization of Stop Loss Order)
Should I Trade without using Stop Loss Orders
Never! Never trade without Stop Loss however you may be sure of your success. In one stroke it may wipe off all your capital (maybe more on Margin Trading) if anything goes wrong. Your ‘Stop Loss’ order should be initiated along with your Buy/Sell order without fail. Even if 50% of your trades are met with Stop Loss, you can still make a profit on winning trades. (Imp. Note – Give sufficient spread between Stop Loss limit and Trigger Price to avoid any non-materialization of Stop Loss Order)
I have tried day trading but with high brokerage charged by my broker, I end up negative despite successful trades. What should be reasonable Brokerage in ‘Day Trading’ to catch small price movements profitably?
Normally brokerage is linked with the Trading Volume/ amount of Margin and the services provided by the Brokers. 5 (Five) Paise per share of any amount, on each side of Buy or Sell, is the kind of brokerage advertised by a few popular On-Line Brokers. Normally High Volume Traders pay brokerage of 0.015% to 0.04% of traded shares while Low Volume Traders may have to pay more brokerage. There is a practice of Fixed Brokerage per month also with some brokers irrespective of Volume or Number of Trades. Also, it may be kept in mind that brokerages are more competitive in big cities than smaller cities/towns due to competition and other infrastructure costs involved.
I am a Businessman running my own business. Though I am an active Investor and Trader, at times I don’t get much time to follow my trades. Is Day-Trading suitable for me?
A. Basically, Day Trading is Suitable for those who are trading online, have direct access to Trading Terminals or brokers to get their orders executed instantly. Every minute (rather second) matter in Day Trading. If one cannot track his trades, must not involve in day trading, which at times require prompt decisions.
What rules do you think are the most important for day traders?
There are many important rules that day traders should adhere to but the most important of these are (You may also check the website for most common mistakes committed by day traders):
1. Always do your own due diligence (Research) before entering any Trade
2. Always Trade with the money you can afford to lose
3. Divide your Capital among 10 equal Risk Parts
4. Never Over Trade
5. Always use ‘Stop-Loss’
6. Never Average your Losses
7. Sell Short as often as you go Long
8. Don’t Change your Strategy after initiating a Trade
9. When in doubt, simply get out.
10. Buy on Bad News & Sell on Good News
11. Don’t follow the crowd, they are usually wrong
12.Ban wishful thinking in the Market
13. Hope, Wish, Fear, Pray are all 4-letter words, an obstacle in successful trading
14. Many small profits are equal to Big Gains.
Q. Do you give ‘Technical Analysis’ of any stock on Subscriber’s request during Market Hours?
A. No! Strictly Not! To remain focused on our research and analysis, We do not appreciate any phone calls or entertain any query during market hours. Our suggested calls are clear with Volume/ entry level/ Target/ Stop Loss Level that nobody should have clarification or confusion or misinterpretation of any kind.
However if such stock is in the list of about 100-125 High Volume stocks, which we follow on daily basis, such requests can be considered but after Market Hours or on Weekends.
Anyone seeking our Technical Report on any stock may contact us through ‘Technical Query’ section after paying a nominal Fee.
Do you or your associates Trade in any of your recommended Stocks?
No! As a matter of policy, we maintain high degree integrity and to give unbiased advisory, we (employees, associates, partners, analysts, promoters of Team.trade4profit) do not trade ourselves in the Stock Market. It has been noticed that many analysts, who are traders themselves, though wrong technically, try to justify their recommendations and try to create hype about any stock to create an Exit route for themselves.
Do you get any compensation from any company you recommend in your Chat-Room Service or in Newsletter?
No. We have never received and never will receive, any compensation of any sort from any company we cover in the newsletter or our Chat-Room Service. All stocks we cover in our service are selected because we feel they stand a chance at making a profit for our Subscribers/ Members and for no other reason.
What time are the Daily Newsletters sent to Members?
All members should receive the newsletter(s) before the markets open. Normally it is sent any time between 11.00 pm to 7.30 am, however, owing to reasons beyond our control it can be delayed further a few times a year.
Will your Service be available on all the trading days throughout the year?
No! You should be prepared for ‘No Service’ for about 10 Trading Days in a year due to various reasons beyond our control (like failure of Website Server, Failure of Service at Data Provider’s end, Failure of Internet connectivity, Power Failures, Technical Faults at our Computers, Viruses, Social Compulsions etc). We shall keep you informed in case of such Force Majure situations and try our best for alternative arrangements if possible.
What are the ‘Futures ’?
It is an Agreement between the Buyer and the Seller for the Purchase or Sells of a Particular Asset (like Equity Stock/ Index etc) at a Specified Price and on a specified future date (1 Month/ 2 Months/ 3 Months). It conveys an OBLIGATION on both Buyer and Seller to Fulfill the Terms of the Agreement. Futures are Settled on Last Thursday of the Specified Month and both buyer and seller have to pay minimum Initial Margin as per the requirement of the stock exchange and account between buyer and seller is settled Everyday till the expiry of the Futures contract.
What are the ‘Options’?
An option is a contract, which gives the Buyer of Option (holder) the right, but not the obligation, to Buy or Sell specified quantity of the underlying assets, at a Specific (Strike) Price on or before a Specified Time (expiration date) i.e. 1 Month/ 2 Months/ 3 Months etc. The underlying may be physical commodities like wheat/ rice/ cotton/ gold/ oil or financial instruments like equity stocks/ stock index/ bonds etc. There are 2 types of Options i.e. Call Options and Put Options.
Can anyone Day-Trade in Futures & Options?
Yes! Anyone can do that and square-up his position at the end of the day, but as the name suggest these instruments are meant for Position traders who anticipate a substantial price movement in stocks coming under ‘F&O Segment’ (limited numbers as on date). Trading in ‘Futures & Options’ is more suitable for Swing & Position Traders who can maintain their Long/ Short positions by paying Margin Money as per requirement of the Stock Exchange.
“I forgot my password, now what?”
A. There is a facility below “Member Login” area on the Home page to get ‘Lost Password’ automatically emailed to you but in case of any difficulty, all you need to do is email us and tell us who you are. We’ll get back to you shortly with your password. To avoid this situation, be sure to write your username and password down and keep in a safe place.

