RSS FEED IDEMS: Technical analysis and day trading techniques
- Nifty showing weakness at 4520-4530 range!
Nifty showing weakness between the range of 4520-4530, and once this range is crossed with volumes we should expect atleast Nifty hitting 4600 level, any adverse news at this junction will lead to a big fall.
Reliance,relcapital,sbi,Petronet looking good for long positions.
Wed, 12 Sep 2007 07:37:00 +0000
- Expect market to be rangebound,or a little upside!
Nifty to remain in a rangebound movement for this week, as the market is waiting for 18th Sept meeting of FED, and waiting to give guidance for intereste rate changes. No doubt in it that an intereste rate cut off in US will be a boon to India and expect the banking sector to rally like any thing. But if the interest rate is not cut and no changes are made, then expect the same small movement in the market and no trend as we are experiencing these days.
Escorts is looking good for a long position, for a target of 115-120.
Tue, 11 Sep 2007 03:52:00 +0000
- 900bn USD credit card debt on US!
To some people this thing may sound pretty scary and to some it may sound nothing(if you already in huge debt), but if you an indian and trading in indian stock market then it wont affect your day to day life, but yes it may effect Sensex and other stock markets in the world.
Till now we were facing subprime crisis and also witnessed a small crash on our markets, although it has very little connection with India, but since our indices follow Dow jones and other asian indices so much, that we cannot do much in this case, but we may be going to witness a new type of bad news from US, around 900bn USD debt is piling up on the Banks who have issued credit cards to US citizens, who dont seem to be interested in paying back the money and eventually turning away from their financial responsibilities.
This credit card crisis is not new, this is well known to USA and its increasing every month, as new credit cards are issued every day in US.
IF this debt is not cleared, then a similar crash will be seen, as happened due to subprime crisis, as this credit card mess is much the same in size as compared to the subprime mess made by Americans.
God save indian stock market!
Sat, 08 Sep 2007 15:18:00 +0000
- Nikkei has broken an important support! Dow in negative as well.
Nikkei had an intermediate support at 16175, which it had broken and is around 16158 levels. We expect another 200 points fall in Nikkei which could happen tomorrow and currently DOW is already down around 140 points.
If Dow closes in -ve, we should see a similar effect on our markets as well, that is Sensex, and we might see a correction of around 2% in Sensex as well by tomorrow; this is a possibility from our end, right now its 10:55pm India time, and Dow closes at 1:30am indian time, so if Dow closes in +ve then this effect may not happen, but again as said earlier, Nikkei has broken its important support, so things dont look good right now.
Nifty is showing resistance at 4500-4510 levels.
Wed, 05 Sep 2007 17:22:00 +0000
- Nifty looking weak at highs,expect some surprises!
Nifty is trying to move up but everytime its being pushed down, this shows that selling is coming at highs and a resistance around 4480-4510 is visible, until unless it crosses this resistance range, expect a rangebound to weak market in coming days. Arvind millis looking good, followed by SBI and Reliance for going long.
Tue, 04 Sep 2007 11:21:00 +0000
- 4400 is a resistance for Nifty; Reliance is strong!
Nifty is inching up slowly every 15min, this is all due to reliance, since reliance has a strong effect on Nifty. Nifty has to cross 4400 and remain above it for a few minutes to resume upward journey. Since today is the expiry day we should expect some small range movement as traders switch over to the sept futures.
Thu, 30 Aug 2007 07:20:00 +0000
- I expect Nifty to touch 4500 today itself! Read more.
Dow jones rallied more than 250 points yesterday which will be a positive effect on our indices and we should see Nifty touching 4500 today itself, although 4400 is a strong resistance, but we might see a gap up opening today and touching 4500 will be pretty easy for nifty and sensex should open with a minimum 300 points up gap.
Tatasteel is looking good for buying, one can buy tatasteel is it moves above 666, for a target of 675, for the second target, if it crosses 678, then next target will be 695, a good jump is possible in tatasteel.
Centurytextile has made a 52-week high and i expect it touch touch 830-840 in coming days.Buying can be initiated in Centurytextile if it crosses 800 for a target of Rs825-830.
Wed, 29 Aug 2007 20:21:00 +0000
- Expect a heavy correction today in Nifty!
Dow closed with -275 points last night and nikkei futures were around 15824, which means roughly 400 points fall since afternoon. I expect Sensex to correct today with atleast 400-500 points fall correction and a 100 point fall in Nifty straight away in first 10min-15min of opening trade in Nifty itself.
Nifty below 4190 will touch 4135, and below 4130 i expect it to touch 4100, 4100 is a good support which i dont expect to be broken, but since the pressure in fall can be huge, no wonder!
