INTELLECTUAL TRADING

The stock market is an integral part of the economy and doesn’t function in isolation. It is the barometer of a nation’s economic growth and reflects various key Factors such as interest rates, GDP rates, trade policy, and currency movements. Out of these the strengthening and weakening of the Indian rupee have a major influence in the sectors of the economy. Data reveals that over the past decade, the Sensex/Nifty50 and the Rupee-Dollar exchange rate movement have shown a strong correlation. That too a positive one. This is also the case with various sectoral indices at both NSE and BSE.   It is said that 44% of the ups and downs in Sensex have been in tandem with the movements of the Indian Rupees.   %What factors affect Indian rupee?   Some of the factors that impact the Indian stock market are the same as those that impact the Indian currency. These are the overall global economy and geopolitical developments. Along with it, trade deficit/surplus, mone...

  An inside bar pattern doesn’t come around often. If you ask, why is it? So the answer is, it’s mostly due to the fact that this particular strategy requires a trend that is strong but not exhausted. As markets spend most of their time consolidating or ranging, so finding a favorable inside bar  setup within a trending market can be a difficult task. Now, you might be having a question  that what is inside the bar chart pattern? What is Inside Bar Pattern? As the name suggests, an inside bar chart pattern engulf inside of a large candle, some call it  as a mother bar. It’s a pattern that forms after a large move in the market and represents a  period of consolidation. The inside bar pattern can be a very powerful price action signal if you understand how to  trade it properly. Matching lows and highs are acceptable, however the inside bars range  must not be outside of the mother candle by even 1 point. Facts about Inside Bar Pattern Inside bar patter...

  Mutual funds have been net sellers on most days in Jan-21, except for the last few days when FPIs had turned net sellers and domestic funds supported the markets ahead of the Union Budget.      Indian mutual funds have been on the defensive on most days when it comes to flows into equities. Just steal a quick glance at the numbers to understand that! In last few months, mutual funds have been net sellers on more than 90% of the days even as foreign portfolio investors were buying. Check the chart below on MF flows into equities in Jan-21. Data Source: NSDL Mutual funds have been net sellers on most days in Jan-21, except for the last few days when FPIs had turned net sellers and domestic funds supported the markets ahead of the Union Budget. However, the net outflow of Rs12,980cr in equities in Jan-21 only tells you part of the story. The bigger story has been one of heavy churning in equities by mutual funds. That is obvious when you consider that domestic funds b...

  As you know, there is a marketplace for everything that we want to trade: a vegetable market where you can buy fruits and veggies, a gold showroom that sells ornaments, coins, and other items made of the yellow metal, and so on. Likewise, there is a regulated marketplace called a ‘stock exchange’ where you can trade listed-financial instruments such as: Stocks Commodities Bonds Derivatives Currencies Futures & Options The main objective of a stock exchange is to ensure that the companies and clearing members abide by the rules and regulations of the exchange and also that trading happens in a legitimate manner. Over-the-counter (OTC) market Financial instruments that are not listed and do not meet the requirements of a stock exchange are traded on an over-the-counter (OTC) market. Compared to a stock exchange, an OTC is less formal and regulated. Stocks traded here belong to smaller and riskier entities. BSE and NSE Coming back to stock exchanges, India has 23 in all, out of ...