A Simple introduction to Future & Option

A Simple introduction to Future & Option

What are Derivatives A Simple introduction to Future & Option
Derivatives are financial instruments which derive their value from the underlying assets or securities. For example, if a Buyer enters into a contract with a Seller to buy a specified number of shares (or Index/ Commodity) of a particular company at a specified price after a specified period, the buyer is said to have entered into a Futures contract.
It is interesting to note that Buyer has bought the contract and not the stock of shares(or Index/ Commodity) under reference. This type of Future contract is called Derivative. There are many another type of Derivatives commonly used all over the world like Options, Convertibles and Warrants etc.
What are Futures
It is an Agreement between the Buyer and the Seller for the Purchase or Sells of a Particular Asset ( like Equity Stock/ Index etc) at a Specified Price and on a specified future date (1 Month/ 2 Months/ 3 Months). It conveys an OBLIGATION on both Buyer and Seller to Fulfill the Terms of the Agreement. Futures are Settled on Last Thursday of the Specified Month and both buyer and seller have to pay minimum Initial Margin as per the requirement of the stock exchange and account between buyer and seller is settled Everyday till the expiry of the Futures contract.
Nifty Future contract have a multiplier of 200 whereas, in case of BSE Sensex, the multiplier is 50 that means Nifty Futures contract gives rise to an obligation to deliver at settlement cash payment equal to 200 times ( 50 times in case of BSE Sensex Futures) the difference between the Nifty Index value at the close of the last trading day of the contract and the price at which the Futures Contract was negotiated.
Suppose ‘A’ enters (Buys) a Nifty futures contract at 1225 for July (expiring on last Thursday of July) with ‘B’. Both ‘A’ & ‘B’ will deposit the required margin with the Stock exchange. On last Thursday of July, Nifty closes at 1267. Now ‘A’ will get Rs. 8400/- {( 1267-1225) x 200 = 8400} from ‘B’. In case Nifty closes at 1157, ‘B’ will get Rs. 13600/- {(1225-1157) x 200 = 13600 } from ‘A’. ( BSE Sensex contract will carry a multiplier of 50 instead of 200 as in case of Nifty.)
But their account will be credited or debited from their Margin Account and their position will be ‘marked to market’ at the end of the session each day. In case the Margin account falls below the maintenance level, cash is sought from the customer to replenish the margin account back to the original level. Either of the customers having surplus margin beyond the original margin can withdraw the funds.
What are the Options
An option is a contract, which gives the Buyer of Option (holder) the right, but not the obligation, to Buy or Sell specified quantity of the underlying assets, at a Specific (Strike) Price on or before a Specified Time (expiration date) i.e 1 Month/ 2 Months/ 3 Months etc. The underlying may be physical commodities like wheat/ rice/ cotton/ gold/ oil or financial instruments like equity stocks/ stock index/ bonds etc.
There are 2 types of Options i.e. Call Options and Put Options.
A Call Option gives the holder (buyer/ one who is long call), the right (No obligation) to buy a specified quantity of the underlying asset at the strike price on or before the expiration date. The seller (one who is short call) however, has the obligation to sell the underlying asset if the buyer of the call option decides to exercise his option to buy.
Option buyer or option holder – Buys the right (No obligation) to buy the underlying asset at the specified price
Option seller or option writer – Has the obligation to sell the underlying asset (to the option holder) at the specified price
A Put Option gives the holder (buyer/ one who is long Put), the right (No obligation) to sell a specified quantity of the underlying asset at the strike price on or before a expiry date. The seller of the put option (one who is short Put) however, has the obligation to buy the underlying asset at the strike price if the buyer decides to exercise his option to sell.
Option buyer or option holder – Buys (No obligation) the right to sell the underlying asset at the specified price
Option seller or option writer – Has the obligation to buy the underlying asset (from the option holder) at the specified price.

When to Buy a Call Option.

