Bank Nifty hits an all-time high of 48,812 but with nearly an open=high, a structure which doesn't excite bulls.

The horizontal trendline and rising channel indicate the range of 48,900-48,400 to be the trend decider.

Stock list 6th April 2024

@PRANAV GULABANI Yes

RBL Bank - 224 to 250+

Stock list 30th March 2023

Pattern negates below 1,475

Stock list 23rd March 2024

Hey everyone, as you have probably seen, I recently covered the concept of Moving Average channels in my latest video (Click here for Video).

I wanted to open up this discussion to our FORUM users, inviting any questions or doubts you might have about the topic.

Feel free to ask away, and I'll do my best to provide clear explanations and solutions to any queries you may have. Post your queries in the comment below.

*Please read the questions and answer before posting as the same question may be answered in the discussion.

Watch this video to understand the concept of Moving Average Channel https://www.youtube.com/watch?v=DkjxwHt3xlA

RBL Bank Updated Chart - 224 to 237

Move SL @ 222 (CB)

Superb follow-through after Fed...Expecting $2285-2360 this year.

Stock List 16th March 2024

@ASHISH MAURYA Great!

Pattern Negates Below 215 (CMP-224)

@Bharat Bhatia Course on its way

Patterns negates below 21,850

@Ravi Shinde Yes

@Deepakk Chabria Hi sir,
Here is the link for Stochastic
https://youtu.be/q-iyx3coreg?si=FPUhfTZ39eKtBl3a

Large caps appear poised to take the spotlight as indicators suggest a shift in market dynamics.

The ratio charts of NiftyMidcap/Nifty500 and NiftyMidcap/Nifty50 are showing signs of exhaustion, with their slopes turning southward.

Relative Strength Index (RSI) further corroborates this trend, signaling a breakdown in midcap strength against both the Nifty500 and Nifty50.

These chart setups highlights that large caps are gearing up to seize the opportunity, as if proclaiming, "Apna Time Aayega."

The Nifty IT Index is showing strong signs of a bullish trend as indicated by the formation of a Bullish Piercing Candlestick pattern within the demand zone.

The stochastic indicator has given a bullish crossover, further supporting the notion that bullish momentum may take the lead in the near future. These technical indicators collectively point towards a favorable outlook for the Nifty IT Index, suggesting potential opportunities for investors to capitalize on the upward movement in the market.

Stock List 9th March 2024

The market is at an all-time high, and investors are understandably confused about where to put their money.
If you've been following the "Laidback" strategy, congratulations! This is the market phase exactly when it shines.

For the past few months, I have been exploring the DONSHI strategy, which shares similarities with Laidback but utilizes a combination of two indicators to define the entries.

Let's understand how DONSHI can help you trade and invest in these high markets.

DONSHI: A Blend of Donchian Channels and RSI

DONSHI combines two popular technical indicators: the Donchian Channel and the Relative Strength Index (RSI).

Donchian Channel (DC): This indicator creates a dynamic upper, middle and lower band based on the recent highs and lows in price.

Relative Strength Index (RSI): The RSI measures the momentum of price movements, indicating potential buying and selling opportunities.

Entering and Exiting the Market with DONSHI

The DONSHI strategy employs these indicators to determine entry and exit points:

Entry: Buy when the price closes above the middle line of the DC (20), and the RSI (14) should be above 60. This confluence of signals suggests a potential uptrend with strong momentum.

Exit: Sell when the price hits the lower line of the DC (20).

Using DONSHI with RZONE
You have an advantage if you're a Definedge Securities client using RZONE! I've already published the DONSHI strategy in the Public System Builder, making it readily available for you to implement.

I have recorded a video on this setup with back-testing results on various sectors and stocks. Click here to watch the video

UPDATED CHART: Nifty FMCG Index with 50DEMA and 200DEMA

In stock market trading, there's a perpetual quest for efficiency, accuracy, and profitability. Among traders, there's a prevailing debate between being a systematic trader versus a discretionary one. The former relies on predefined rules and algorithms to execute trades, while the latter depends on human intuition and judgment. In recent years, trader's interest in systematic trading has increased, driven by technological advancements and access to sophisticated tools and platforms.

A common sight in the trading community is traders spending countless hours crafting scripts and algorithms to automate their trading strategies. These scripts often involve complex combinations of technical indicators, statistical models, and machine learning algorithms aimed at generating profitable trades.

Last evening, I went for dinner with a friend who connected with me on Twitter. He is also a trader engrossed in developing a script based on the Relative Strength Index (RSI) and Bollinger Bands. He had devoted five months to refining his system, tweaking parameters and fine-tuning the code to achieve optimal results.

