Stock Market Education

25.08.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 22 : Fibonacci Continue of last series Support and resistance areas Since so many traders watch these same levels and place buy and sell orders on them to enter trades or place stops, the support and resistance levels tend to become a self-fulfilling prophecy. Fibonacci Retracement Levels - To calculate the Fibonacci Retracement levels, a significant low to a significant high should be found. From there, prices should retrace the initial difference (low to high or high to low) by a ratio of the Fibonacci sequence, generally the 23.6%, 38.2%, 50%, 61.8%, or the 76.4% retracement. Retracement is based on the numbers identified in Fibonacci sequence to define area of support and resistance. Once these levels are identified, horizontal lines are drawn to indicate areas of support or resistance at the key Fibonacci levels before prices continue to move in the original direction.  When the...

25.08.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: NCL Industries Limited (CMP Rs.104)   ENTRY LEVEL: 100 to 95 STOP LOSS: 70 TARGET : 200 TIME FRAME: 12-24 MONTHS NCL Industries Limited (NCL) - Hyderabad-based NCL Industries, incorporated in 1979, is into cement, particle boards, ready-mix concrete and hydro power. For the past three decades it has been supplying the construction industry with its top quality building materials through Nagarjuna Cement brand. It is a strong regional operator and has been a household name in Andhra Pradesh, popularly known as "Monagadu" cement in Telugu.NCL forward integrated into value-added products with cement boards and ready-mix concrete. It has two small hydro-electric plants, of 7.5MW in Andhra Pradesh and 8.25MW in Karnataka. NCL has one of the largest distribution networks across the country, with more than 1,600 cement dealers and 300 distributors for boards.Nagarjuna is the only private company in Andhra ...

25.08.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: Despite being a selling week by FII and FPI, it was a very volatile week but by Saturday Finance minister stumilus package will pull nifty from the current level. Nifty took support at the Confluence Support Zone defined by the combination of Weekly Trendline along with 100 Weeks Moving Average. Hence the 'Hope' Rally which started a week before continued this week but lacked conviction and strength. Only if Nifty is able to close above 10873(take support @ 10640), will it be able to gather some strength and move up; expecting strong Resistances at 11083-11508. Till then all rallies are likely to be weak and short lived as Market will treat those rallies as Shorting opportunities. Technically Speaking :- Nifty opened the week at 11019, made a high of 11045, low of 10626 and closed the week at 10826. Thus the Nifty closed the week with a loss of 393 points. On the daily charts, Nifty have formed a smal...

18.08.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 21 Fibonacci A magical number series introduce by Italian Mathematician Leonardo Fibonacci  (period 1170- 1250) We will discuss about 1) Fibonacci Series 2) Fibonacci Ratio 1)Fibonacci Series :- Series star from 0, in some book it start with 1 Each number is the sum of two preceding number and series goes on 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89,144, 233,377,610 ,987,1597,2584 We also found Fibonacci number in so many examples in nature like in Pineapple Cone, Sunflower's Seeds, Flower of Lily, Sea Shells etc. 2)Fibonacci Ratio :- On the basis of this series below are the some famous time tasted and trusted ratio are well famous (1) 23.6% (2) 38.2% (3) 61.8% 1)The 23.6% ratio found by dividing one number in the series by the number is the three place to the right 13/55, 55/233 610/2584.... 2) The 38.2% ratio found by dividing one number in the series b...

18.08.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: Despite being a truncated week, it was a very volatile week nonetheless. On each of the three days, Nifty took support at the Confluence Support Zone defined by the combination of Weekly Trendline along with 100 Weeks Moving Average. Hence the 'Hope' Rally which started a week before continued this week but lacked conviction and strength. Only if Nifty is able to close above 11178, will it be able to gather some strength and move up; expecting strong Resistances at 11399-11771. Till then all rallies are likely to be weak and short lived as Market will treat those rallies as Shorting opportunities. Technically Speaking :- Sensex opened the week at 37755, made a high of 37755, low of 36888 and closed the week at 37350. Thus it closed the week with a loss of 231 points. At the same time the Nifty opened the week at 11139, made a high of 11145, low of 10901 and closed the week at 11047. Thus the Nifty closed the...

18.08.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: Relaxo Footwear (CMP Rs. 426.00) ENTRY LEVEL: 400 to 425 STOP LOSS: 300 TARGET : 650 TIME FRAME: 18-24 MONTHS Relaxo has reported better Q1 numbers.Its net profit rose 8.3% to Rs 49.75 crore on 15.4% rise in net sales to Rs 648.30 crore in Q1 June 2019 over Q1 June 2018. EBITDA increased 28% to Rs 106 crore in Q1 June 2019 from 83 crore in Q1 June 2018.The EBITDA margin grew to 16.4%. The company reported that it has proposed to increase the capacity of Bhiwadi plant, Rajasthan plant. The company is proposing to add capacity of 1.00 Lakh pairs. The capacity will be added in three years with a total investment of Rs 90 crore for the installation of plant. Relaxo Footwear is one of the leading brand in footwear industry. The company is expanding its reach in southern and western India. Since the product range primarily includes economically priced footwear, a significant chunk of this growth will be led by high...

