Trading Yoga

Market Aug 31 All is well that ends well. The bulls successfully regained 9900 to close at 9917.90.  As mentioned in my blog yesterday ,  the options data indicated a fight for 9900. And the morning session was dominated by the bears and the afternoon session the bulls slowly crept up from behind and finally raced to the finish line. This was a psychological victory. See the hourly chart which shows the domination of the bears and the bulls. For the rally to continue, we need to see follow on bullish sentiment tomorrow and early part of next week. A breaking of the previous high would be excellent to signal a breakout buy. However, the proof has to be in the funds flowing into key stocks that comprises of the various indices. Enough of wishful thinking and back to the statistics, the broadbased indices closed in green except for the Nifty Next 50 which fell by 0.04% indicating a positive sentiment across the market. The sentiments on the various sectors were generally bull

Market Aug The market regained much of the lost ground in today's trading session as the stress related to the geo-political issues evaporated. Nifty gained 88 points to close at 9884.40. It is now trading above all key moving averages other than the 20 day simple moving average which stands at 9900. The market breadth was very positive with an advance decline ratio of 3:1 and all broad based indices closed in the green. The sectoral indices were also positive except for IT which marginally fell by 0.12% pulled down by MindTree, Tech Mahindra and OFSS being top losers. India Vix and Derivatives Data for Aug The overall options data is poised in a very neutral stance with the PCR ratio of 1.01. If we assume a certain level of Puts as hedge position, we may consider the ratio to have a bullish bias. The 9800 and 9900 calls saw high level of OI Change with long unwinding taking place at these strikes. The 9900 and 9850 puts saw short build up indicating high pitched battl

Market Aug 29th The market gave back most of the gains from recent sessions as it lost 116 points in the day's trading. It reached a low of  9783 and recovered to close at 9796, marginally below the psychological level of 9800.  The sentiment is more defensive rather than bearish. At such times, it is believed that the money flows out of stocks to safer havens such as gold. Incidentally as I write, Gold has rallied 0.75% today in the international market. And the fall in the Nifty is 1.18%. Such geo-political news triggers sell orders from Institutions, who generally take a conservative view and hedge their overall position across countries, markets and currencies to safer avenues or cash. How long the uncertainty will last will depend on the geo political noise. If it calms down quickly, then the buying will resume. If the geo political noise continues, then Bears may use the opportunity to push for a correction. A break of 9680 which is seen as a significant support as th

Market 28th Aug Nifty seems back on its feet, with the close at 9912 above all the key EMAs, on the daily chart. The weekly chart has been showing strong bullish momentum throughout the year.  The Broad Market Indices were all green today and the Sectoral indices closed in green except for PSU banks which was in the red by 0.10%. The broad market Advance decline ratio was a favourable 2:1.The small and mid cap indices outperformed the Nifty in today's trading. Pharma, FMCG, IT and Media contributed to the bullishness as these indices lead the way.  India Vix and Derivatives Data for Aug 28th The India Vix closed below the key short term EMAs of 5, 10 and 20 EMA on the daily charts, indicating bullishness in the short run.  The overall PCR for Nifty Aug Series was 1.05 indicating mildly bullish stance. 9800 is seen as a strong support and 10000 a strong resistance for this series. I have been trying to get some additional perspective based on the OI Change

Stock Market: A misunderstood market. Stock Market Investments used to be like buying a lottery ticket. Your profits would be determined by who you know and which "tip" you acted on. A few scams later, with the technology aided transaparency, stricter monitoring and better laws Stock Market investing is now a more systematic way to grow your money.   Stock Market Investing is becoming an Popular Profession It is indeed a trend world over that more and more people are moving to Stock market trading and investing on a full time basis . And here is why : Low Cost Aided by technology, the set up costs are affordable and all one needs is a laptop (or desktop) with a desk. You can start with any amount of capital and then grow it from there.  Flexibility You can work from anywhere ... from home, from a co-working space or your own private office You can be at it full time, part time or during weekends or after office hours. Yes you can do even duing the commu

NIFTY ON A DAILY RENKO CHART The regular candle stick chart can be quite daunting in a choppy market. It could give mixed signals to the untrained eye. That is where the Renko charts come in handy. The Renko charts track the price movements and we can almost say, ignores the time element. On the chart below on the left is the normal candle stick chart and on the right is the renko chart. Despite all the up and down of the market, a trend follower who used the renko system (with the settings I have used) would have been long in the market from 8200levels. And using two bricks to exit, would have exited during the recent fall with a neat gain of 1500 to1600 points. BRICK SIZE IS KEY IN RENKO. The brick size plays a big role in Renko systems. Using a fixed brick size would give a very different chart when compared to a dynamic brick size based on ATR. I have used a shorter ATR period for quicker signals, however if one were to use the regular 14 period ATR, the last brick w