However, amidst the fervour of script writing and system development, it's crucial to recognise the limitations inherent in this approach. No matter how diligently one fine-tunes a trading system, there's always an element of uncertainty and unpredictability in the markets that cannot be fully accounted for.

During a dinner conversation with him, I demonstrated an alternative approach to systematic trading that challenged his conventional mindset. Leveraging the tools and resources provided by Defiendge Securities, I swiftly recreated his trading system using the RZone platform. We replicated his strategy with just a few clicks and conducted backtesting to assess its performance. The results showed the power and efficiency of sophisticated trading platforms.

Although we achieved impressive results in backtesting, I advised him to conduct front testing with the data to validate the system's performance in real-time or simulated real-time market conditions.

In addition to backtesting, front testing is a crucial step in evaluating the effectiveness of system trading strategies. While backtesting involves analyzing historical data to assess how a trading system would have performed in the past, front testing allows traders to observe how the system performs in real-time or simulated real-time market conditions. Front testing also enables traders to identify any discrepancies between backtested results and actual real-time performance, allowing adjustments and refinements before committing capital to live trading. By incorporating front testing into the evaluation process, traders can enhance the robustness and reliability of their trading systems, ultimately increasing their chances of success.

It's 1 am, and our discussion deep-dived into systematic trading, exploring the trade-offs between DIY scripting and leveraging existing tools and technologies. While there's merit in customising trading systems to suit individual preferences and trading styles, there's also value in embracing pre-existing solutions that offer robust features and functionalities. As the night wore on, the trader realised that sometimes, the most prudent decision is to leverage the right tools rather than reinvent the wheel.

The key takeaway from our discussion is the importance of exploring the myriad tools and resources available for systematic trading. Whether utilising advanced trading platforms like RZone or accessing comprehensive guides and tutorials, traders can enhance their efficiency and effectiveness by leveraging existing solutions. While there's no one-size-fits-all approach to trading, being open-minded and adaptive to new technologies and methodologies can significantly elevate one's trading prowess.

In conclusion, while you can script the system, you cannot script a trade with absolute certainty. The uncertain nature of stock markets demands a flexible and adaptive approach to trading. By embracing the tools and technologies available, traders need to trade with confidence and agility. Whether you're a veteran or a novice trader, the key to the success of a trading system lies in continuously refining your strategies, leveraging available resources, and staying ahead of the curve in systematic trading.

@Brijesh Bhatia Pattern Negated.

The setup negates below 46,333

Stock List 24th Feb 2024

As highlighted in the weekly newsletter a couple of weeks ago, according to Seasonality Analysis, February historically records the worst monthly performance for this sector. However, this dip typically signifies a bottoming-out process, setting the stage for a potential upward trend.

The chart for Nifty FMCG indicates a falling channel pattern, but signs are pointing towards an imminent breakout, particularly in the 54,300-54,400 zone. The sector presents lucrative opportunities in the near future.

Stock List 17th Feb 2024

The Nifty Equal Weighted Index has surged past its previous range and reached an all-time high.

Will the Nifty50 follow suit?

An adroit trader manoeuvres through the intricate stock markets with exceptional expertise and finesse.

The term "adroit" implies high competence, agility, and cleverness in executing trading strategies effectively. An adroit trader demonstrates keen analytical abilities, adept risk management practices, and the capacity to adapt swiftly to changing market conditions. With a combination of strategic thinking, discipline, and emotional control, adroit traders consistently seek opportunities to capitalise on market movements while minimising risks.

In essence, an adroit trader is knowledgeable about the intricacies of trading and demonstrates the agility and finesse required to excel in trading

Here are some adroit traits of a trader:

1. Analytical Mindset: A skilled trader can analyse market trends, financial data, and news to make informed decisions.

2. Adaptability: Successful traders can swiftly adjust their strategies in response to changing market conditions, ensuring they stay ahead of the curve.

3. Discipline: Discipline is essential for sticking to trading plans, executing trades without emotion, and maintaining consistency in approach.

4. Patience: Patient traders understand that success in trading often requires waiting for the right opportunities and not succumbing to impulsive actions.

5. Emotional Control: Mastering emotions such as fear and greed is vital for making rational decisions and avoiding impulsive trading mistakes.

6. Continuous Learning: Adroit traders never stop learning. They stay updated on market developments, explore new strategies, and refine their skills to stay competitive.

7. Strategic Thinking: Successful traders think strategically, setting clear goals and developing well-thought-out plans to achieve them.

8. Confidence: Confidence in one's abilities and decisions is essential for navigating the market's uncertainties with conviction.

9. Resilience: Trading can be challenging, and adept traders demonstrate resilience by bouncing back from losses, learning from setbacks, and persisting in their pursuit of success.