If you are Bullish on a particular Scrip/Index. For example, you are Bullish on Tata global (CMP- Rs.350/-) and expecting it to touch 450 in a month’s time (or any particular period say 2/3 months). So you will Buy Reliance Call Option for 1 month (or any particular period) by paying a premium of Rs.10/share (Say). During the course of a month, you will get Right to exercise your Call Option to Buy Reliance at 350 from the seller of Call Option. Suppose it does not move up, you are free NOT to exercise your option to Buy and your loss is limited to the Premium you have paid.
When to Buy a Put Option.
If you are Bearish on a particular Scrip/Index. For example, you are Bearish on ACC (CMP -Rs.150/-) and expecting it to touch 100/- in a month’s time. So you will Buy ACC Put Option for 1 month by paying a premium of Rs.5/share (Say). During the course of a month (you are Free to Buy ACC from the market any time at a lower price) you will get Right to exercise your Put Option to Sell ACC at 150/- to the seller of Put Option. Suppose it does not decline, you are free NOT to exercise your option to Sell and your loss is limited to the Premium you have paid.
When to Sell a Call Option.
If you are Bearish on a particular Scrip/Index. For example, you are Bearish on Infosys (CMP- Rs.3800/-) and expect that it will not move up significantly(or rather decline) in a month’s time. So you will Sell Infosys Call Option at a strike rate of Rs.3900/- (say) for 1 month and Receive the Premium. (Say Rs.100/share). During the course of month Buyer of Call Option will have Right (Not the Obligation) to take Infosys at 3900/- from you and you are obliged to honor your commitment. Remember that you are Holding risk of unlimited loss if Price of Infosys moves up significantly just at the cost of Premium you have received.(you should sell Call Option Only if you are sure that Price of Share will Fall/or not move up or you are holding shares with you to part with, if required)
When to Sell a Put Option.
If you are Bullish on a particular Scrip/Index. For example, you are Bullish on Satyam (CMP – Rs.200/-) and expect that it will not Decline significantly (or rather move up) in a month’s time. So you will Sell Satyam Put Option at a strike rate Rs.215/- (say) for 1 month and Receive the Premium. (Say Rs.12/share). During the course of month Buyer of Put Option will have Right (Not the Obligation) to Sell Satyam at 215/- to you and you are obliged to honor your commitment. Remember that you are Holding risk of unlimited loss if Price of Satyam goes down at the cost of Premium you have received. (you should Sell Put Option Only if you are sure that Price of Share will Move up or you will take Delivery of shares if required)
How are Options different from Futures
The significant differences in Futures and Options are as under:
1. Futures are agreements/contracts to buy or sell a specified quantity of the underlying assets at a price agreed upon by the buyer & seller, on or before a specified time.
Both the buyer and seller are obligated to buy/sell the underlying asset.
2. In case of Options, the buyer enjoys the right & not the obligation, to buy or sell the underlying asset.
3. Futures Contracts have asymmetric risk profile for both the buyer as well as the seller, whereas options have asymmetric risk profile. In case of Options, for a buyer (or holder of the option), the downside is limited to the premium (option price) he has paid while the profits may be unlimited. For a seller or writer of an Options, however, the downside is unlimited while profits are limited to the premium he has received from the buyer.
4. The Futures contracts prices are affected mainly by the prices of the underlying asset. The prices of Options are, however, affected by prices of the underlying asset, time remaining for the expiry of the contract & volatility of the underlying asset.
5. It costs nothing to enter into a Futures contract whereas there is a cost of entering into an Options contract, termed as Premium.
What is Assignment
When the holder of an option exercises his right to buy/ sell, a randomly selected option seller is assigned the obligation to honor the underlying contract, and this process is termed as Assignment.
What are European & American Style of options
An American style option is the one which can be exercised by the buyer on or before the expiration date, i.e. anytime between the day of purchase of the option and the day of its expiry. The European kind of option is the one which can be exercised by the buyer on the expiration day only & not anytime before that.

What is an Option Calculator

An option calculator is a tool to calculate the price of an Option on the basis of various influencing factors like the price of the underlying and its volatility, time to expiry, risk-free interest rate etc. It also helps the user to understand how a change in any one of the factors or more, will affect the option price.

Who are the likely players in the Options Market

Financial institutions, Mutual Funds, Domestic & Foreign Institutional Investors, Brokers, Retail Participants are the likely players in the Options Market.
What are Stock Index Options
The Stock Index Options are options where the underlying asset is a Stock Index for e.g. Options on S&P 500 Index/ Options on BSE Sensex etc. Index Options were first introduced by Chicago Board of Options Exchange (CBOE) in 1983 on its Index ‘S&P 100’. As opposed to options on Individual stocks, index options give an investor the right to buy or sell the value of an index which represents a group of stocks.
What are the uses of Index Options
Index options enable investors to gain exposure to a broad market, with one trading decision and frequently with one transaction. To obtain the same level of diversification using individual stocks or individual equity options, numerous decisions and trades would be necessary. Since broad exposure can be gained with one trade, transaction cost is also reduced by using Index Options. As a percentage of the underlying value, premiums of index options are usually lower than those of equity options as equity options are more volatile than the Index.
Who would use index options
Index Options are effective enough to appeal to a broad spectrum of users, from conservative investors to more aggressive stock market traders. Individual investors might wish to capitalize on market opinions (bullish, bearish or neutral) by acting on their views of the broad market or one of its many sectors. The more sophisticated market professionals might find the variety of index option contracts excellent tools for enhancing market timing decisions and adjusting asset mixes for asset allocation. To a market professional, managing the risk associated with large equity positions may mean using index options to either reduce their risk or to increase market exposure.
What are Options on individual stocks
Options contracts where the underlying asset is an equity stock, are termed as Options on stocks. They are mostly American style options cash settled or settled by physical delivery. Prices are normally quoted in terms of the premium per share, although each contract is invariably for a larger number of shares, e.g. 100.

