Union Budget 2013: How should Nifty trader trade ?

Highlights of Economic Survey
1. FIIs sold 25  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 1.4 cores with net Open Interest increasing by 38839 contracts.FII has done rollovers yesterday and will trade heavily in March segment tommrow.
2. General Budget of 2013-14 will be presented tommrow at 11 AM. Lot of Volatility will be seen, as seen in below chart. Will request readers/traders who cannot digest the huge swings to stay away from market. Just watch the show from sideline, do not let your hard earned money to go for a toss. Below is the Swings we have seen on Budget day from 2007.

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Nifty Option Trading Strategy for Budget Day 2013

General Budget will be presented by Finance Minister P Chindbram on 28 Feb.Budget is one of the most awaited events from stock market perceptive.We see Nifty trading in wide range of almost 150+ points and volatile moves will be seen. As most of retail investor will prefer trading the Option Route to trade ( They should not trade but still they cannot resist the temptation of not trading ;) ). 28 Feb also being an Expiry day will add more to Volatility.

The above depicts the Voaltality and Range Expansion Nifty has witnesed in past 6 Budget session.Just by going at the sheer number its looks mind boggling. So Stop Losses are must for traders on Budget day. Traders who are weak heart and cannot digest the bout of volatility you are going to witness just stay away from market.
So Following Option  Strategy can be used to play the Budget day:
A long ..

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Bear Ruling Dalal Street

Railways Budget did not went well with market, as there was no fare hikes and freight rate hike. Some sweet talking and big propaganda plans which mostly remain on papers.Market took this as a sign of General Budget coming negative and tanked. Highlights of Railway Budget for 2013-14
1. FIIs sold 43754  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 1271 cores with net Open Interest increasing by 177542 contracts. Core Education: Is it a Buy ?
2. As CNX Nifty Future was down by 91...







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Core Education Stock Crash

Core Education shares dropped as much as 65 per cent to Rs. 99 before making some recovery. It is India's largest global education company and provides transformational and innovative solutions in the education space. Core Education had reported a consolidated sales turnover of Rs. 485 crore and a net profit of Rs. 68 crore for the October to December quarter.LIC has 2% stake in core education,many leading FII have 12% stake. As rumors were saying selling of pledged shares, which have gone completely wrong. As management have clarified and as per exchange data  Cresta Fund sells 13.75 lakh shares of CORE Education where the daily average is just 30K shares because of this demand and supply mismatch stock took a plunge. To add to woes stock does not have any circuit filters. Stock fundamentals have not ...


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Mid Cap Crash

Today once again Retail Investor were taken off guard with a carnage in Mid caps stocks. Core education lost more than 60% of its market capital in few hours, Many other stocks dived more than 20% of their market cap.The sharp selloff was in contrast to the benchmark Sensex and Nifty which traded flat.
Core Education shares plunged around 60 percent, leading the wave of distress sales in many mid-cap shares today. The reason for the free fall is not yet clear, but brokers said it could most likely be due to financiers selling the shares pledged with them by promoters or market operators. Another theory doing the round is that the slide may have been sparked off by some brokerages liquidating derivative positions of some of their large clients, because of their inability to honor margin commitments.
Another story doing round is Sanjay Danghi ..


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Railway stocks Technical Analysis

Kernex Microsys

The Railway Budget 2013-14 is scheduled to be presented in the Lok Sabha on February 26.Railway stocks has not shown any spike up as they mostly do. Stock has shown a decline of 8.4% with rise in volumes last Friday.
Kernex is trading near its 200 DMA, and strong support of 56 as seen in above chart. Breaking the support of 56 stock can decline till 52 odd levels.

Buy above 59.5..