In conclusion, being an adroit trader encompasses a combination of key traits and skills that enable individuals to make profitable journeys in the trading arena. By sharpening the above traits, traders can strive to embody the qualities of adroitness, ultimately enhancing their performance and prospects of building wealth.

Planning to invest in Mutual Fund?

Watch this video before investing.

https://youtu.be/zlSBJIM6nG8?si=bAh9e7hIKgL2UydD

Happy Valentine's Day Dosto 🥰

As a family of traders here at the forum, I Wish A Happy Valentine's Day to every member of our forum.

As Cupid's arrows pierce hearts worldwide, traders, too, find themselves navigating the markets with a unique lens on Valentine's Day. While the traditional festivities may seem a world apart from the trading floor, parallels can be drawn between matters of the heart and trading in stock markets. Here's a trader's take on Valentine's Day:

1. Timing is Everything:
In both love and trading, timing plays a critical role. Traders closely monitor market movements, identifying optimal entry and exit points to capitalise on opportunities. Similarly, in matters of the heart, seizing the right moment can make all the difference between success and missed connections.

2. Emotional Resilience:
Emotions run high in both trading and matters of love. Traders must maintain a level head in market fluctuations, avoiding impulsive decisions driven by fear or greed. Similarly, in relationships, emotional resilience is crucial to weathering challenges and nurturing long-term bonds.

3. Adaptability:
Flexibility is a trait shared by successful traders and partners alike. Just as traders adjust their strategies in response to changing market conditions, individuals in relationships must adapt to the evolving needs and dynamics of their partners.

4. Long-Term Vision:
Both trading and relationships require a long-term perspective. Traders focus on building sustainable growth over time, while couples invest in nurturing their bond for a fulfilling future together. Patience, commitment, and perseverance are essential virtues on both fronts.

5. Finding Balance:
Achieving a balance between work and personal life is a common challenge for traders and professionals. Just as traders strive to maintain a healthy work-life balance, individuals in relationships must prioritise quality time with their loved ones amidst the demands of daily life.

6. Celebrating Successes:
In trading, as in life, it's important to celebrate achievements along the way. Whether hitting a profit target or reaching a relationship milestone, acknowledging and commemorating successes fosters a sense of fulfilment and motivation to strive for excellence.

While the trading world may seem far removed from the sentimentality of Valentine's Day, the underlying principles of timing the markets, emotional resilience, adaptability, long-term vision, balance, and celebrating successes resonate in both domains. So, as traders navigate the markets with precision and poise, they can also appreciate the nuances of love and relationships, recognising that, in matters of the heart, as in the markets, a strategic approach yields the most significant rewards.

@L M You can use vertical counts or trailing methods.

@Aditya Sarowgi There is no Unusual Options Activity in GMR

ApolloHsp 6750CE @ 155 SL 120

(From Left) 1. 6750CE 1Min 6750CE Chart,
2. Apollo Hsp Futures Chart
3. ApolloHsp Cash Chart with Volumes

Unusual Options Activity

Strategy Video - https://www.youtube.com/watch?v=0pWqZcI_kMc&t=37s

The technical analysis arena often buzzes with terms that capture the imagination of traders and analysts alike. Among these, "multi-timeframe analysis" (MTFA) is a captivating concept that intrigues and debates.

Traders often find themselves drawn to examining price movements across different timeframes, believing it is key to unlocking deeper insights into market dynamics.

The allure of MTFA lies in its potential to provide a more comprehensive understanding of trends and price action. Yet, as with any methodology, the question lingers: Is it necessary or merely a buzzword echoing through the trading community?

In this article, we unfold the essence of multi-timeframe analysis, examining its relevance and assessing whether it lives up to the fascination it commands among technical analysts.

Multi-Time Frame Analysis (MTFA) involves studying price action across different time frames to understand market dynamics comprehensively. It facilitates applying a top-down approach in technical analysis, allowing analysts to navigate from higher time frames to the most suitable lower time frame for their analysis.

Let’s explore the pros and cons of multi-timeframe analysis and why it has become an indispensable tool for traders worldwide.

Pros

1. Comprehensive Market Perspective: MTFA allows traders to view the market differently. By analysing multiple time frames, from shorter intraday periods to longer-term trends, traders gain a more comprehensive perspective on the overall market condition.

2. Enhanced Trend Identification: One of the primary benefits of MTFA is its ability to identify trends across various time frames. Short-term fluctuations may obscure the broader trend, but traders can confirm the prevailing market direction by assessing higher time frames and making more informed decisions.

3. Improved Entry and Exit Points: Multi-time frame analysis aids in pinpointing optimal entry and exit points. Traders can use shorter time frames for precision in timing their trades, while more extended time frames help confirm the overall trend's viability.

