Month: December 2019

Is State Bank of India ( NSE: SBIN) a good buy? Daily nifty Analysis 30.12.2019

The share market seems to be at zones that people consider too risky or too expensive to enter and with NIFTY 50 hovering near it’s all time high of 12,287.15 avid investors are looking for opportunities to gain from. Given below is the technical analysis of State Bank of India (abbreviated as SBI) -The SBI share price settled at 334.40 after the market session that ended on Monday.

After a reversal in trend and experiencing the beginning phase of the bullish rally, there occurred a runaway gap on 13th December, 2019. The runaway gap is acting as a crucial support and probably would not get filled. In light of a rising trend line and a decisive gap one can take initiate long positions in SBI, the entry price being 329-331.

Furthermore, Investors can target levels of 350 with a definitive stop loss of 324.

Disclaimer: We have provided this information to Traders and investors for education purposes only. It is neither a legal interpretation nor a statement of SEBI policy. Before making any investment or trading decision is it advised to consult your financial advisor.

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For all the newbies in the stock market, ISM is offering 20% on the star trader course. We wish you a very happy new year.

Happy Trading!

Satyarth Grover  

Sit tight to witness new highs in this NIFTY bull run! Weekly analysis 28.12.2019

After a truncated week Nifty was able to close on a positive note this Friday and proved the significance of resistance and support zones. In this classic live example, we have role reversal at play. Resistance has become support. A zone as narrow as only two points viz. 12157-12159 has acted in a crucial manner and we can see an accelerated trend line emerge on the NIFTY chart.

It must, however, be noted that this trend line has not been tested and shall be validated only in the near future.    For traders, who are trying to short the market based on oscillatory analysis will not prove fruitful in upcoming trading sessions. Zones to look out for would be 12290-12300. NIFTY is likely to make a new high this time and a hedged position with a bullish point of view will help in netting profits. Stop loss would be 12155. 

Disclaimer: We have provided this information to Traders and investors for education purposes only. It is neither a legal interpretation nor a statement of SEBI policy. Before making any investment or trading decision is it advised to consult your financial advisor.

Happy Trading!

Satyarth Grover

‘What is the horsepower of this auto sector share’ ? Nifty Daily Analysis -26.12.2019

After reaching an all-time high of 12,287.15, Nifty may be witnessing a slight correction and would possibly then continue its bull run. It would not be a good idea to short the market as an uptrend is still in function. According to Dow theory, “A trend is assumed to be in effect until it gives definite signals that it has reversed.”

In light of this, given below is a technical analysis of the script Mahindra and Mahindra (abbreviated as M&M). After being in a downtrend since September 2018 it reversed it’s a trend and ended the jinx in September 2019 by forming a reverse head and shoulder pattern and broke the trend line with heavy thrust.

However, after establishing a strong support zone at 500-505 (500 being a psychological level also) the stock revisited it in the first half of December 2019. The support zone was confirmed and after heavy pressure, the price has consolidated and has formed what can be called a bullish ‘pennant’.

The script closed today (i.e. Thursday) at 528.35. Longs can be initiated with a definitive stop loss of 520-521 and we may see the buyer’s pushing this stock up to levels of 555-560. The risk-reward ratio would be approximately 1:4.

Disclaimer: This post is only for educational and tutorial purposes. Please do not consider it a trading recommendation.

Happy trading,

Satyarth Grover

What happened here in this chart? Is it a Stock Crash? Payout? Read More

By looking at the chart, what seems in the first look that there has been a major crash. The portfolio is down by almost 70%.

Now, what could possibly cause this in just one day?

This usually happens when there is a crash, payout or the holdings have been converted into cash. However, this is altogether different.

As an Individual investor or a trader, this could be shocking or if not at least a little complicated at first. Let us explain, what just happened here.

Let’s simplify now, A great proportion of the fund was allocated to nifty bees. Let’s have a look at the notes.

Note:-

i.                     The Below Mutual Funds Units will be Traded with new Face Value of Re.1/- w.e.f. December 19, 2019 (DR -178/2019-2020)

ii.                    The new ISIN number as given above shall be effective for all trades done on and from the Ex-Date i.e. December 19, 2019

Let’s understand first

What are Nifty Bees?

Nifty BeES (Benchmark Exchange Traded Scheme)—the first exchange-traded fund (ETF) in India—seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. … Nifty BeES is a no-load scheme.

SCHEME NAME CODE/ Old ISIN	RECORD DATE	PURPOSE	New ISIN
NIPPON INDIA ETF GOLD BEES(Scrip Code 590095)INF732E01102	20/12/2019	Split of each unit of Rs.100/- to Re.1/-	INF204KB17I5
NIPPON INDIA ETF NIFTY BEES(Scrip Code 590103)INF732E01011	20/12/2019	Split of each unit of Rs.10/- to Re.1/-	INF204KB14I2
NIPPON INDIA ETF BANK BEES (Scrip Code 590106)INF732E01078	20/12/2019	Split of each unit of Rs.10/- to Re.1/-	INF204KB15I9
NIPPON INDIA ETF PSU BANK BEES(Scrip Code 590108)INF732E01110	20/12/2019	Split of each unit of Rs.10/- to Re.1/-	INF204KB16I7
NIPPON INDIA ETF HANG SENG BEES(Scrip Code 590113)INF732E01227	20/12/2019	Split of each unit of Rs.10/- to Re.1/-	INF204KB19I1

What is a stock split?

All publicly-traded corporations have a fixed number of stocks that are extremely good. A stock split is a decision with the aid of a company’s board of administrators to growth the variety of shares that are first rate through issuing more stocks to cutting-edge shareholders.

Why Do Stocks Split?

A stock break up is typically finished by agencies that have seen their share price boom to tiers which might be both too excessive or are past the charge tiers of similar agencies of their sector. The number one purpose is to make shares seem more affordable to small investors despite the fact that the underlying value of the enterprise has now not changed.

This has the practical effect of growing liquidity within the stock. When a stock splits, it could also bring about a share fee growth following a decrease immediately after the breakup. Since many small investors think the stock is now less costly and buy the stock, they come to be boosting demand and force up prices. Another cause for the price boom is that a stock break up gives a sign to the marketplace that the agency‘s share charge has been growing and people count on this increase will continue within the future, and again, lift call for and prices.

Are you smarter than a Monkey?

The normal hedge fund has delivered a more awful investment execution in the principal half of this current year than a portfolio comprising of a bank account at your nearby bank and an irregular assortment of stocks picked by a blindfolded monkey.

This asks the conspicuous question— for what reason would we say we are paying fund managers so much when that money ought to clearly be going monkeys?

All things considered, we should check whether some other creatures can beat the market!

The top 10% of stocks in the S&P500 contribute practically half of the general index. These enormous stocks will, in general, have returns which are far less factor or volatile than little stocks, which makes the littler stocks more dangerous. Most speculators don’t particularly prefer to have hazardous stocks, so to remunerate the financial specialists who do get them, these stocks need to offer more significant yields. This is seen experimentally, as somewhere in the range of 1980 and 2015, littler stocks returned 11.25% yearly development by and large, while enormous stocks returned 8.1.0%.

So when our creature companions pick a random portfolio, they are choosing a disproportionally high number of little stocks which helps the portfolio’s return contrasted with the S&P500, while likewise including a great deal of risk, something creatures forgot to specify. So while a random portfolio picked by a Monkey/goldfish/feline/rodent offers significant yields, its return for the degree of risk taken is probably not going to be ideal.

You can play around with simple portfolios but this will do as well as any. It’s about as simple as you can get.