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Nifty trading strategy Budget week

Bears kept ruling the Dalal Street for 4 week in row as Sensex and Nifty closed at 2013 low, with Nifty closing with cut of 0.6%, .Next week stocks will sway as per FM talks as he will present the most waited event the Union Budget on 28 Feb Railway Budget of 26 and Economic Survey on 27 will be tabled in parliament.  To add spice to trading its the expiry week also, So Bumper Dhamkha and rise in volatility will be seen.  As per Last week Analysis Nifty moved above Weekly trend deciding level of 5915 makes the exact high at 5970 which is first resistance turned back and went till support 2 of 5830

Lets discuss Nifty Trading Strategy for Next week.

 Nifty Hourly Chart

Nifty is trading below....

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When not to Trade in Stocks,Commodity

Traders who trade financial markets should also know when to stay out or not to trade. Trader should trade when opportunity arises based on his trading system and trading strategy. Knowing when not to trade is also a vital part of trading plan .Wait for opportunity to come think of Sachin he does not hit 4 on every ball but when he sees an opportunity he goes ahead.

• When you are confused and don’t know what to do, do nothing.

• There are no set ups on your watch list, then don’t trade.

You are a trend...

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Can Money be made in Trading

Trading is a fascinating job,  As a trader there is no need commute to work place, No Boss to Nag you, no project deadline. You are your own master and you decide when to work and when not to. Many people heard stories of traders make million  in short frame of time, and get attracted to make trading as full time career.
Movies Like Wall Street have portrayed traders trading from home for few hours and enjoying holidays in exotic location.
Well this might be reality for few traders , but majority of traders have a different reality.  They put in a lot of time and money, spend countless hours in front of their computers and yet their trading account is not growing. In fact, it is said that the majority of traders LOSE money.
As i discussed yesterday Are you trading on Luck or trading Skills ?  Traders has to go through school of hard knocks before he can be profitable on consistent .You won't become a trader overnight. In the beginning, trading will be grueling and frustrating. Your results will not match your efforts and that's the reason an average trader have trading life will not span more than 3-4 years. But once a trader get used to this he is opening doors for unlimited opportunities.
So to make money as Stock trader is not easy as discussed, You can't just buy ..


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Technical Stock Calls: LT,Maruti and ICICI Bank

ICICI Bank

ICICI Bank is taking support at its upward rising trendline as show in above chart.Stock has been falling continuously from its result day. If this trendline breaks on closing basis tommrow stock can drop quickly to 1008-1011 levels where important and strong support is placed.

Sell below 1075..

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S&P CNX Nifty and Bank Nifty Trading Strategy for 22 Feb

1. FIIs sold 16440  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 486 cores with net Open Interest decreasing by 7418 contracts. Are you trading on Luck or trading Skills ?
2. As CNX Nifty Future was up by 110 points Highest in past 7 months  with Open Interest in Index Futures decreasing by 7418 so FII again did short covering today in Nifty Futures as we discussed yesterday FII carrying shorts in Bank Nifty today Bank Nifty was down 350 points :) .
3. NS closed at 5852 after  making high...

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Stock Trading Recommendations:OFSS,BPCL and KTK Bank

OFSS

OFSS bounced back sharply from its 200 DMA,and formed a bullish engulfing pattern today supported by volumes. Stock is entering into resistance zone of 3114-3120.

Sell below 3090 Tgt..

 

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S&P CNX Nifty and Bank Nifty Trading Strategy for 21 Feb

1. FIIs bought 12240  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 366 cores with net Open Interest increasing by 20800 contracts. Are you an average trader?
2. As CNX Nifty Future was up by 10 points with Open Interest in Index Futures increasing by 12800 so FII did short covering today in Nifty Futures but Bank Nifty still remains a shorting candidate.
3. NS closed at 5943 after  making high of 5971 and low of 5937.Nifty continued with formation of  Higher High and Higher Low and today also but unable to sustain at higher levels. Range of 5950-5974 is tricky ..

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Stock Trading Strategy

Knowing the difference between you making a mistake or the market simple not matching your style will go a long way in keeping down your stress and negative self talk. 