4. Reduced Noise and False Signals: Short-term price fluctuations, or 'market noise,' can mislead traders. MTFA helps filter out such noise by relying on the consensus of multiple time frames, reducing the likelihood of false signals and improving the accuracy of trade decisions.

5. Risk Management: By assessing different time frames, traders can better gauge the risk associated with a particular trade. This enables more effective risk management, including setting appropriate stop-loss levels and position sizes based on the broader market context.

Cons

1. Complexity and Learning Curve: MTFA requires a deep understanding of technical analysis and the ability to synthesise information across various time frames. This complexity can be overwhelming for novice traders and may lead to confusion.

2. Increased Workload: Analysing multiple time frames can be time-consuming. Traders employing MTFA may spend more time conducting analyses, which can be challenging for those with limited availability.

3. Conflicting Signals: Different time frames may sometimes provide conflicting signals. For example, a short-term chart may suggest a buy signal, while a longer-term chart indicates a sell signal. Traders must navigate these conflicting signals skillfully.

4. Over-Analysis Paralysis: The abundance of information from various time frames may lead to over-analysis, causing traders to hesitate or miss out on profitable opportunities. Striking the right balance between thorough analysis and decisive action is crucial.

Multi-Time Frame Analysis is a valuable tool in a trader's arsenal, providing a holistic view of market conditions.
While it offers numerous benefits, it's essential to be aware of the potential drawbacks and challenges. Traders must balance the thorough analysis of multiple time frames and the need for timely, decisive action. With a well-rounded approach, MTFA can significantly enhance a trader's ability to navigate the dynamic world of financial markets.

At Definedge, we take a proactive approach with Multi-Time Frame Analysis, setting ourselves apart in market analysis. Our commitment is reflected in developing multiple scanners tailored for Candlesticks and the P&F charting method. Leaving no stone unturned, we offer scanners equipped with ranking and scoring methodologies, empowering you to identify the best-performing stocks or sectors.

Here is an image for a quick look at the available Multi-Time Frame Analysis scanners:

Unlock the full potential of these features by opening an account with Definedge Securities. Sign Up here: https://www.definedgesecurities.com/

While some functionalities are available through our Zone and TradePoint apps with associated costs, fret not – you can explore them free of charge for an entire month before deciding to subscribe.

Stock List 10th Feb 2024

Since my school days, I've had a habit of reading newspapers, and one column that always caught my eye was Today's Horoscope or Horoscope of the Day. Do you have the habit of this?

Over time, my fascination with horoscopes grew, leading me to get deeper into the subject by reading books dedicated to astrology. During my college days, I used to buy books and read them.

Back in 2024, as I was browsing articles online, I recently stumbled upon one focused on Taurus predictions for 2024, my zodiac sign. Intrigued by the idea, I felt compelled to explore how the characteristics associated with each zodiac sign might intersect with the stock market traders.

In the stock market, every decision is analysed, but it is a surprise that some traders turn to the stars for guidance. Yes, you read that right—zodiac signs, those celestial symbols that supposedly dictate our personalities and destinies, have found their way into stock market trading.

Can your astrological sign really influence your success in the stock market?

Let's explore this intriguing intersection of mysticism and finance.

Aries (March 21 - April 19): The Trailblazer
Aries are known for their boldness and competitive spirit, traits that can serve them well in the fast-paced world of stock trading. Their impulsive nature might lead to quick decision-making, resulting in significant gains or losses.
Aries traders thrive on taking risks and are unafraid to jump into new ventures. However, they must be cautious not to let their impatience lead to hasty decisions that could backfire.

Taurus (April 20 - May 20): The Patient Strategist
Taureans are known for their patience and practicality, making them well-suited for the unpredictable nature of the stock market. They prefer stability and reliability, often opting for long-term investments rather than risky ventures. Taurus traders carefully analyse market trends and economic indicators before making decisions, ensuring they are well-informed. While their cautious approach may sometimes result in missed opportunities, it protects them from unnecessary losses.

Gemini (May 21 - June 20): The Versatile Trader
Geminis are characterised by their adaptability and curiosity, traits that can make them skilled traders in the stock market. They thrive in dynamic environments and constantly seek new opportunities to capitalise on. Gemini traders are quick thinkers and adept at analysing market trends, allowing them to make informed decisions on the fly. However, their tendency to be indecisive can sometimes lead to missed opportunities or impulsive trades.

Cancer (June 21 - July 22): The Intuitive Trader
Cancerians are known for their intuition and emotional intelligence, qualities that can be beneficial in navigating the complexities of the stock market. They have a keen sense of empathy, allowing them to understand market sentiment and anticipate fluctuations. Cancer traders trust their instincts and often rely on gut feelings when making investment decisions. While their emotional approach can sometimes cloud their judgment, it also enables them to connect with market trends on a deeper level.

