Market Direction: Technical Point of View

Its a long time since I did a study on purely technical analysis.Now, is a good time to focus on pure Technicals. Lets have a glance at e few charts below.1. Lets look at at an indicator which Shail and I have did a study of. Its the difference between 5 DMA and 20 DMA of the Nifty. Right now it is in positive territory and touching the resistance line of the previous peaks. Any close above 6025 and this trend line gets broken upwards. A clear breakout.2....

Read More

Its Vacation Time

This was a truncated week for the markets. The Nifty moved up by 1.6 pc, the FIIs remained net sellers and there are expectations of no major moves in the holiday season. But, stock markets are known to surprise and we never know what is in store. Lets examine the fundamental and technical factors at play here.1. On the Domestic front, the the 2G scam got murkier, the CBI made a show of taking action.What could queer the pitch if A Raja actually gets arrested next week. There are 2 possibilities if this arrest is made. One is DMK drops Raja like...

Read More

Risk Management and Investing

I had written a guest post for Subhankar.In this month’s guest post, Nishit covers the related topic of Risk Management. Properly assessing and understanding the risks involved in one’s investment plan and taking appropriate steps to mitigate those risks helps in formulating a proper asset allocation plan to suit one’s individual investment style and risk tolerance level.-------------------------------------------------------------------------------------------------------------One of the most important topics that every person who makes any investments...

Read More

Uncertain Times in December

This was a roller coaster week for the markets and the markets lost 2.3% of the index value. There were certain takeaways for each of us, which if adhered will save us a lot of money if not make money. Lets examine the key events for the markets.1. FIIs were net sellers each day of the week. The selling intensified as the week went by and at the end of the week they had dumped almost 1 billion dollars worth of stocks.2. Even though the Indices declined only 2.3%, the broader market was butchered. Have a look at today's Economic Times and see the...

Read More

Posts from Shail

I am happy to say that Shail will posting as and when his schedule permits him to post. Shail, is one of the technical analysts whom I greatly admire for his out of the box thinking. I again ventured into TA with Shail's help. Lets enjoy his pos...

Read More

INR movement v/s Indian Equity

The two charts shown above illustrates the correlation between INR and S&P CNX Nifty from jan 2007 onwards, this clearly indicates that stronger rupee shows bullish sentiments of FII, although now DII also contributes significantly, in to Indian capital market.The bar chart below shows the net FII inflow in Indian capital markets in the same period which partly explains the stronger or weaker rupee in the period of study. Although the value of...

Read More

Wikileaks: Impacts and significance

This week the world was rocked by the Wiki leaks expose of American Diplomatic cables by the now now (in) famous Wiki leaks expose. What is wiki leaks and what is its significance?To skip re-inventing the wheel, have a look at the wiki site below:http://en.wikipedia.org/wiki/Julian_AssangeNow, lets see the ramifications. In the short term, the expose of the diplomatic cables and confidential information being shared in the public domain is just a small event making headlines. The basic gist was the expose of US secret moves and name calling of...

Read More

Introduction to Options - Part 1

Options are one of the most lucrative ways of making money in the markets. The flip side is that they can lead to huge losses if not dealt with correctly. Let us explore the world of options. To begin with there are 2 type of Options, Put option and a Call Option. Put Option gives the buyer to sell a stock or index at a particular strike. It gives the buyer the right to sell at a particular strike price but not the obligation to sell. It is similar to taking insurance on your house or car. Buying a call option gives the buyer the right to buy a...

Read More