Stock Market Education

29.09.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 27 : Fibonacci - Fibonacci Retracement in Down Trend As we all know that in any trend whether its Up Trend or Down Trend, there are two internal trend known as, 1 ) Primary Trend ( Main Trend - Long TermTrend) 2 ) Secondary Trend (Correction Phase) In early postings of this blogs, I wrote in detail about the Primary Trend and Secondary Trend, in type of trend section If any one wish to know about in detail, please refer early blogs of this series of Smart Education Series Fibonacci Retracement is mainly use to forecast Secondary Trend, it means it help to forecast the resistance level of the price once correction has been already started in the stock in Down Trend Here first we clear one important thing to avoid confusion that, correction phase in down trend means stock price show upward side movement in Down Trend Here we are discuss the scenario in Down Trend, when correction start...

29.09.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: IFGL Refractories Limited (CMP 161)   ENTER LEVEL – 140 TO 150 STOPLOSS 90 TARGET 300-350 IN 24-36 MONTHS IFGL Refractories Limited (IFGL) - is an Indian Multinational Company from S K Bajoria Group,is listed both on BSE and NSE, have manufacturing facilities in China, Germany, India, UK and USA. IFGL merged with its subsidiary, IFGL Exports Limited, also engaged in manufacture of Continuous Casting Refractories effective FY2016-17 and renamed itself from IFGL Exports to its present name. IFGL Refractories Ltd. is a manufacturer of Specialized Refractories and requisite operating Systems for Iron and Steel Industry. It has a large pool of trained engineers and application specialists to offer customers total solution for Refractory for flow control in Steel Teeming and Continuous Casting of Steel. Refractories - Refractories are material having high melting points, with properties that make them suitab...

29.09.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: After testing the Support Zone (confluence of Weekly Trend line and 100 Weeks MA) for six consecutive weeks, the Market has moved higher and is now looking ripe and ready to challenge the upper end of the Trading Range which is defined by Nifty 200dma (11222). A close above Nifty 11222, will take the Nifty higher to test the strong Resistances at 11399-11771. For the first time in many weeks, the Mid-Cap and Small-Cap indices have made a strong comeback. A Rally for the mid-cap and small-cap stocks is long overdue as many stocks are into Oversold Territory not only in weekly but even in monthly timeframe. Thus as a trader one can look for opportunities to go long in selected mid-cap and small-cap stocks as the momentum begins to pick up. Technically Speaking :- Sensex opened the week at 36969, made a high of 37435, low of 36784 and closed the week at 37384. Thus it closed the week with a gain of 403 points. At th...

22.09.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 26 : THE MARUBOZU (One Candlestick Pattern) Description: The marubozu candlestick pattern is a long candle, which implies that the day‘s trading range has been large. And it should have no upper or lower shadow (marubozu in Japanese means ―shaved‖). Criteria: 1. Trend should be down or up for a good period. 2. The body of the candlestick will be green or red and long. 3. There are no upper or lower shadows. 4. The candle showing the market is in control of Buyers or Sellers. 5. For confirmation Buy/Sell if market opens Gap up or down or sustain above/below the closing of the previous candle. 6. Large volume on the Marubozu day increases the chances that a blow-off day has occurred although it is not a necessity. 7. Stop loss will be the Low or High of Marubozu. 8. Target 1:2 Ratio minimum for more modify stop loss time to time. Pattern Psychology: A Green Marubozu s...

22.09.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: MEGHMANI ORGANICS LTD (CMP 57)   ENTER LEVEL – 50 TO 54 STOPLOSS 44 TARGET 120-150 IN 18-24 MONTHS Incorporated in 1986, Meghmani Organics Limited manufactures, sells, and distributes pigments and pesticides. The company operates in three divisions: Pigments, Agrochemicals, and Basic Chemicals. The Pigments division offers phthalocynine green 7, copper phthalocynine blue, alpha blue, and beta blue pigments that are used in various applications, including printing inks, plastics, paints, textiles, leather, paper, and rubber. The Agrochemicals division engages in the manufacture and sale of technical, intermediates, and formulations of insecticides, fungicides, and herbicides, which are used in crop protection, public health, termite and insect control, and veterinary applications. It offers its formulations primarily under the Megastar, Megacyper,Megaban, Synergy, and Courage brand names. The Basic Chemic...

22.09.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: It was a historic day for the market as the Government swap into action bringing in much needed relief. Both Sensex and Nifty posted their biggest single day gain in 10 years after the FM announced a cut in Corporate Tax from 30% to 25.17%, which will directly improve the profitability and show in the bottom line of the company. Bank Nifty gave a rocket like move and surged over 2600 points which is the highest single day upward move ever, thereby saluting the path-breaking reforms process undertaken by the Government. Now gate is open for 11800. FM first started the reform process by PSU Bank consolidation, followed by their Recapitalization and now directly reducing the Corporate Tax to 25.17% and 15% Tax for new entrants setting up manufacturing units. This Reformatory step has put a cap on the downside and broken the Trading Range (10700-11200) on the upside. This has opened the doors to Nifty 11771-11797 in the ...