Leo (July 23 - August 22): The Confident Risk-Taker
Leos are natural-born leaders with an innate sense of confidence, traits that can make them fearless traders in the stock market. They thrive on taking risks and are unafraid to pursue what they want. Leo traders are self-assured and decisive, often making bold moves that set them apart from the crowd. However, their tendency to be overly optimistic can sometimes lead to reckless behaviour and significant losses if not tempered with caution.

Virgo (August 23 - September 22): The Analytical Perfectionist
Virgos are known for their attention to detail and analytical mindset, making them meticulous traders in the stock market. They excel at conducting thorough research and meticulously analysing data before making investment decisions. Virgo traders are disciplined and methodical, often following a strict set of criteria when evaluating potential opportunities. While their analytical approach can sometimes lead to overthinking, it also ensures that they make well-informed decisions based on sound reasoning.

Libra (September 23 - October 22): The Balanced Trader
Libras are known for their diplomacy and sense of balance, qualities that can serve them well in the unpredictable world of stock trading. They weigh their options carefully and strive to maintain harmony in their investment portfolio. Libra traders are adept at identifying opportunities that offer a good risk-reward balance and are skilled negotiators in making deals. However, their indecisiveness can sometimes hinder their ability to act swiftly in fast-moving markets.

Scorpio (October 23 - November 21): The Strategic Trader
Scorpios are known for their passion and determination, making them formidable stock market traders. They possess an instinct for spotting opportunities and are not afraid to delve into the depths of the market to uncover hidden gems. Scorpio traders are strategic and calculated, often employing tactics such as diversification and hedging to mitigate risks. However, their intensity and penchant for secrecy can sometimes lead to suspicion among other traders.

Sagittarius (November 22 - December 21): The Adventurous Speculator
Sagittarians are known for their optimism and adventurous spirit, which can make them bold speculators in the stock market. They thrive on taking risks and always seek new opportunities to explore. Sagittarius traders are optimistic about the future and are willing to take chances on emerging trends and technologies. However, their tendency to be overconfident can sometimes lead to reckless behaviour and significant losses.

Capricorn (December 22 - January 19): The Disciplined Planner
Capricorns are known for their ambition and discipline, qualities that can make them disciplined planners in stock trading. They set clear goals for themselves and work tirelessly to achieve them, often adopting a long-term approach to investing. Capricorn traders are patient and methodical, carefully weighing each investment opportunity's potential risks and rewards. However, their conservative nature sometimes keeps them from taking advantage of more lucrative but riskier ventures.

Aquarius (January 20 - February 18): The Visionary Innovator
Aquarians are known for their innovation and forward-thinking mindset, traits that can make them visionary traders in the stock market. They are always on the lookout for disruptive technologies and revolutionary ideas that have the potential to shape the future. Aquarius traders are not afraid to think outside the box and are willing to take calculated risks on unconventional opportunities. However, their tendency to be idealistic can sometimes cloud their judgment and lead to impulsive decisions.

Pisces (February 19 - March 20): The Intuitive Dreamer
Pisceans are known for their intuition and creativity, qualities that can make them intuitive traders in the stock market. They possess a deep understanding of human nature and are adept at sensing market trends before they become apparent to others. Pisces traders trust their instincts and are often guided by their dreams and aspirations. However, their idealistic nature can sometimes lead to impractical decisions and financial losses if not grounded in reality.

While using astrology to guide investment decisions may seem far-fetched to some, many traders believe there is a correlation between zodiac signs and trading tendencies.

Whether you believe in the power of the stars or not, there's no denying that understanding your personality traits and tendencies can help you become a more self-aware and disciplined trader. So, the next time you're pondering your investment strategy, perhaps it's worth looking at the stars for cosmic guidance. Who knows? The universe might have some investment tips up its sleeve.

@Eswar S confirmation of pattern??

READ ONLY IF YOU WISH TO RIDE A bull BEAR

In the stock market, where participants vie for profits amidst the volatile waves of economic tides, one strategy stands out as both feared and revered: short selling. Often considered an art form rather than a mere trading technique, short selling involves selling borrowed securities to buy them back at a lower price, thus profiting from the price decline. While some view it with scepticism due to its association with market downturns, others recognise its strategic complexity and potential for profit generation when executed precisely. Indeed, short selling can be likened to an art requiring skill, foresight, and a deep understanding of market dynamics.

At its core, short selling involves defying the traditional notion of buying low and selling high. Instead, practitioners of this art form seek to profit from a market downturn by identifying overvalued or overbought shares and predicting their decline. This requires a keen eye for spotting trends, analysing financial data, and interpreting market sentiment. Successful short sellers possess a contrarian mindset, daring to swim against the current of optimism that often pervades financial markets.