Goodbye Bulls!
Tue, 28 Aug 2007 20:09:00 +0000
- Market is poised for a good upside,Nifty can touch 4300!
Dow jones made a remarkable recovery last friday 24th Aug 2007. This will bring an automatic effect on our markets and I expect Nifty to touch 4300 in a short time. The stocks to invest or buy for going long are SBI,Reliance, Tatasteel above 590 my target is 602 in intraday itself,its good for short term, infact TATASTEEL is expected to cross 602 mark as well, and if it does it then next target for me will be 618, this is possible on the same day, but it all depends on the volume of the stock.
Another stock which i would like to trade will be OMAXE,which if crosses 334, my target will be 350 in day or two.
DLF has a resistance at 573 above which I expect it touch 584 the same day, provided it moves with good volumes.
Sun, 26 Aug 2007 19:11:00 +0000
- Technical analysis and trading for Indian stock market
Technical analysis is a vast subject and people(traders,investors,amateurs) are slowly realising this science as a gateway to successful intra-day trading and yes, long term investing, using some technical analysis software and trying to figure out what is expected the next day on the basis of stock filtration technique using some in built parameters in the software.
One such software is Metquotes, which can be downloaded from http://www.metquotes.com and is developed by myself in vbasic .net, this software uses my scanning methods and generates reports on the basis of the filtration methods using the End of Day stock quotes which are also downloaded by this software from http://www.nseindia.com
This software does scanning only on EOD(End of day) data, it does'nt provide real time data, now you will ask a question that why is this software based on EOD instead of real time data? the answer is, its not required at all.
Many traders these days are buying real time feeds from vendors on the websites and paying them nearly 3000-5000 monthly only for the real time feeds, which are mostly compatible with METASTOCK PROFESSIONAL, an Equis product, available at http://www.equis.com
What I tell to my clients...is that you don't need real time feeds from these vendors, instead choose a good broker which can provide real time quotes in a trading terminal which can be very economical and you have to pay only one time fee, Rs200 or Rs500, thats it!
The trading terminals have real time quotes and the stock graphs can be seen in those terminals, the prices of stocks change every other second in that terminal.
I have used all trading terminals, the best currently which is available is Angel Anywhere, from angel broking, www.angeltrade.com
Their software is pretty good designed for professional technical analysts. You can see at a time 6-10 graphs easily on the terminal, plot all types of indicators on the graphs and you can have bar and candle graphs. I normally use candlesticks for analysis so by default when I login into Angel Anywhere software, all the settings are loaded, which obviously I saved from last login.
My trading method for intra-day is, by scanning EOD data from METQUOTES, i choose the best stocks on the basis of volume and price breakout, then I do analysis of charts of the chosen stocks in METASTOCK PROFESSIONAL, and calculate the resistance and support levels.
The next day I track the same stocks and take buy/short sell positions in those stocks.
This looks pretty easy but requires lot of hard work, the phrase EASY MONEY, doesn't exist in the technical analysis field.
The main system which reduces my technical analysis time is METQUOTES, since it scans the break out stocks, and filters the laggards.
Metquotes is at http://www.metquotes.com
Data downloaded by metquotes is compatible with Amibroker software, available at http://www.amibroker.com
Thu, 23 Aug 2007 05:58:00 +0000
- Expect Nifty support at 4000.
The previous support of 4000 could be tested today in Nifty spot.Below 4000 things will look ugly. On the upside Nifty has a resistance at 4100, above which it can touch 4150.Most stocks/bluechips corrected with good volumes,weakness will prevail in the market, bounce back is expected and highly anticipitated currently.
Wed, 22 Aug 2007 04:11:00 +0000
- How to trade in Forex from India?
The Foreign Exchange, also referred to as the "Forex" or "Spot FX" market, is the largest financial market in the world, with over $1.2 trillion changing hands every single day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you see how giant the Foreign Exchange really is. In fact it is three times larger than all of the US Equity and Treasury markets combined.
What is traded on the Foreign Exchange? The answer is money. Forex trading is where the currency of one nation is traded for that of another. Therefore,Forex trading is always traded in pairs. The most commonly traded currency pairs are traded against the US Dollar (USD). They are called ‘the Majors'. The major currency pairs are the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY); and the Swiss Franc (USD/CHF).The notable ‘commodity’ currency pairs that trade are the Canadian Dollar (USD/CAD) and the Australian Dollar AUD/USD. Because there is not a central exchange for the Forex market, these pairs and their crosses are traded over the telephone and online through a global network of banks, multinationalcorporations, importers and exporters, brokers and currency traders.Traditionally, currency trading has been a 'professionals only' market available exclusively to banks and large institutions, however, because of the rise of the new E-economy, online Forex trading firms are now able to offer trading accounts to 'retail' traders like you and I. Now almost anyone with a computerand an Internet connection can trade currencies just like the world's largest banks do. There are now over 6 million trading accounts worldwide up from 1.7 million in 1997.
