Trading Basics

• The market is not physical. It’s an amalgamation of the mindset of all trading participants. The daily tug-of-war between the bulls and the bears reveals what they are thinking on a daily basis. Make sure to look at the market’s close in relation to the session high and low.

• Never buy just because the price is low, or sell just because the price is high. Never average a losing trade. Don’t become impatient with the market. Always have a good reason for initiating every trade. Remember, the markets are always right.

• Traders need to listen to the market. To listen effectively to the market, traders need to know and pay attention to their trading methods, but also pay just as much attention to themselves as they pay to their charts and the market. The trader’s challenge is this: Learn who you actually are, and then consistently and consciously develop the qualities that allow you to trade well.

As traders, the more

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HCL Tech,RIL and HUL intraday trading plan

HCL Tech

Trading near the fibo channel 1563 holds the key, Able to cross over it stock will rise towards the next target of 1597.

Buy above 1551 Tgt

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Nifty February derivative expiry Analysis

• FIIs bought 33307 contracts of Index Future worth 1047 (35365 Long contracts were  added and 2058 short contract  were added ) with net Open Interest increasing by 37423 contracts, so FII's added marginal  shorts in index future and aggressive   longs were added today also.
  

Nifty opened gap up , and quickly moved down to fill the gap took support at it 50 DMA, closed above 6200, formed a

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Nifty Weekly Forecast for Expiry Week

Last Week Chopad Level of 6077   did  triggered and Nifty almost did its 2 target on upside, Bulls were able to protect the 200 DMA on weekly basis and also closing Nifty above 6150. Next week  GDP data will be released on February 28.The stock market will remain closed on Thursday on account of Mahashivratri.

Nifty Hourly Chart

Nifty Hourly charts has closed above its

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Bank Nifty Weekly Forecast for Expiry Week

Last Weekly we gave Chopad level Bank Nifty 10221 and achieved 2 target  upside.

 Bank Nifty Hourly

Bank Nifty hourly charts is trading above  its 200HSMA@10485 ,Closing above 10630bounceback can be seen till 10800-10900.

Bank Nifty Daily

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Understanding Open Interest in Options

Many traders have been asking me question on my write up of FII Data analysis, Keeping all the question in mind i have prepared a cheat sheet which will help you in understanding my data analysis with more clarity.
1. What do you mean by Open Interest (OI) in futures and options? 
When there is trade between a buyer and seller, a contract opens and all such open contracts are together called as open interest. So if Trader A have bought 1 lot of Nifty Futures  expecting it to go up and Trader B have sold 1 lot expecting it to go down, that makes it 1 open contract and hence the open interest of 1.
2. How would you read  when I write  “Nifty futures went down with a huge addition of OI?” 
OI will go up when more people start participating or existing people start adding positions. According to the OI theory, typically when a market is going in

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The importance of doing "No Trade"

Australian cricketer-turned-commentator Dean Jones, in an interview for Wisden, observed that two-thirds of Sachin Tendulkar’s game is based around defence. Most of the shots in any Sachin century, he says, are based on forward defence, back-foot defence and letting the ball go. As any coach would vouch, letting the ball go is possibly as important as hitting good shots in the career of a batsman.

With analogies from the world of sports, we discuss why “doing nothing” is just as important a strategy in the world of trading as action.
In the trading there are huge incentives to make correct decisions. Trading can be simple or complex based on the trading strategy you want to follow. After the 2008 financial crises modern information economy is constantly throwing out gigabytes of data, coaxing the receiver of this information to react. The institutional imperative for professional trader as recipients of the information stimuli is typically to react by trading in the markets. You have emerging country crisis, Fed Tapering China data to digest all ..

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Highlights: India's 2014-15 Interim Budget

FISCAL DEFICIT: Fiscal deficit seen at 4.6 per cent of GDP in 2013/14
CURRENT ACCOUNT DEFICIT: Current account deficit seen at $45 billion
MERCHANDISE EXPORTS: Exports seen at $326 billion in 2013/14 up 6.3 per cent year on year
AGRICULTURE EXPORTS: Expected to touch $45 billion in 2013/14 up from $41 billion in 2012/13
SPENDING: Plan expenditure for 2014/15 seen at same level
Aiming at Fiscal deficit.