Infosys

Infosys gave a explosive upmove on its results day and then went into slumber mode,from past 28 days stock has been trading in range of 2741 to 2836. Infosys is trading in Horizontal channel and best trading strategy is Sell at top end of channel and buy near the lower end of support till breakout and breakdown occurs.

Sell below 2803 Tgt...

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Nse Nifty 50 Technical Analysis

1. FIIs sold 14202  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 421 cores with net Open Interest increasing by 12068 contracts. Are you Victim of “Out of Control Trading”
2. As CNX Nifty Future was up by 49 points Highest in Feb Series with Open Interest in Index Futures increasing by 12068 so FII did short covering on small basis. Net on Net they are still short in Index.
3. NS closed at 5940 after  making high of 5948 and low of 5883.Nifty continued with formation of  Higher High and Higher Low and today formed a Bullish engulfing pattern. Range of 5950-5974 is tricky range an

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Intraday Calls:SBI,ranbaxy and Idea

“Why are you trading? As with any long-term pursuit, it’s nice to have goals and rewards. What are you going to do with the money? Set small targets and reward yourself.”

SBI

SBI made low of 2175 on results day and has been rising from past 2 days, Stock is approaching rising trendline resistance and moving average of 100 DMA which can put break to the rally.

Buy above 2277 Tgt..

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Nse Nifty 50 Technical Analysis

1. FIIs sold 13959  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 416 cores with net Open Interest increasing by 13443 contracts. When to Exit a Trade
2. As CNX Nifty Future was up by 11 points  with Open Interest in Index Futures increasing by 13443 so FII have continued adding shorts in Nifty and Bank Nifty future. Today volumes in Nifty Future were at 5 year low.
3. NS closed at 5898 after  making high..

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FII FnO analysis

1. FIIs sold 25369  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 744 cores with net Open Interest increasing by 26701 contracts. Stock Trading Success:Overcome these Obstacles
2. As CNX Nifty Future was down by 8 points  with Open Interest in Index Futures increasing by 26701 so FII have continued adding shorts in Nifty and Bank Nifty future.
3. NS closed at 5887 after  making high of 5909 and low of 5854.Nifty bounced from 5854 filling the small gap near 5856, Nifty was unable to closed above 5890 which is 61.8% retracement from 5547-6112. Range of

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Warm Regards,

Bramesh Bhandari

Tel:+91-9985711341

Email:bhandaribrahmesh@gmail.com

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Technical Stock Trading:IDFC,Rel Capital and Renuka

“In the beginning your aim should be to develop confidence and structure. Get comfortable with your trading strategy, develop good habits and discipline and be prepared to do whatever it takes to achieve success. It is critical that you avoid getting yourself into a situation where you are desperate and have to make money – this is the situation that more than any other seems to have
the most destructive effect on a person and their ability to trade well.”– Matthew Silvester

IDFC

IDFC is trading in downward channel, On Friday touched the lower end of channel and bounce back forming a Bullish engulfing pattern. Short term reversal is on cards till 152 is not broken.

Buy above 158.6 Tgt

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Nifty Daily Weekly and Monthly Charts Analysis

Bears kept ruling the Dalal Street for 3 week in row as Sensex and Nifty closed at 2013 low, with Nifty closing with cut of 0.3%, .Headline Inflation cooled off to 6.6% lowest in Jan with Core Inflation also coming at 4%, IIP data continued to be dismal at -0.6%. Moody warning of widening CAD has fizzled the optimism of improvement in Inflation. Budget is coming near and stock specific action will be name of the game.

Lets discuss Nifty Trading Strategy for Next week.

 Nifty Hourly Chart

Nifty is trading below 50 SMA which lies at 5914. Nifty made a brief move above 5969 to fall back below Weekly Trend Deciding level of..

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Which Trading Style Suits you ?

To be a successful trader you need to find a "Trading Style" which suits you "THE BEST" , in terms of risk appetite, stress,money management. A trader who is not comfortable with his trading style or has not found trading style are the one who commits the trading sins and blow of their trading account.
Trading can be broadly classifies into:

• Day trading
  
• Swing trading or Positional Trading.