What are Over the Counter Options

OTC (“over the counter”) options are those dealt with directly between counter-parties and are completely flexible & customized. There is some standardization for ease of trading in the busiest markets, but the precise details of each transaction are freely negotiable between buyer and seller.
What is the underlying in case of Options being introduced by BSE
The underlying for the index options is the BSE 30 Sensex, which is the benchmark index of Indian Capital markets, comprising of 30 scrips.
What will be the new margining system in the case of Options and futures
A portfolio based margining model (SPAN), would be adopted which will take an integrated view of the risk involved in the portfolio of each individual client comprising of his positions in all the derivatives contract traded on the Derivatives Segment. The Initial Margin would be based on worst-case loss of the portfolio of a client to cover 99% VaR over two days horizon. The Initial Margin would be netted at the client level and shall be on a gross basis at the Trading/Clearing member level. The Portfolio will be marked to market on a daily basis.
Underlying – The specific security/asset on which an options contract is based.
Option Premium – Premium is the price paid by the buyer to the seller to acquire the right to buy or sell
Strike Price or Exercise Price – The strike or exercise price of an option is the specified/ pre-determined price of the underlying asset at which the same can be bought or sold if the option buyer exercises his right to buy/ sell on or before the expiration day.
Expiration date -The date on which the option expires is known as Expiration Date. On the Expiration date, either the option is exercised or it expires worthless.
Exercise Date – is the date on which the option is actually exercised. In case of European Options the exercise date is same as the expiration date while in case of American Options, the options contract may be exercised any day between the purchase of the contract & its expiration date (see European/ American Option)
Open Interest – The total number of options contracts outstanding in the market at any given point in time.
Option Holder – is the one who buys an option which can be a call or a put option. He enjoys the right to buy or sell the underlying asset at a specified price on or before the specified time. His upside potential is unlimited while losses are limited to the Premium paid by him to the option writer.
Option seller/ writer – is the one who is obligated to buy (in case of a Put option) or to sell (in case of call option), the underlying asset in case the buyer of the option decides to exercise his option. His profits are limited to the premium received from the buyer while his downside is unlimited.
Options Class – All listed options of a particular type (i.e., call or put) on a particular underlying instrument, e.g., all Sensex Call Options (or) all Sensex Put Options
Option Series – An option series consists of all the options of a given class with the same expiration date and strike price. E.g. BSXCMAY3600 is an options series which includes all Sensex Call options that are traded with Strike Price of 3600 & Expiry in May. (BSX Stands for BSE Sensex (the underlying index), C is for Call Option, May is expiry date & strike Price is 3600)


Golden Rules for Successful Trading in the market!