BENEFITS OF FOREX TRADINGThere are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market as a business opportunity:
1.LEVERAGE: In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. Some Forex firms offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies.Similarly, with $500 dollars, one could trade with $100,000 dollars and so on.
2.LIQUIDITY: Because the Forex Market is so large, it is also extremely liquid.This means that with a click of a mouse you can instantaneously buy and sell at will. You are never 'stuck' in a trade. You can even set the online trading platform to automatically close your position at your desired profit level (limit order), and/or close a trade if a trade is going against you (stop order).
3.PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS: On the stock markets, you can only make money if shares are rising, but in economic recession and falling 'bear' markets, there is little chance of making big money.Forex is different. One of the most exciting advantages of FX trading is the ability to generate profits whether a currency pair is 'up' or 'down'. A trader can profit by taking a 'long' position, (buying the currency pair at one price and selling itlater at a higher price), or a 'short' position, (selling the currency pair and buyingit back at a lower price). For example, if you think the US dollar will increase in value vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). If you think the Yen will increase in value against the Dollar then you will sell Dollars and buy yen (go short). As long as the trader picks the right direction, a potential for profit always exists.
4. 24HRS: From Sunday evening to Friday Afternoon EST the Forex market never sleeps. This is very desirable for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.
5. FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most Online Forex firms offer free 'Demo' accounts to practice trading, along with breaking Forex news and charting services. These are very valuable resources for traderswho would like to hone their trading skills with 'virtual' money before opening a live trading account.
6.'MINI' TRADING: One might think that getting started as a currency trader would cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer 'mini' trading accounts with a minimum account deposit of only $200-$500 with no commission trading. This makes Forex much more accessible to the average individual, without large, start-up capital.
Sun, 19 Aug 2007 14:11:00 +0000
- Expect a rebound in Indian markets on monday!
Here comes the good news, Dow jones roughly 150 points up right now and this means if it closes in +ve and that too in good shape, then a minimum 50-100 points gap up opening on monday in Nifty is very much possible and in Sensex a 300 points upside gap opening is possible as well.
We might see a good rebound on monday and those who were strong enough to take long positions today in Nifty will be rewarded on Monday with a positive opening.
4200 is expected to be a resistance, and i Expect Nifty to cross it if Dow closes in the green, and not to mention the Nikkei and Hang Seng which should also open in +ve on monday, as our indices rely on Asian indices as well.
Fri, 17 Aug 2007 19:06:00 +0000
- Nifty below 4100, expect more weakness!
Nifty has just fallen below its good support at 4100 which indicates further weakness in the index. The next support for it is now 4000 and only 4000 can save this market, below this small supports exist at 3950-3980.
This fall is being fuelled by other Asian indices, like Nikkei and Hangseng.
Bulls are advised to go to sleep!
Fri, 17 Aug 2007 06:00:00 +0000
- How did the correction started? What is subprime loan?
Many traders all over the worl might be asking this question to themselves about how this mess started and why all of a sudden such a huge correction occurred in US and world markets, the reason is over confidence and poor understanding of credit markets among US hedge funds, Banks and even credit rating companies like S&P and MOODY's.
A senior executive of a credit rating company in US in 2006 looked at the 6lac plus loans given in that year and saw that around more than 50% loans given not even a single person gave its first installment, this was a big jolt to the rating company and they decided to downgrade their ratings from tiple AAA to double BB which means not suitable for retail investing or long term investing.
This downgradation led to panic among traders and made a selloff this year.
Many other reasons were behind this.In 2006 falling interest rates and rising housing rates led to over confidence among big money lenders and they started giving loans to people with bad credit ratings and even to those who didnt had any documents, showing the over confidence among the banks and private lenders that the subprime borrowers will payback the principle amount within the time duration, which didnt happened,forget about principle amount, most of them didnt even pay their first installment.
This was the starting of a big fall in the worlds strongest economy called USA.
Soon a fall in housing rates happened which led to big panic among home owners and for those especially who have taken loans to invest in new housing areas,these people decided to backoff from paying off their debts and which led to liquidity crunch among banks and private lenders, and eventually led to filing of bankruptcy.
The situation can even go worse as the rumour of US's big mortgage company Countrywide might file for bankruptcy, if confirmed.
God save USA and the World markets.
Thu, 16 Aug 2007 18:51:00 +0000
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