Let's define these two terms:

• Day Trading is also known as 'Intraday'. It  means opening and closing a position within the same trading day. Traders who are intrested in scalping,quicker and smaller  profits and who can make multiple trades per day work on this strategy.

Swing Trading means that you are trying ..

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Successful Trader Secrets

Know yourself. – You can’t improve on something you don’t understand”. Vince Lombardi Leadership Rule#1

All successful traders have one common trait they have high understanding about themselves. How they react to certain situation, they envisage themselves in such situation like when their Stoploss gets trigger how they will react and such emotions are noted in their trading plan. So when in reality such situation occurs it’s not a surprise to them and they never overreact.
Leading traders realize that they are not in control of the market, Market is Like a Wild elephant which moves like it want to do, it do care about who comes in its way and have no ..

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Intraday Swing Trading:HCl Tech,Pantaloon and Petronet

HCL Tech

IT sector is on a run after cognizant increased its full year guidance. HCL Tech, TCS are making life Highs. HCL Tech is trading in  Horizontal channel between 650-720. Wide range of 70 points. Looking at Huge negative divergence in RSI, I expect Stock keep trading in its horizontal channel.

Sell below 707 Tgt..

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How to Trade SBI,DLF and Tata Motors on result day

SBI

SBI will be coming out with its results today around 12-1 PM, Stock has been falling from 14 trading sessions on expectation of bad results. Its said banks will only be able to recover 30% of the load given to Kingfisher airlines. So rise in NPA is expected which street will not like. As the stock has corrected from past 14 trading sessions bad results have already been digested and any surprise can spark a rally.Technically stock is consolidating near its 100 DMA and rising trendline from low of 1815.

Buy above 2273 Tgt..

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FII FnO analysis for 14 Feb trade in Nifty Futures

1. FIIs bought 5047  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 152 cores with net Open Interest increasing by 7847 contracts. Time to be Cautious Investor Sentiment at all time High:Extreme Bullishness
2. As CNX Nifty Future was down by 5 points  with Open Interest in Index Futures increasing by 3115 so FII have booked profits in longs created yesterday. Nifty Future Opened gap up and story of last few trading sessions repeated again, Opening in green and closing in Red.

3. NS closed at 5933 after  making high..

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Stock Technical Analysis: Free Stock Analysis

Sun Pharma

Sun Pharma has been rising, once the company decided not to buy TARO. Stock has ben respecting its long term trendline rising steadily.Sun Pharma is forming an Inverse Head and Shoulder pattern with neckline at 776. Pattern gets active above 776 only and target comes around 850.

Buy above 776 Tgt..

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FII FnO Analysis for 13 Feb Trade in Nifty Futures

1. FIIs sold 7917  Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 237 cores with net Open Interest increasing by 3115 contracts. Do you trade on Hope ? Read this Traders biggest enemy :HOPE  
2. As CNX Nifty Future was up by 20 points  with Open Interest in Index Futures increasing by 3115 so FII have booked profits in longs created yesterday. Again Today carnage was seen in Mid caps, Realty stock took beating with Unitech down 25% due to 2G scam news , DB Realty 17% and ADAG took beating before recovering. Many  traders have lost a fortune in last 7 days :( due to lack of trading system/trading plan  and trading on emotions of Hope,Greed  thinking stocks will bounce-back.

3. NS closed at 5923 after  making high..

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FII FnO Analysis for 12 Feb Trade in Nifty Futures

1. FIIs bought 10694 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 382 cores with net Open Interest increasing by 22916 contracts. Are You Emotional Trader– Take Self Evaluation Test
2. As CNX Nifty Future closed at same level as Friday with Open Interest in Index Futures increasing by 22916 so FII have created long in Nifty and Bank Nifty future . As discussed in Weekly analysis , Sensex is still holding the 8 month old trendline so FII playing for bounceback from oversold levels ?