14.09.2019 *AAKASHAYA PATRA WEEKLY MARKET OVERVIEW:*  After testing the Support Zone (confluence of Weekly Trendline and 100 WeeksMA) for six consecutive weeks, the Market has moved higher and is now looking ripe and ready to challenge the upper end of the Trading Range which is defined by Nifty 200dma (11222). A close above Nifty 11222, will take the Nifty higher to test the strong Resistances at 11399-11771. For the first time in many weeks, the Mid-Cap and Small-Cap indices have made a strong comeback. A Rally for the mid-cap and small-cap stocks is long overdue as many stocks are into Oversold Territory not only in weekly but even in monthly timeframe. Thus as a trader one can look for opportunities to go long in selected mid-cap and small-cap stocks as the momentum begins to pick up. Technically Speaking :- Sensex opened the week at 36969, made a high of 37435, low of 36784 and closed the week at 37384. Thus it closed the week with a gain of 403 points. At...

14.09.2019 *AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT:*  KRITI INDUSTRIES (INDIA) LTD (CMP 27 )   ENTER LEVEL – 25 TO 23 STOPLOSS 18 TARGET 50-60 IN 12-18 MONTHS Incorporated in 1990, Indore based, Kriti Industries (India) Limited manufactures and sells plastic products in India. The company offers RPVC pipes and fittings, casing pipes, PE coils, sprinkler systems, submersible pipes, suctions, garden pipes, SWR and drainage pipe and fittings, CPVC and plumb pipes and fittings, micro irrigation laterals, RPVC ring fit pipes (elastromeric) and fittings, HDPE and MDPE pipes and fittings, PLB telecom ducts, and micro ducts under the Kasta brand name. It serves agriculture, building products, micro irrigation, and infrastructure sectors. It has an equity base of just Rs.4.96crore that is supported by reserves of around Rs.76.36crore. The promoters hold 65.87% while the investing public holds 34.13% stake in the company. Promoters have increased their stak...

 14.09.2019 *AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 25 :* Leading and Lagging Indicators A Technical indicator is a mathematical formula applied to the security‘s price, volume or open interest. The result is a value that is used to anticipate future changes in prices.A technical indicator is a series of data points derived by applying a formula to the price data of a security. Price data includes any combination of the open, high, low or close over a period of time. Some indicators may use only the closing prices, while others incorporate volume and open interest into their formulas. The price data is entered into the formula and a data point is produced. Difference between the Indicator and Oscillators Technical indicators are tools that provide to traders an indication about the movement or direction of the stock or commodity. These indicators are generally used as additional information before one takes a decision to buy or sell a shar...

08.09.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 24  Gap And Gap Analysis What is Gap? A gap is an area on a price level on a chart where no trading occurred. This type of gap can occur in any time frames but, for swing trading, we are mostly concerned with the daily chart, weekly chart. A gap forms on a chart when the stocks opens higher or lower of the previous candle‘s closing price. Why would this happen? Lots of reasons can cause this, such as an earnings report coming out after the stock market had closed for the day. If the earnings were significantly higher than expected, many investors might place buy orders for the next day. This could result in the price opening higher than the previous day's close. This happens because buy or sell orders are placed before the open that cause the price to open higher or lower than the previous day's close. If the trading that day continues to trade above that point, a gap will e...

 08.09.2019 AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: Not for the first time, did the Sensex Support Zone (36894-36018) defined by the confluence of Weekly Trendline (36894) and 100 WMA (36018) came into focus for protecting the Market from eroding down any further. The above mentioned Support Zone which forms the lower boundary of the Trading Range, has been giving Support for five consecutive weeks now. Every time it has been tested, it has proved its mettle. A repeated but successful testing of the Support Zone for so long, lends credence to the theory that the Market seems to be preparing for an upward breakout by taking out the upper boundary Resistance in the form of Nifty 200dma (11215). Only if we are able to cross Nifty 11215, the Market will move further up to test the strong Resistances of 11399-11771. Technically Speaking :- Sensex opened the week at 37181, made a high of 37188, low of 36409 and closed the week at 36981. Thus it closed the week with a...

 08.09.2019 AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: ESTER INDUSTRIES LTD (CMP 34)   ENTER LEVEL – 31 TO 33 STOPLOSS 22 TARGET 55-60 IN 12-18 MONTHS Ester Industries Limited is a public limited company incorporated in 1985 promoted by the Singhania family. The company is one of India's leading producers of Polyester Films, Engineering Plastics and Speciality Polymers having a track record of continually developing new and innovative products for customers across the globe. Ester Industries has state of the art manufacturing facilities in khatima in Uttarakhand with the capacity of 67,000 TPA of Polyester Resin, 57,000 TPA of Polyester Film,30,000 TPA of Specialty Polymers and 16,500 TPA of Engineering Plastics. The company currently exports more than 30% of its production of Polyester Films with sales and distribution network in more than 56 countries across the world resulting in strong customer relationship. Specialty Polymers are manufactured pri...

02.09.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 23 : Money Flow Index (MFI) Oscillator MFI is based on volume The Money Flow Index (MFI) is belongs from oscillator family, MFI is based on volume. It is very similar to the Relative Strength Index (RSI). The difference between is that the MFI based on volume, whereas the RSI based on price. The Money Flow Index measures the strength of money flowing into and out of a stock. Like the RSI, the MFI is a range-bound oscillator that oscillates between 0 to 100 and is often calculated using a 14 day period. It works in a similar way as the RSI. If MFI is above 80; it is considered overbought stocks and if MFI is below 20 is considered oversold stocks. But in Strong trends these signals may misleading. Calculation of MFI: Step 1: Calculate the typical price The typical price for each day is the average of high price, the low price and the closing price. Typical Price = {(Day High + Day...