11.08.2019 *AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 20 :*  ATR -(Average True Range ) Volatility Indicator Leading Indicator, Lagging Indicator, Trend Following Indicator which are directly or indirectly related to forecast the trend and price direction But this is a Volatility Indicator which does not having any relation with Trend or Price, It indicate the volatility in security's price it means it focus on Ups and Down of the security in specific time frame. ATR Calculation :- ATR Calculation base on True Range Calculation Method 1: Current High less the current Low Method 2: Current High less the previous Close (absolute value) Method 3: Current Low less the previous Close (absolute value) Current ATR = [ (Prior ATR x 13)+ Current TR] / 14 - Multiply the previous 14-day ATR by 13? - Add the most recent day's TR value? - Divide the total by 14 Use of ATR in setting Stop Loss :- When we add ATR indicator, i...

11.08.2019 *AAKASHAYA PATRA WEEKLY MARKET OVERVIEW:*  After 5 weeks of Bearishness, the Momentum Oscillators like RSI and Stochastic were into Oversold territory. In this backdrop, Nifty took Support at the confluence of Weekly Trendline and 100 Weeks Moving Average. Same was the case with Sensex as it took Support at the weekly Trendline and ditto with Bank Nifty. In the meanwhile, the FM finally has woken up to the carnage happening in the market post the Budget. Hence there is a Hope that the FM will announce some tweak in the taxation of FPIs and possibly some measures to bring back the confidence in the stock market, besides announcing some relief package for the beaten down Auto sector and Real Estate sector. Thus the current Relief Rally is more of a 'Hope' Rally. How far the Market move up depends on how much 'Relief' the FM can provide. Expect strong Resistances for the Nifty at 11399 - 11771. Technically Speaking :- Sensex opened the wee...

 11.08.2019 *AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT:* Subros (CMP Rs. 201.00) ENTRY LEVEL: 180 to 200 STOP LOSS: 146 TARGET : 350-400 TIME FRAME: 18-24 MONTHS Shares of B Group listed Subros have face value of Rs. 2. The shares touched a high of Rs. 379 and low of Rs. 163 in the last 52 weeks. The company has a monopoly in air conditioners in automobile sector, and makes ACs for cars, buses,trucks and railways. Maruti Suzuki, Tata Motors and Mahindra & Mahindra are among its clients.The   company’s radiator business is gaining traction, and there is tremendous scope for further growth. Promoter holding in the company is 36.79%. For the March quarter, Subros reported income of Rs. 518 crores and profit of Rs. 16.20 crores. It will announce June quarter results soon.The company has a market cap of Rs. 1186 crores, equity of Rs. 13.05 crores, net-worth of Rs. 680 crores, and debt of Rs. 187.75 crores.

04.08.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 19 Put-Call Ratio The Put-Call Ratio is a useful tool to gauge the market pulse. If traders are buying more puts than calls, it signals a rise in bearish sentiment. If they are buying more calls than puts, it suggests that they see a bull market ahead. The put-call ratio is calculated by dividing the number of traded  put options  by the number of traded call options.  A put-call ratio of 1 indicates that the number of buyers of calls is the same as the number of buyers for puts. However, a ratio of 1 is not an accurate starting point to measure sentiment in the market because there are normally more investors buying calls than buying puts. So, an average put-call ratio of .7 for equities is considered a good basis for evaluating sentiment. The put-call ratio helps investors gauge market sentiment before the market turns. However, it's important to look a...

04.08.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: For the 5 th consecutive week, Nifty was down and out for the counting, forming a Big Opening Black body Marubozu . The Bears were in smart control, breaking each critical Support like the Weekly Gap and the 200dma with ease, which does not augur well for the Market. In just two months, relentless selling by the FPIs has seen Nifty fall by more than 10% without any meaningful Pull-Backs. Trend has turned Bearish and any minor Pull-back is getting sold into. On Friday, the Nifty took Support at the confluence of long term Weekly Trend line at 10905 accompanied by the 100 Weeks MA (10848). Interestingly all the Momentum Oscillators are in Oversold Zone, which suggests that finally a Relief Rally may be around the corner Technically Speaking :- Sensex opened the week at 38043,made a high of 38043, low of 36607 and closed the week at 37118. Thus it closed the week with a loss of 764 points. At the same time the Ni...

04.08.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT:  AJANTA PHARMA LTD (CMP955) ENTRY LEVEL: 900 to 930 STOP LOSS: 840 TARGET : 1250-1350 TIME FRAME: 12-18 MONTHS Ajanta Pharma is a specialty pharmaceutical formulation company having branded generic business in India and emerging markets, generic business in US and institution business in Africa. The company offers products in various therapeutic segments, such as anti-biotic, anti-malarial,anti-diabetic, cardiology, gynecology, pediatric, respiratory, general and health products, dermatology, ophthalmology, pain management, and others. The company provides its products in various dosage forms, including tablets, capsules, powders, ointments, eye drops, and cough syrups. Many of company's products are 1st to market and are leading in their sub-therapeutic segments. Company’s state of the art R&D centres for formulation development and API are located at Mumbai, having a team of 850+ scientists. C...