3. NS closed at 5898 after  making high...

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Short term technical Calls:SBI,TCS and IVRCL

SBI

SBI has been falling relentlessly from 2535 till 2276, As discussed on 29 Jan unable to cross 2550 SBI can start short term decline, Stock took support at 2420 levels for 3 days as soon as closed below 2420 downside breakout happened with a quick decline till  2276.  SBI is now at important support of 100 DMA @2290. As seen in past stock consolidates near 100 DMA for 2-3 trading sessions and ultimately show a move up. Will it be 3 time lucky?

Buy above 2302 Tgt...

 

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Bank Nifty Weekly Analysis

Bank Nifty has been outperforming Nifty on downside also  with fall of 326 points last week.With economy slowing down Bank will be the first to bear the brunt of slow down. Next week will keep financials in focus as December IIP data on Tuesday and January wholesale price index (WPI) inflation figure on Thursday will give further clues whether RBI will go ahead with more rate cuts or keep interest on hold till inflation comes down more.

Bank Nifty Hourly

Bank Nifty has been trading in an down trending channel after breaking its.


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Nifty Index Outlook: 11-15 Feb

Bears kept ruling the Dalal Street for 2 week in row as Sensex and Nifty closed at 2013 low, with Nifty closing with cut of 1.5%, Mid Caps and Small caps got deeper cuts of 3% and 4% respectively. Economic data was not so encouraging with Goverment lowering GDP estimates and SEBI's mandated minimum public shareholding of 25 per cent for private companies and 10 per cent for state- run firms, the promoters will have to sell their extra holdings in the market which will result in additional supply of equities in the market for the next few months.
Next week again tend to be lively with  MCX-SX new Stock exchange will start trading, Headling Inflation  and IIP data will be declared.Government has announced the Budget session dates, Railway Budget on 26 Feb and Annual Budget on 28 Feb which is also expiry day. So rise in volatility should be expected as the event comes near.
Lets discuss Nifty Trading Strategy for Next week.

 Nifty Hourly Chart

Nifty is trading below 50 SMA which lies at 5975. Nifty made a brief move above..

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Do 100 Percent Accurate Trading System exists ?

During my interaction with traders during my trading course,I came to know most of traders who loose money will keep changing their trading system the day it give them a loss. Till its milking money traders stick to it, but if 2-3 trades goes wrong they will keep the trading system on back burner and start searching for new one.

This whole attitude of changing the trading system is one of the biggest mistake of traders.

Traders will search through trading forums to find the next best trading system which will help them in earning profit they seek. Trader will try the new system again for few weeks and again once the system give 1-2 loss making trades , the system will be dumped and search for "next best trading system or trading indicator" will begin and the same never ending cycle will keep going on and on.

To stop falling in trap of such vicious cycle, Trader need to let go of the thought there is a "Holy Grail" system or a fool proof trading method which will win 100% of time. "Holy Grail" system has never exited till date and it will never exit. Now when u try to explain this to trader, 50% still do not believe me.

I can sense them thinking..

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Stock trading calls:Rel Infra,Gail and Tata Global

GAIL

Gail has been trading in range of 400-335 and is near its horizontal trading channel support of 335 which it has been holding from past 10 months.Bounce back be expected if 335 is not broken on hourly basis.

Buy above 338 Tgt..

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Nifty Trading Strategy for 8 Feb based on FII F&O analysis

1. FIIs sold 3647 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 105.22 cores with net Open Interest decreasing by 2615 contracts. Trader Self-Evaluation by Van K. Tharp, Ph.D.
2. As CNX Nifty Future was down  by 12  points with Open Interest in Index Futures decreasing by 2615 FII have booked  profit  in Nifty and Bank Nifty future shorts .FII average traded Price comes to 5770 which shows they were mostly concentrated on day trading today.

3. NS closed at 5939 after opening gap down on weak global cues making high of 5979 and low of 5928.Nifty made the high near our first resistance of 5982 and low near our second support of 5930 as discussed yesterday .