Much like a painter carefully selects their palette of colours, a skilled short seller meticulously researches potential targets. They scrutinise financial statements, assess industry trends, and even chart patterns. Through thorough analysis, they identify vulnerabilities others may overlook, such as deteriorating earnings, excessive leverage, or market saturation. By understanding the underlying weaknesses of a company, they can anticipate future challenges and position themselves accordingly.

Timing is crucial in short selling, akin to capturing the perfect moment in a photograph. Short sellers must gauge when to enter a trade and when to exit. Unlike long positions, where losses are capped at the initial investment, short positions carry unlimited risk, as prices can theoretically rise indefinitely. Therefore, short sellers must remain vigilant, ready to cut their losses if the market turns against them. Discipline and emotional resilience are paramount, as the temptation to abandon a losing position can be strong.

Moreover, short selling requires a profound understanding of market psychology. Fear and greed often drive investor behaviour, leading to periods of irrational exuberance and abrupt reversals. Skilled short sellers capitalise on these emotional swings, exploiting market inefficiencies and capitalising on mispriced assets. They can anticipate momentum shifts and adjust their strategies by staying attuned to market sentiment and behavioural biases.

Short selling is vital in markets despite its reputation as a risky endeavour. By providing liquidity and price discovery, short sellers contribute to market efficiency, helping to prevent asset bubbles and excess speculation. Furthermore, they check corporate misconduct, uncovering fraud and malfeasance that may otherwise go unnoticed. In this sense, short selling can be seen as market regulation, promoting transparency and accountability.

In conclusion, short selling is not merely a speculative gamble but a nuanced art form that requires skill, discipline, and a deep understanding of market dynamics. Like a master painter wielding a brush, successful short sellers navigate the complexities of financial markets with precision and foresight. While it may not be suitable for all investors, those who master the art of short selling can unlock opportunities for profit generation in both bull and bear markets. As with any art form, practice, patience, and perseverance are essential for those seeking to excel in short selling.

@L M Apka demand tha so post to karna padega na

Unusual Volumes - Cash Chart

Unusual Volumes - Futures

Unusual Options Activity

ITC 420PE Chart - Entry @ 9.70

ITC415PE Chart - Entry @ 7.50

@L M Sure sir

Beauty reigned supreme in an era where Bollywood often favoured heroines with titles like Miss World, Miss Universe, or Miss India. Yet, as the spotlight shifted to the silver screen, the importance of acting skills became apparent. While these titles could secure success in modelling, they offered no guarantee of survival amidst fierce competition in the film industry. Similarly, once hailed as stalwarts in the stock markets, blue-chip companies can falter unexpectedly, highlighting the need to look beyond superficial appearances and recognise the importance of performance and adaptability.

In trading and investing, letting emotions cloud judgment is too easy. Investors often find themselves swayed by personal biases or hopeful sentiments, particularly in blue-chip stocks. When these market giants start to stumble, there's a common misconception that the dip represents a bottom, and many hold onto the belief that the stock will inevitably rebound. However, history tells a different story.

There are two distinct types of downturns: those that coincide with a broader market decline and those where a stock experiences a correction independently of market trends. While the former may be attributed to systemic factors affecting the entire market, the latter signals specific issues within the company. When a stock falls irrespective of overall market conditions, it often serves as a red flag, indicating underlying weaknesses or challenges that investors should heed. Recognising and avoiding such stocks is a must.

Over the years, we've witnessed numerous instances where once-revered blue-chip stocks fell from grace, leaving investors hesitant to glance in their direction. The list of such stocks is extensive, ranging from Unitech and Satyam to RCOM and DHFL, to name a few. Despite their previous status as market darlings, these companies suffered significant downturns that caught many investors off guard.

Even now, amidst talks of potential revivals for struggling giants like Vodafone Idea and Yes Bank, the question remains: Is this a reversal or a temporary blip in a downward spiral?

As a chartist, I adhere to a simple principle: I trade based on what I see on the charts, not personal preferences or speculative optimism. One of the strategies I rely on is the Laidback Strategy, a well-known approach within the Definedge community.

Let's consider some examples to illustrate the effectiveness of this approach:

1. Hero Moto Corp:
   Despite its stature in the market, Hero Moto Corp experienced a prolonged period of underperformance. However, when my system indicated a BUY signal for the first time since 2017. The system triggered a buy at Rs. 3,760 at the end of November 2023; the stock demonstrated significant outperformance, proving the value of trading based on technical indicators rather than sentiment.