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Nifty Weekly Technical forecast for Vote-on-Account week

Last Week Chopad Level of 6102   did  triggered and Nifty almost did its 2 target on downside, Bulls were able to protect the 200 DMA on weekly basis and also closing Nifty above 6000. Next week Vote-on-Account, or interim budget for 2014-2015, which the government will unveil during trading hours on Monday, 17 February 2014, will set the tone for the Nifty in coming  week.

Nifty Hourly Chart

Nifty Hourly charts  has taken resistance at its 50 DSMA, and sustaining above it, bulls will have upper hand. 6110-6120 is the range which will decide the further trend of market.

Nifty Daily Chart

Nifty is still trading in the range of

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Bank Nifty Weekly Forecast for Vote-on-Account week

Last Weekly we gave Chopad level Bank Nifty 10321 and achieved 1 target  downside levels.Bank Nifty has been trading in small range since  last 2 week, coming week is So Bank Nifty will show good technical move in coming week.Vote-on-Account, or interim budget for 2014-2015, which the government will unveil during trading hours on Monday, 17 February 2014, will set the tone for the Bank Nifty in coming  week.

 Bank Nifty Hourly

Bank Nifty hourly charts is trading below its 50HSMA@10240 ,Closing above 10240 strong bounceback can be seen till 10500-10600, Unable to close above

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How to build a trading plan?

How do you go about building a trading plan?  What do you need to consider, and what type of trader should you be? The last question is a logical place to start – deciding the type of trader you want to be, and understanding why.
Type of Trader
When creating a trading plan, a trader must decide the style of trading they will adopt. There are typically four types of traders in the market:
- Scalper (very short term)

tend to stay within boundaries of 1 minutes to 15 minutes time frame

-    Intraday Trader (short term)

tend to range from 5 minutes to 1 hour time frame

-    Swing Trader  (medium term)
will consider


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Nifty forms piercing pattern, FII data Analysis

• FIIs sold 3542 contracts of Index Future worth 114 (1592 Long contracts were squared off and 1950 short contract  were added ) with net Open Interest increasing by 358 contracts, so FII's added shorts in index future before vote of account.
  

Yesterday we had discussion  Nifty is entering now in demand zone of 5970-5950 which if held we can see a bounce back. Market is trading in range of 6100-5950.  Market reacted very fast as soon as it entered the range and closed at 6048. We have vote on account on Monday which will

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RIL,M&M and HUL trading strategy

Reliance Industries

RIL todays fall was not backed by volumes, stock has entered a demand zone, Holding the range of 798-800 levels stock could bounce back to 833 levels.

Buy above 811 Tgt..

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Nifty continues its consolidation,Trending move on cards?

• FIIs sold 17471 contracts of Index Future worth 534 (1595 Long contracts were squared off and 15876 short contract  were added ) with net Open Interest increasing by 14281 contracts, so FII's squared off  longs and shorts were added today with nifty trading in small range.
  

Nifty was able to protect its 6050  for third day running but nifty is resisting at the upper end of rising trendline. Nifty after forming multiple hammer pattern,

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Janet Yellen: Fed To Stay The Course On Taper

Janet Yellen, in her first speech as new Fed chair "stayed the course" on the Taper:

• *YELLEN SAYS FOMC LIKELY TO CONTINUE QE TAPER IN MEASURED STEPS
• *YELLEN SAYS RECOVERY IN LABOR MARKET IS `FAR FROM COMPLETE'
• *YELLEN SAY FED TO `CONTINUE TO MONITOR FOR EMERGING RISKS'
• *YELLEN: MAIN RATE LIKELY TO BE LOW WELL PAST 6.5% JOBLESS RATE

Of course, the Q&A (and hawkish follow-up panel) may well be the "common knowledge" setting moment for today but for now, the Taper is on and forward-guidance
On Growth...
*YELLEN PREDICTS MODERATE GROWTH IN ECONOMY, JOBS IN 2014, 2015
*YELLEN SAYS ECONOMY GAINED

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Nifty consolidates in small range, How to trade now ?

• FIIs bought 1539 contracts of Index Future worth 53 (1998 Long contracts were squared off and 3537 short contract  were squared off ) with net Open Interest decreasing by 5535 contracts, so FII's squared off  longs and shorts today in choppy session of trade.
  