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Pattern Trading:Maruti,PFC and Bata

Maruti

Maruti has been trading in an uptrending channel and has approached the higher end of channel at 1640, Stock can see a pullback if unable to do a channel Breakout.

Sell below 1624..

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Nifty Trading Strategy based on FII F&O analysis

1. FIIs sold 18902 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 563 cores with net Open Interest decreasing by 11282 contracts. Misconceptions Of Stock Trading Part -I
2. As CNX Nifty Future was down  by 1  points with Open Interest in Index Futures decreasing by 11282 FII have booked some profit  in Nifty and Bank Nifty future shorts .Nifty is lacking strength to move up above 6000 from last week as any gap up opening is meet by selling,bears overpowering the Bulls. Clients who learnt gap theory covered in our trading course must be making good money in past few days,

3. NS closed at 5959 after opening gap ...

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Stocks with Momentum:United Spirits,Jubilant Foods and Adani Ent

“Two of the cardinal sins of trading—giving losses too much rope and taking profits prematurely—are both attempts to make current positions more likely to succeed, to the severe detriment of long-term performance.” -William Eckhardt

United Spirits

United Spirits deal with diego has cleared SEBI and stock looks bullish looking at the charts once it crosses and closes above 1900.

Buy above 1900 Tgt..

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FII F&O Analysis for 6 Feb Nifty Future Trading

1. FIIs sold 22273 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 663 cores with net Open Interest increasing by 6345 contracts. Misconceptions Of Stock Trading Part -I
2. As CNX Nifty Future was down  by 21  points with Open Interest in Index Futures increasing by 6345, FII have created fresh shorts in Nifty and Bank Nifty future.Nifty Future has given 100 points profit from trend changer level.Shorts which got intitated on 1 Feb as per trend changer levels.

3. NS closed at 5957 after opening gap down on weak global cues making high of 5970 and low of 5946.Nifty made the low near our second support of 5945 As discussed yesterday Now Nifty is near 5981 which..


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Misconceptions Of Stock Trading Part -I

Today we will start discussion on widespread misconception that are floating around the trading community and gets lodged into traders minds. I have been talking to many traders every week, during our talks the misconception will finally come up. A lot of these are inaccurate and ineffective ideas,which lead traders into a cycle of bad trading habit and causes them to lose hard earned money in the markets.What worse is many of these self defeating belief can be found on many trading sites and blue channels which make a trader believe on these misconception.
Lets discuses the  most erroneous trading belief many trader posses and hopefully after reading the lesson will be able to think differently.

1. Let your Winners run and Cut your losses.

We are hear, read old adage "Ride on Winners and cut down your losses" . The same can be found on any trading website you come across or any Business news channel. But this is very subjective term and need further analysis on What this means and How a trader can implement the same.
Majority  traders will exit in small profits and run on their losers, If you do not agree..

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FII F&O Analysis for 5 Feb Nifty Future Trading

1. FIIs sold 23754 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 710.33 cores with net Open Interest increasing by 39348 contracts. Are you Trading for a Living?
2. As CNX Nifty Future was down  by 40  points with Open Interest in Index Futures increasing by 39348, FII have created fresh shorts in Nifty and Bank Nifty future.Nifty Future reacted from our Trend Changer levels of 6063  which was today's high fall down sharply and closed at 5996.Hope traders were able to mint profit.

3. NS closed at 5987 after making high of 6039 and low of 5981.As discussed yesterday positive divergence in Hourly charts helped nifty to open gap up aided by global markets, but after opening Higher time..


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Trading for a Living

How to make money trading stocks/Commodities

(a) Identify the reason for the trade
(b) A Stop Loss
(c) A profit target or trailing stop mechanism
(d) The point at which you accept that the trade is not working even if the stop did not hit.
(e) Number of shares / contracts that you will hold. Keep in mind that your loss on a single trade should not be more than x% of your capital (you decide the x%)
(f) maintain a trading journal in which you write every evening, without fail.