2. Suzlon:
   Another example is Suzlon, which faced challenges and scepticism from investors for years. Yet, when the charts signalled a BUY at Rs.14 after long years of underperformance, the stock defied expectations and delivered impressive returns.

3. IOC Ltd:
   Like the examples above, IOC languished for some time before showing signs of a potential turnaround. Again, following the signals from my trading system led to profitable opportunities.

As for Vodafone Idea and Yes Bank, while there may be murmurs of a potential resurgence, my system has yet to trigger a BUY signal. Therefore, I remain cautious and avoid entering positions until the charts indicate.

1. Yes Bank

2. Vodafone Idea

The key takeaway is to trade what you see on the charts, not what you wish to see or hope for. Emotions and personal biases can cloud judgment and lead to costly mistakes in investing and trading. By relying on technical analysis and adhering to proven strategies, navigate markets with greater confidence and discipline.

Let the charts be your guide, and remember: it's not about what you like but rather what you see unfolding before you.

Forget Western Candlestick Pattern, Learn a pattern by #Gujju #Trader

Kanti Kaka Ni Chavi - #Kudko #Bhusko #CandlestickPattern

https://www.youtube.com/watch?v=EvkllXz4Qb8&t=78s

Stock List 3rd Feb 2024

@Yogen Mehta You can scan for fresh scripts on EOD basis.

Bulls entered the Dragon but needed to break the resistance of the gap.

Re: The Strategy's Unbelievable Stats Revealed - Video Coming Soon...

You may have heard about this simple concept "Golden Cross" and "Death Cross".

But this stats are just unbelievable. Even I was so shocked when I saw this.

Watch video here: https://youtu.be/6312czWjTTE?si=Z58fn3Gf3sFR_yUg

#KeepItSimple

Is anything interesting in the #BudgetDay2024?

Let's focus on the Nifty chart here.

The potential for a bullish trend is evident by forming a Bullish or Inverted Head and Shoulder pattern, indicating a possible upward market move.

A significant obstacle lies in the form of a gap between 21,800 and 22,000, establishing a formidable resistance zone.

The presence of a Doji pattern, coupled with bearish momentum on the hourly chart, raises concerns about the weakening grip of the bulls on the market.

Should the bulls prove unable to breach the resistance, a looming threat emerges as a potential aggressive onslaught by the bears.

Traders must remain vigilant and watch the levels closely.

@Deven Shah Thanks Sirji

Do you know about the Equal-Weighted Index?

Watch the video and learn about the Equal Weighted Index (EQW).

Index are readily available in #Definedge #TradePoint and #RZone

https://youtu.be/Hc4DhNA_vGE

@RAGUNATH_AG Yes

@Yogesh Vinayak Joshi Thanks for reading.

Warning - Long Piece, but Worth Reading

Chart patterns are a cornerstone for any technical analyst, regardless of the asset class they are analysing. Whether it's stocks, currencies, or interest rates, chart patterns are crucial in predicting future price movements. However, the effectiveness of technical analysis patterns can vary across asset classes or market segments, such as large-cap, mid-cap, and small-cap stocks.

Technical analysis is a versatile tool traders use to analyse historical price movements and identify potential future trends. It involves studying charts and patterns to predict where prices may move next. However, the success of technical analysis is often debated, with some arguing that it may not work uniformly across all asset classes.

When I was learning technical analysis, my mentor emphasised the importance of objectivity. He used to say, "Cover the name of the left top and give your view." This approach encourages analysts to focus on the chart patterns rather than being influenced by the name or reputation of the asset being analysed.

I am writing this today because there has been a lot of buzz as Reliance's share price gained 7%.

Despite scepticism among traders, a chart analysis posted on a forum indicated a breakout above 2,640. The stock broke above a crucial resistance zone and exhibited a classic pattern of rallying, retesting, and then resuming its bullish trend.

The lesson is that chart patterns are universal, and their effectiveness is not limited to specific stocks or market segments. Whether analysing large-cap, mid-cap, or small-cap stocks, the principles of technical analysis remain consistent.

The key to successful technical analysis is how traders perceive and interpret chart patterns. The name of the stock, especially in the top left corner, should be irrelevant when conducting technical analysis. The patterns, trends, and support/resistance levels matter most.

Confidence in trading these patterns comes from understanding the historical performance of specific patterns and the associated risk management strategies. While technical analysis is not foolproof, having a well-defined stop-loss in place helps mitigate potential losses.

Although the basic principles of technical analysis remain constant, there are nuances to consider when applying them to different market capitalisations. Large-cap stocks, for instance, may be less volatile and follow trends more smoothly, making specific patterns more reliable. On the other hand, mid-cap and small-cap stocks can exhibit greater volatility, requiring traders to adjust their risk management strategies accordingly.