Golden rules for successful trading in the market get every time profit on a daily basis for trading
1. Divide your Risk Capital into 10 Equal Parts.
As part of the Successful money management, it is always advised to divide your Risk Capital (which you can afford to lose) into 10 equal Parts and at any given time none of your Single Trade should have more than 3 parts of your capital in it even if you are in a winning position. At the same time always keep some spare money for any Buying Opportunity, which may come at any time.
2. Trade ONLY inactive & high Volume Stocks/ Futures.
Many Traders get stuck with stocks for want of liquidity. Always rely upon Stocks which have reasonably high volume over a period of time. High Volume is always advised for easy Entry, Exit and Stop Loss. In low volume stocks, the spread is too high and the chance of Stop Loss limit getting failed is too high as there would be no Buyer or seller at your Stop Loss Level.
3. Come Prepared with a Trading Plan
Successful traders always keep their Trading Plans ready before entering into any transactions. One must prepare a Watch List or Probable candidates for Day’s trading and remain focused on the movement of those stocks only. For example, a Stock ‘X’ is on verge of a Bullish Breakout from any pattern or stock ‘Y’ has declined substantially after an initial sharp up move or stock ‘Z’ is close to an important support level. The successful trader would concentrate on the movement of those stocks only and enter the trade as soon as stock ‘X’ gives the anticipated breakout or stock ‘Y’ starts an up move or stock ‘Z’ breaks the support level to initiate a trade for quick gains.
4. Never Over Trade
This is the most common mistake committed by Traders, particularly after a Streak of winning Trades. This mistake generally not only wipes off all the profits but puts traders in heavy losses. In order to remain in the market while making consistent Profits, under no circumstances, traders should go beyond their Risk Capital.
5. Trade in 2 to 4 Stocks at a time with strict Stop Loss.
In a Bull move, most of the stocks move up and similarly in any Bear Move, most of the stock moves southwards. As a Trader you know this fact but can you Buy 20 Stocks and try to make a profit in all the 20 stocks just because all are moving up or vice versa in a Downtrend? What will happen if the market reverses without any indication on any bad news? Would you be able to monitor all your trades in such situation? The smart and Successful trader would trade in 2 to 4 stocks with strict Stop Loss and keep a strict vigil to avoid any misfortune in case of any eventuality.
6. Sell Short as often as you go Long.
More than 90% of common investors/ Traders are ‘Bulls’ by nature. Because they love to see prices going up only. Stocks are bought by anybody/ corporate/ financial institutions/ Mutual Funds to make a profit on the rise. They have large holdings and mentally they wish and pray for the market to rise only. But the facts are different. History shows that Bull Phases have a shorter duration that Bears phases. So every stock that moves up will retrace back to 38%-50%-66%. Since 90% investors are Bulls by heart they normally do not book profit at higher levels to re-enter later at lower levels instead they prefer to increase their portfolio at lower levels. Successful Traders know how to capitalize such correction. They are always prepared to go ‘Short’ as often as they trade on ‘Long’ side.
7. Don’t Trade if you are not Clear.
Many Traders, because of their daily habits trade even when there are no signals to buy or short. Normally such situation arrives after a sharp rise or decline when stocks are adjusting their values. While some stocks attempt to move up, few may be taking a breather before next move. Such a situation are often confusing. There is no harm in taking rest for a day or two or short period if the trend is choppy, unclear or doubtful, instead of putting your money at higher risk.
8. Don’t expect Profit on Every Trade.
If you consider you are a smart trader who can make a profit on every trade, you are 100% wrong. Always be flexible and accept the fact as soon as you realize that you are on the wrong side of the trade. Simply get out of the trade without changing your strategy during the market; it may cause you double losses.
9. Withdraw portion of your profits.
The business of Trading is excellent as long as you are making profits. Unlike other business, your losses can be unlimited and rapid if the market does not move as per your expectations. While in other businesses you may have other remedial measures available but in trading, it is you only who has to control it. Traders have large egos particularly after a series of successful trades and their tendency to enlarge commitments in overconfidence may cause a major financial setback. Therefore it is must that trader must take a portion of the profit and put it in a separate account. This is an absolute must for long-term stability in the market.
10. ‘Tips’/‘Rumors’ can ruin you sooner or later- Don’t follow them.
Tips and Rumors are part of the game in the Stock market. In most cases, these are spread by vested interests through brokers, media, analysts, or other rumor mongers in the interest of any particular company well before their IPO’s, or to reduce/enlarge holdings or whatever reason. But instead of relying on Charts which are the translated copy of Price Action of any script based on demand supply. While you may be lucky if you have had made profits on such ‘Tips’ but there are 100% chances that you are likely to be trapped in sooner or later if trading on ‘Tips’ or ‘Rumors’ is part of your strategy. Believe in Charts, act on Charts. There is no second best option.

Technical Analysis

Technical Analysis

Technical Analysis most important in trading for intraday and long-term hold we can identify to find what is next movement and get profitable trading in stock and commodity 

In the science of Technical Analysis, Volume plays a role which is as important as any other basic indicator. An increase in the volume in conjunction with Stock price moves adds strength and momentum in the direction of the move. It reflects the market’s confidence that the uptrend will continue in force or its pessimism that the downtrend will.
For the market, declining volumes as the market rises are supposed to warn the end of a BULL MARKET.
Likewise, a sharp increase in volumes resulting in Selling Climax signals the end of a BEAR MARKET. 

An increase in abnormal volume can alert investors to coming price movements, Up or Down before it becomes obvious to the overall market. Therefore, the market axiom “Volumes Precedes Price.”
Historically, the majority of BULL MARKETS have originated with at least two days within the two-month period where upside volume is at least nine times greater than the downside volume. Investors who track volume and spot the two-day Exceptional Upside Indicator can out-maneuver other investors and earn excess returns by positioning themselves for the coming Bull Market.
Basic Volume theory includes the following maxims:
* Increasing Volume with an advance is Bullish
* Decreasing Volume with a decline is Bullish
* Increasing Volume with a decline is Bearish
* Decreasing Volume with an advance is Bearish
* A Market Top is imminent when heavy volumes occur with little or No Gain in the averages.
* Heavy Volume confirms the direction of price breakouts from a Support or Resistance Zones.
* An increase on heavy volumes after a previous substantial rally signals a “Blow Off” with an impending top and
Reversal approaching.
* Heavy Volumes accompanied by an accelerating drop in prices confirms a “Selling Climax” and impending price
reversal after the panic selling subsides.
* Low volume periods after upward price reversals reflect a Consolidation Phase before the resumption of the Upward
The Daily Volume Indicator measures extremes in the Supply/ Demand relationship. If a Stock closes at the midpoint of its trading range for the day, the indicator reflects no change. Closing Price above or below the trading range midpoint show an increase or decrease in the Daily Volume Indicator, respectively.
In constructing the Daily Volume Indicators, Technical Analysts take into account the day’s volume, closing price, Distance between closing Price and the midpoint, and the Trading Range.
These are just the basic characteristics of the Volumes, these must be read in conjunction with other commonly used indicators before drawing up any conclusion.