Nifty was able to protect its 6050  for second  day running forming higher highs and higher lows , nifty is resisting at the upper end of rising trendline. Nifty after forming multiple

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Nifty Weekly Technical forecast for 10-14 Feb

Last Week Chopad Level of 6102    did not got triggered as Nifty opened gap down, Bulls were able to protect the 200 DMA on weekly basis and also closing Nifty above 6000. Next week will be very busy, and the scheduled events should contribute to the already growing market volatility.

IIP for December on Wednesday, CPI for January on Wednesday and WPI for January on Friday.

Janet Yellen will testify on the semi-annual monetary policy report in front of the House Financial Services Committee,on Tuesday will give more Hint on fed tapering.ECB President Mario Draghi’s will be addressing a conference on Wednesday and China trade balance data on Wednesday.

Nifty Hourly Chart

Nifty Hourly charts  has taken support above its

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Bank Nifty Weekly Forecast for 10-14 Feb

Last Weekly we gave Chopad level Bank Nifty 10256 and achieved 1 target  downside levels.Bank Nifty has been trading in small range in last week, Coming week is data heavy week with both CPI,WPI and IIP data coming. So Bank Nifty will show good technical move in coming week.

 Bank Nifty Hourly

Bank Nifty hourly charts is trading above its 50HSMA

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Global Market Correction Over Or Just Starting

Over the last year, investors have been lulled to sleep wrapped in the warmth of complacency as the Federal Reserve stoked the fires of the market with $85 billion a month in liquidity injections. As discussed  investors were likely to be rudely awakened by an unexpected event of which was likely not even on the majority of mainstream analysts radars.  That occurred this past week as a revulsion in emerging markets sent the "carry trade" running in reverse.
"Hedge funds have been borrowing money in Japan (again) at very low Japanese interest rates, obviously denominated in yen. They then convert those yen to, say, the Brazilian real, Argentine peso, Turkish lira, etc. and buy Brazilian bonds or Turkish bonds using 10:1+ leverage. Accordingly, when such countries jacked up interest rates overnight, their bond markets collapsed. Concurrently, their currencies swooned, causing the 'hot money' investors to not only lose on their leveraged bond positions,

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Can You Really Make A Living out of Trading?

Aspiring traders often ask me whether or not it’s really possible to make a living trading the  market.
The short answer is yes.
The longer answer is, yes you can make a living trading the  market but you have to consistently do a lot of things right. Most traders simply do not yet possess the necessary trading skill, discipline, patience, or realistic attitude to succeed long-term in the markets.
However, this does not mean that it is impossible. You simply have to learn what you need to do to become a consistently profitable trader, and then do it. Easier said than done, I know. So let me give you some valuable insight into what it takes to be able to trade  for a living.
How much money do you need to

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Basket Selling in NF, How to trade now ?

• FIIs sold 8186 contracts of Index Future worth 247 (4249 Long contracts were squared off and 3937 short contract  were added) with net Open Interest decreasing by 312 contracts, so FII's squared off  longs and shorts were added by them.
  

Nifty was able to protect its 200 DMA, for third day running.Nifty has formed a hammer candlestick pattern today also along with a double bottom pattern, Today panic fall has panicked many traders "850,000 Nifty futures were..

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Auro Pharma,BoB and Airtel Trading strategy

Bank of Baroda

Positional traders should look for close above 555 for target of 576 and 589.

Buy above 548 Tgt

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FII F&O Data Analysis for 06 Feb

• FIIs sold 14729 contracts of Index Future worth 446(711 Long contracts were squared off and 14018 short contract  were added) with net Open Interest increasing by 13307 contracts, so FII's squared off  longs and huge shorts were added by them.
  

Nifty was able to protect its 200 DMA, for second day running.Nifty has formed a

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Nifty Weekly Technical forecast

Last Week Chopad Level of 6207 got triggered on Monday with gap down  and achieved almost 3 target on downside.Nifty corrected 328 points,in just six trading sessions as Both Fed and RBI governor disappointed market. Next week will be very busy, and the scheduled events should contribute to the already growing market volatility. ECB Rate decision on Thursday and On Friday, the January nonfarm payroll report is scheduled to be released which will be closely watched as it will give further idea on Fed taper.

Nifty Hourly Chart

Nifty Hourly charts  has broken below its ..

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