As a sportsman(So too as a trader), you've got to realize that it's not the end of the world if you lose one game or more..You should get down to basics and play every point on its merit. The moment you sit down to differentiate the first point from the last, emotions take over. Now, that needs to be..

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Intraday Swing Trading Calls: ICICI Bank,JP Associate and Hindalco

ICICI Bank

ICICI Bank we had discussed few days before pulled back from the resistance of 1232 and is back to 1167 which is a trendline support.Holding the low of 1167 bounce back can be expected.

Buy above 1180 Tgt...

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Nifty Future Trading levels for 3 Feb

1. FIIs sold 3214 Contracts of Index Future (NSE Nifty Futures and Bank Nifty Futures combined),worth 99 cores with net Open Interest decreasing by 1810 contracts. Importance of Effective Trading Plan in trading profitably

2. As CNX Nifty Future was down  by 31  points with Open Interest in Index Futures decreasing by 1810, FII hve booked profit again in longs. No major shorting seen by FII, as discussed in weekly analysis 5984 is important support.

3. NS closed at 5998 after making high ..

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Nifty Weekly Outlook for 04-08 Feb

RBI delivered what market was expecting cut in Repo and CRR but Nifty has been down from past 5 trading session. As the rate cut had already been factored in by the markets and profit booking followed. Many traders were surprised the way Nifty behaved, market always behave irrationally and its always better to trade as per levels. We are saying from past 2 weeks till 6100 is not broken on closing basis, Trend remains Sell on Rise and Nifty is obliging to it. Government has announced the Budget session dates, Railway Budget on 26 Feb and Annual Budget on 28 Feb which is also expiry day. So rise in volatility should be expected as the event comes near.
Lets discuss Nifty Trading Strategy for Next week.

 Nifty Hourly Chart

Nifty is trading below 50 SMA which lies at 6052.

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What is Swing trading technique?

"Trend is Your Friend" , "Never Challenge the Trend" are true market adage and doctrine for traders. But when one looks at History of Financial market be it be stocks,commodity or Foex , Market does 80% of move in 20% of time   and remaining 80% of time they are in non-trending, or "sideways" fashion. So how do a trader can trade in such sideways market. There are many methods to trade non-trending markets,one of the well known well trusted method is "Swing Trading"

The basic principle for swing trading is finding a stock/commodity  that is

• trapped in a very tight trading range

• in an up-trending..

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Top Ten trading Losses in History of Financial Market

#10 Under the leadership of CEO Heinz Schimmelbusch, German metals and engineering giant Metallgellschaft was on the brink of bankruptcy after losing $1.3 billion on speculative bets.  The firm bet on an increase in oil prices in oil futures markets, but oil prices dropped instead. Full Article
#9 Robert Citron lost $1.7 billion for Orange County, California forcing it into Chapter 9 bankruptcy.In 1994, Citron was Treasurer-Tax Collector for Orange County, California. As treasurer, Citron used a series of highly-leveraged deals that included repurchase agreements and floating rate notes.  Full Article
#8 Although much success within the financial markets arises from immediate-short term turbulence, and the ability of fund managers to identify informational asymmetries, factors giving rise to the downfall of the fund were established prior to the 1997 East Asian financial crisis. In May and June 1998 returns from the fund were -6.42% and -10.14% respectively, reducing LTCM’s capital by $461 million. This was further aggravated by the exit of Salomon Brothers from the arbitrage business in July 1998. Such losses were accentuated through the Russian financial crises in August and September 1998, when the Russian Government defaulted on their government bonds. Panicked investors sold Japanese and European bonds to buy U.S. treasury bonds. The profits that were supposed to occur as the value of these bonds converged became huge losses as the value of the bonds diverged. By the end of August, the fund had lost $1.85 billion in capital.
As a result of these losses, LTCM had to liquidate a number of its positions at a highly unfavorable ..

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