General Market Advice For Trading

Trading at the breaking of Chart Patterns 

Trading at the breaking of Chart Pattern<>

Patterns play a very important role in Technical Analysis of stocks along with key support and resistance Levels. Patterns are of 2 types i.e. Bullish and Bearish. Further classification of patterns can be done in 2 parts i.e. Reversal Patterns or Continuation Patterns

Bullish Patterns
Bearish Patterns

Reversal Patterns

Reversal Patterns
Head & Shoulder (Inverted)Head & Shoulder
Rounding Bottoms (Saucer)Rounding Tops
Descending TriangleAscending Triangle
Double/ Triple BottomsDouble/ Triple Tops
Falling Wedge/ ChannelRising Wedge/ Channel
V- FormationsV- Formations
Continuation PatternsContinuation Patterns
Flags & PennantsFlags & Pennants
Head & Shoulder (Continuation)Head & Shoulder (Continuation)

Many Traders are taking position for Intra-Day / Short Term or Medium Term depending upon the periodicity of charts if it is 5 Min/ 30 Min/ 60 Min/ Daily/ Weekly or Monthly Charts on confirmation of Breakout from any important pattern or Support or Resistance but often traders/ investors are faced with a dilemma of taking a position in

1. anticipation of a breakout,
2. taking a position on breakout itself, or
3. Waiting for the pullback or reaction after the break out occurs.
Although the arguments can be in favor of each approach or all combined, If a trader buys in anticipation of an upside break out, the profits are better if break out takes place. But at the same time, the chances of losing increase if the break out fails to materialize.
If the trader waits for the actual breaks out, the chances of success increase but at the cost of entry at a higher price. Waiting for a pullback after the break out may be a sensible approach provided the pullback occurs. Unfortunately, in many bull markets, traders don’t get a second chance. The risk involved in waiting for the pullback is an increased chance of missing the move.

The best strategy under the circumstances of a trader is to trade multiple positions. The traders should take a small position in anticipation of a break out buy some more on the breakout and add a little more on the pullback move after the breakout.

Trading at the breaking of trend lines
This is one of the most useful early entries of exit signals. If the trader is looking to enter a new position on a technical sign of a trend change or a reason to exist an old position, the break of the tight trend line is often an excellent action signal. Other technical factors must, of course, also be considered to arrive at a conclusive approach. Trend lines can also be used as entry and exit points when they are made to act as support and resistance levels.
Trading at support and resistance level

Support and resistance are the most effective chart rules to use for entry and exit points. The breaking of resistance can be a good signal. Enter into a buy position and the stop loss can be placed under the nearest support point. Rallies to resistance in a downtrend or declines to support in an uptrend can be used to initiate new positions or add to old profitable ones. For purpose of placing stop losses support and resistance levels are most valuable.


General Market Advice For Trading

1. Never chase a stock.
2. Buy when markets are in the grip of panic.
3. Only buy fundamentally strong stocks, which are undervalued.
4. Buy stocks grown in top line and bottom line over the past years.
5. Invest in companies with proven management.
6. Avoid loss-making companies.
7. PE Ratio and Growth in earnings per share are the keys.
8. Look for the dividend paying record.
9. Invest in stocks for sure returns.
10. Stocks have been the high yielding asset class over the past.
11. Stocks are an asset class.
12. The basic property of any asset class is to grow.
13. Buy when everyone is selling and sell when everyone buys.
14. Invest a fixed amount each month.
Last But not least Trust our tips and then invest to earn huge profit

