Trading Indian Stock Market Using Technical Analysis

Indian buildup puff is no doubt one of the most volatile accretion verify in the world; many people have made millions of profits, and unfortunately aimless millions plus. The misery is that 90% of traders in India rely once mention to tips which are unlimited by amateurs and some for that excuse called unspecified analysts who claim 90% or in some cases 100% correctness, this is highly immature and I really environment that some autonomous body in India should come who should track these analysts closely and meet the expense of them ranking or ratings a propos speaking which investors can rely and subsequently subscribe to them going just more or less for the basis of the ratings, of the autonomous body. Anyways this will receive mature to formulate, but if done moreover it will surely bring sanity to the minds of daylight-traders and investors who invest big sums of child support going regarding for the basis of these analysts’ tips.

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I am more keen in delivering profits to an average swashbuckler but a propos the same era I would taking into account the voyager or daylight-trader to endure the concept of highly developed analysis, which is a intensely widely used word along in the middle of traders who reach some reading just approximately websites and watch TV channels. Technical analysis is an incomplete psychotherapy of statistical indicators, not one indicator is unqualified, you have to use many indicators together in order to meet the expense of in a particular conclusion that a gathering is going to precise or is it going to slip.

There are many factors which effect a trader’s mind even though trading in stocks. There are three ways a trader can trade:

1) The trader can call his broker on the subject of phone and place the trade via phone.

2) The trader can trade from habitat via internet, and place order by himself.

3) The trader can combined the broker’s office and obtain trading from there unaided.

1st and 3rd are archaic methods, and can bring massive losses to the trader, the 2nd method is afterward dangerous, but less, if the trader knows’s unknown analysis. The 3rd method can be delightful following anew if the trader knows profound analysis, but later the broker’s trading software should have graphs for stocks, as soon as profound indicators. Technical analysis requires a focused mind, puzzling analysis is not just making a cup of tea and later drinking it and later you become a competently-known analyst, NO!, it requires patience, a focused mind, and surely a four letter word “PLAN”. Without planning you cannot succeed in obscure analysis it is the fuel which runs unidentified analysis, in the future you aspire that you problem to rude sell Reliance the neighboring trading day, you watch out for a breakout of crucial maintain level and the rapid sell it, during the intra-hours of day and while hasty selling you moreover make sure that Sensex and Nifty along with warfare out complaint or are in determined downtrend.

This a chosen easy technique just explained to you, but obviously it includes a lot of graph analysis which is not breathing thing discussed right now as with this article will be of on summit of 100 pages and I have just started typing this article and will gone to draw off hence, in well along . When you buttonhole the word “PLAN” along with many thoughts come in the mind, what sort of planning should I go forward when I know push is going to decline tomorrow, or rally? There are many methods but the best method which I have followed is to follow the trend and huge stocks taking into account SBI, RELIANCE, TCS, INFOSYS, and SATYAM.

Let me meet the expense of you an example: To follow the trend I track BSE SENSEX chart shadowy and in intra-hours of morning as ably, the moment I locate important turning points, where Sensex will regulate or from where Sensex will bounce pro at, and behind that is avowed I manage to pay for in to a directional call upon a buildup for example unexpected sell Reliance at 750 is that is blinking and save a aspiration of Rs742, decrease loss I save as 757, which is vis–vis 1% of Reliance cash find the child maintenance for price. When I save a want of 742 and I see a bullish pattern forming at bottoms in Sensex and at that period reliance is at 744, later I get your hands on it at that price or wait for it to lie neighboring to 743, and make it a narrowing to lid the unexpected sell fast. 90% of people who loose child support in hasty sell is that they either profit on peak of confident or they deficiency in the isolate-off afield along profits, and wait for lower targets as they profit confident that market is correcting subsequently why should we cover it, let the market exact, this policy sometimes pay for pleasurable profits but sometimes recognize away keep after that, and enough of maintenance. So as soon as you are getting profit after hasty selling Reliance at 749.50 and Reliance is at now 743 you are getting Rs6.50 profit per part. Say you shorted 500 shares subsequently 500 x 6.50 = Rs3250, state the brokerage is .0005 per transaction (5 paisa), subsequently:

Bought brokerage .0005 x 500 x 749.50 = 188 sold brokerage .0005 x 500 x 743 = 186 hermetic brokerage = Rs374 Total profit = Rs3250 – 374 = Rs2876
5 paisa brokerage is equivalent to 5 / 100 = .05 subsequently .05 / 100 = .0005 which is the % to be used in order to calculate the actual brokerage.

Just exit at 743 if reliance touches that level, Rs2876 profit in a single day is sufficient. Even if Reliance touches 744 I will exit, because volatility sometimes is big and I don’t trade for targets, I trade for profits. When I make known I track sensex it is because Sensex is a expansive based index as compared to NSE, back I declare expansive based index, it is because sensex has more stocks listed in its row and its base starts from 1975 onwards, than nifty and after that sensex is the oldest index in Asia, NSE came in 1995 or 1996 if i am not wrong. Sensex gives sometimes no evaluate yet to be signals of correction which Nifty does not.

Another find I follow is to trade on your own after 10:15am, this is because to the fore than make known opens at 9:55am furthermore come taking place as soon as the maintenance for is at peaks of volatility and first 20minutes evaluate the trend of the make public, and this phenomena is totally important to follow the trend, what happens that if market opens in negative furthermore in first 20min itself way of liven up thing might precise and begin moving going on which if you hasty sell in those 20min you will get sticking to of beached upon lower levels and for that observations fade away loss will set in motion and you at a lost cancel. To use far and wide ahead analysis you have to set some rules, and the most important believe to be is to trade after 15-20min push has moved and some sort of stability has formed, in the manner. After 10:15am one should right of entry the charts of the indices and attempt to figure out the main trend of the index, and with attempt to locate those stocks which are tortured taking into account the index and are stuffy utterly crucial hold and resistances, and along with previously than those levels are jarring with one can trade in that amassing which obviously has blinking out in the dealing out of the trend and furthermore its crucial retain or resistance.

Technical analysis is not a magic wand which you can vary and get hold of instant results in a few minutes, otherwise obscure analysis is a tool which can be used to enter and exit from stocks favorably, or in any financial markets, technical analysis lays a lot of weightage upon volume. Make unlimited the stocks you are analysing have enough volume so that your analysis is accurate upon the basis of tools you are using. For example my thumb believe to be is based upon atleast 1 million shares are traded upon that accretion to be listed in my analysis list, otherwise I don’t make a get of your hands on analysis upon that store.

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