Do and don'ts for Stock Market Investments

Do and don'ts for Stock Market Investments

Do and don'ts for Stock Market Investments

What must I do now?
This is the question probably every equity investor would have asked himself a number of times in the past few months.
With the stock market moving to dizzying heights before succumbing to gravity, it’s easy to get nervous or over-excited.
Here’s what we suggest you do when the bulls and bears kick up a lot of dust.
What you must NOT do
1. Don’t panic
The market is volatile. Accept that. It will keep fluctuating. Don’t panic.
If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed.
Ditto with your mutual fund. Does the Net Asset Value deep dipping and then rising slightly? Hold on. Don’t sell unnecessarily.
2. Don’t make huge investments
When the market dips, go ahead and buy some stocks. But don’t invest huge amounts. Pick up the shares in stages.
Keep some money aside and zero in on a few companies you believe in.
When the market dips –buy them. When the market dips again, , you can pick up some more. Keep buying the shares periodically.
Everyone knows that they should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can time the market.
It is impossible for an individual to state when the share price has reached rock bottom. Instead, buy shares over a period of time; this way, you will average your costs.
Pick a few stocks and invest in them gradually.
Ditto with a mutual fund. Invest small amounts gradually via a Systematic Investment Plan. Here, you invest a fixed amount every month into your fund and you get units allocated to you.
3. Don’t chase performance
A stock does not become a good buy simply because its price has been rising phenomenally. Once investors start selling, the price will drop drastically.
Ditto with a mutual fund. Every fund will show a great return in the current bull run. That does not make it a good fund. Track the performance of the fund over a bull and bear market; only then make your choice.
4. Don’t ignore expenses
When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits especially if you are selling for small gains (where the price of the stock has risen by a few rupees).
With mutual funds, if you have already paid an entry load, then you most probably won’t have to pay an exit load. Entry loads and exit loads are fees levied on the Net Asset Value (price of a unit of a fund). Entry load is levied when you buy units and an exit load when you sell them.
If you sell your shares of equity funds within a year of buying, you end up paying a short-term capital gains tax of 10% on your profit. If you sell after a year, you pay no tax (long-term capital gains tax is nil).
What you MUST do
1. Get rid of the junk
Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilize the money elsewhere if you no longer believe in them.
Similarly with a dud fund; sell the units and deploy the money in a more fruitful investment.
2. Diversify
Don’t just buy stocks in one sector. Make sure you are invested in stocks of various sectors.
Also, when you look at your total equity investments, don’t just look at stocks. Look at equity funds as well.
To balance your equity investments, put a portion of your investments in fixed income instruments like the Public Provident Fund, post office deposits, bonds and National Savings Certificates.
If you have none of these or very little investment in these, consider a balanced fund or a debt fund.
3. Believe in your investment
Don’t invest in shares based on a tip, no matter who gives it to you.
Tread cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it.
Are you happy with the way a particular fund manager manages his fund and the objective of the fund? If yes, consider investing in it.
4. Stick to your strategy
If you decided you only want 60% of all your investments in equity, don’t over-exceed that limit because the stock market has been delivering great returns.
Stick to your allocation.


How to read and act on Daily Newsletters

How to read and act on Daily Newsletters
In the following paragraphs, we shall explain you as to how to read the figures to arrive at any Trading/ Investment Strategies.
First of all, be clear that we believe in Charts and figures than long stories with tens of ‘ifs’ and ‘buts’. With little knowledge of Technical Analysis, one can see the Basic Trend, Patterns, Support/ Resistance Levels, Breakouts, Gaps, Overbought/ Oversold Zones, Short/Long Term Moving averages crossovers and much more. Just a glance at any chart can give you a hint of possible market action in near to long term.
1. Support/ Resistance Levels (Daily/ Weekly/ Monthly Trading Strategy)
As the name suggests, there are many traders who trade only on support & Resistance levels. The table contains following details i.e. Name of Scrip/ Last Close/ 5-Period Low/ Support 2/ Support 1/ Trend Level/ Resistance 1/ Resistance 2/ 5-Period High.
In Conjunction with other indicators & tools, this table can use for:
1. Fresh Longs or Shorts on Trend Change Levels.
2. Booking Part/ Full Profit in Long/ Short Positions
3. For Quick gains of 1 to 5 Rupees on breaking of previous High or Low
Every Newsletter (i.e. Daily/ Weekly and Monthly) has a similar table to decide Daily/ Weekly/ Monthly Trading Strategy. The Support / Resistance levels are different in every table based on the Open / High/ Low / Closing of price in Daily/ Weekly/ Monthly Charts.
The table is in order of Bullish to Bearish on the basis of last closing Price vis a vis Trend Level. If the Scrip price is trading Higher than Trend Level, it is a positive sign for bulls and vice a versa. Traders can hunt for the scrips, which are on verge of crossovers to bullish to bearish or otherwise. Above Trend Level, scrip is likely to face resistance at ‘Res-1’ then ‘Res-2’. High of last 5-Periods also acts as resistance. Traders can make an entry for few Quick Bucks if scrip breaks 5-Period high to make a new High. The same rule shall apply on Downside below Trend Level.
2. Overbought/ Oversold Scrips in (5-ROC/ 12-ROC/ 9-RSI/ 14-RSI/ William%14R)
Similar to Support/ Resistance Table, this can also be used by Daily/ Weekly and Monthly Traders and Investors to decide their strategy. The figures 5/ 12/ 9/ 14/ 14, are the Period of Charts like in Hourly Charts it is 5-Hour ROC/ 12-Hour ROC/ 9-Hour RSI/ 14-Hours RSI etc. In Table of Daily/ Weekly/ Monthly, this Period will change to Days/ Week & Months respectively.
In Conjunction with other indicators & tools, this table can use for:
a. Profit Booking (in Full or Part)
b. Fresh Entry in full or part
c. Extending Trailing Stop Loss
d. Sign of Caution in Long or Short Positions
The table contains 8-10 most Highly Overbought/ Oversold scrips in each category. Suppose a Scrip is overbought in more than 2 tables, it warrants caution in Long Positions through any script can continue to remain in Overbought Zones for many periods part profit booking is always advisable. Similarly, Highly Oversold scrips in more than 2 tables suggest that trend is likely to change from bearish to bullish. If other indicators support, gradual buying can be started but with Stop Loss.
3. Bar Reversal (Up/Down), Candlestick Engulfing Patterns (Bullish / Bearish), Doji Pattern, Volatile 
a. Bar Reversal (Up/ Down): It is a very good indicator for Day & Swing Trading particularly after a significant rise or fall over a number of periods. Bar Reversal in Weekly/ Monthly Charts is very useful as ‘Advance Indicators’ to catch short-term moves on either side. For Example in the case of Upward Weekly Bar-Reversal, Investor can buy gradually on declines or Panic selling for an impending short-term up move. Same equation applies in case of Downward Bar reversal. Weekly/ Monthly Bar Reversals after a reasonably long Bull/ Bear phase indicate Trend Reversal if supported by other indicators. (IMP: This indicator should be used in conjunction with other indicators with use of Stop Loss mechanism)
b. Japanese Candlestick Engulfing Bullish/ Bearish Pattern: It is a Japanese Candlestick Reversal which is refined and more powerful form of Bar Reversal. When a ‘White’ candle engulfs a preceding ‘Black Candle’ it is called Bullish Engulfing and when a long Black Candle engulfs preceding ‘White’ candle it is termed as the Bearish Engulfing pattern. It can be used for Quick Trading if a stock is moving up/down for many periods and other indicators like Overbought/ Oversold Zones are in favor of decline/ recovery. Weekly/ Monthly Engulfing Patterns after a reasonably long Bull/ Bear phase indicate Trend Reversal if supported by other indicators
c. Doji Star (Japanese Candlestick Pattern): It is again a Japanese Candlestick Pattern in which Stock Price closes near its opening level after a reasonable High/ Low. A Doji Pattern gaps above or below a While or Black Candlestick. It is a Reversal signal, confirmation of which comes during next Trading Day. ‘Smart Traders can keep a watch on such stocks and trade Long/ Short on confirmation with the help of other indicators like Overbought/ Oversold, market sentiments etc.
d. Volatile Stocks: As commonly known volatile stocks provide the better opportunity for Day and Swing Trading. This column gives the list of stock in which the gap between High & Low of the last 3 periods in comparison to close is too high. This is just for guidance purpose. Traders must see support/ resistance and other tools before entering any trade on the basis of this table.
4. Gaps (Upward/ Downward > 0.50%): 
Gaps are spaces left on the Bar Chart where no trading has taken place. An Upward Gap is formed when the Lowest price of the day is higher than the highest of the previous day.
Downward gap is formed when the Highest Price of the day is lower than the lowest price of the previous day. There are 3 type of Gaps i.e. Breakout Gap (When price moves out of any important Pattern), Continuation Gap and Exhaustion Gap (indicating termination of an upward or downward move). We have given a filter of 0.5% of the stock price to avoid any whipsaw movements.
5. Bullish & Bearish Stocks (For Intra-Day):
Based on Technical Analysis of Extreme Short Term Charts i.e. 5 Min/ 30 Min & 60 Min, we short list a few stocks which are on verge of Bullish/ Bearish breakouts, at Crucial Support /Resistance or in highly Overbought/Oversold zones or stocks which have broken any chart pattern The Stocks can be put under ‘Watch List’ during Market hours for possible move on either side for Quick Profits by Day traders.
6. What the Charts Foretell Now : (In Detailed Newsletter, Part – B, Only)
Based on Technical Analysis of Extreme Short Term/ Medium Term Charts i.e. 60 Min/ Daily & Weekly, in short, we give our views about certain Stocks (15 to 25). Targets of such observations are generally achieved in next few days until and unless stated otherwise.
7. Bulls & Bears (Technical Charts): (In Detailed Newsletter, Part – B, Only)
One Charts can say much more than words. We give minmum 2 Charts on week days and 4 charts in weekly Newsletters, about select stocks with important chart patterns with other indicators like Volume, RSI, ROC, Momentum, MACD, OBV, Moving Averages etc, with tentative targets for Short or Medium or Long Term. Very Useful for those having little knowledge about Technical Analysis or for experts who need confirmation of their opinion.
8. General Buy/ Sell Recommendations: (In Detailed Newsletter, Part – B, Only)
Based on Daily/ Weekly Charts, we prepare a list of Bullish and Bearish stocks with their tentative targets for Extreme Short Term, Short Term or Medium Term. Investors and Traders can create their positions or Book profit gradually for the recommended time frame. For Example, If any stock is giving bullish indications for medium term, investors can gradually pick up this stock on every decline with major support as Stop Loss Level. Similarly, if any stock is giving bearish indications for extreme Short Term, one can book part profit on every rise and wait for the decline to re-enter the stock.
9. If I were a Trader (Similar to Rs10 Lac Portfolio): (In Detailed Newsletter, Part – B, Only)
This is just a Model Portfolio for the guidance of investors who do not want to put their efforts or time to decide their Short Term Portfolio, we suggest the stocks under ‘If I were a Trader’. It is not necessary to follow this Model Portfolio. Investors/ Traders can use their own research and arrive at trading decisions by taking help of our Newsletters.