The recent rally in Reliance Industries serves as a reminder that successful analysis depends on understanding and interpreting chart patterns rather than getting swayed by the instrument's name.

@JP Yes

Stock List 27th Jan 2024

Coming Soon.....Stay Tuned

@Debarchan Ghosh Dastidar Book, haven't planned yet.

“Insan ka kartavya hota hai koshish karna. Kamyabi, nakamyabi sab uske hath me hai” – the best dialogue from the movie Zindagi Na Mile Doobara.

On a relaxing Sunday, I watched the Zindagi Na Mile Dobara movie and simultaneously browsed my last week's trades. I suddenly realised after the volatile market that you need a break for yourself with your friends.

The Bollywood movie "Zindagi Na Mile Dobara" is one of the iconic movies of Friends and is an inspiration for many as the three friends, Arjun (Hrithik Roshan), Kabir (Abhay Deol) and Imraan (Farhan Akhtar). Little did they know that the film's journey of self-discovery and camaraderie would hold valuable lessons for their expedition in the unpredictable realm of stocks.

In the stock market, much like the characters in the movie, traders embark on a journey filled with ups and downs, joys and sorrows. At the centre of their story is a unique character named Bagwati (a bag); let's make it a symbol of their investments and the market itself.

In the movie, Bagwati is a funny and expensive travel companion. Similarly, in the stock market, stocks become the Bagwati of traders – each with its personality, quirks, and potential for adventure. Just as Arjun, Imran, and Kabir learned to embrace the uncertainties of life, traders must learn to be profitable with the unpredictable nature of the market.

Lesson 1: Risk and Adventure
In "Zindagi Na Mile Dobara," the characters plan a road trip challenging their comfort zones. Similarly, in the stock market, traders must take risks and enjoy adventure. Like the road trip, the market is full of uncertainties, and success often lies in the ability to face challenges head-on.

Lesson 2: Diversify Your Portfolio, Diversify Your Experiences
As Arjun, Imran, and Kabir explore different facets of life, traders should diversify their portfolios to minimise risks. Bagwati, with its mix of colour and design, represents the importance of a diversified approach. In the stock market, spreading investments across various sectors can help traders weather the storms and ensure a smoother journey.

Lesson 3: Learn from Mistakes and Adapt
As the movie characters learn from their mistakes, stock market traders must adapt and evolve. Traders should analyse past decisions, learn from their mistakes, and adjust their strategies to the changing market conditions.

Lesson 4: Cherish Friendships and Mentorships
In "Zindagi Na Mile Dobara," the friendship bond is a cornerstone of the narrative. Similarly, in the stock market, traders should value the importance of friendships and mentorships. Learning from experienced traders and sharing insights with peers can provide an invaluable support system in times of uncertainty. In the forum, we are here to create a bond of friendship and mentorship to shorten your learning curve.

Lesson 5: Enjoy the Journey, Not Just the Destination
The movie teaches us that life is about the journey, not just the destination. Similarly, in the stock market, traders should enjoy the process of trading/investing and not just focus on the result. Celebrate small victories, learn from failures, and savour the moments that make the journey worthwhile.

Zindagi Na Mile Dobara and the stock market share common threads of unpredictability, risk, and self-discovery. Traders who learn the lessons from this Bollywood masterpiece will find themselves better equipped to drive the twists and turns of the stock market journey, much like the characters who discovered the true meaning of life in Spain.

Stock List - 21st Jan 2024

Overbought? Oversold? Forget It! Use RSI as Market Breadth NOW.

Think you know RSI? Think again!

This video will forever change how you see this popular indicator.

Unlocking a new dimension for smarter trading decisions.

With the power of the RZone scanner by Definedge to reveal hidden trends and understand the true participation of the market in significant moves.

Whether you're an experienced trader or starting out, this video is a must-watch!

https://www.youtube.com/watch?v=0gwoeTchxVI

Nifty reversed with the bear gap, forming the island reversal pattern on the daily charts, thanks to the HDFC Bank.

But I am not here to highlight the Nifty50 chart. Check my Nifty Chart analysis here.

For avid followers of RSI, the latest data reveals some intriguing statistics that warrant attention:

Source: RZone

1. Fresh Negative Crossovers: Today, 18 stocks exhibited a fresh negative crossover on the RSI, indicating a potential shift in momentum to the downside.

2. Existing Negative Crossovers: As of yesterday, 19 stocks were already in a negative crossover on the RSI, suggesting that these stocks might be facing a bearish trend.

3. Bullish Crossovers: Only 13 stocks are currently in a bullish crossover on the RSI, indicating a positive trend. However, if the bears continue to dominate the market, these stocks may also find themselves in a precarious position.

Though the setup does not indicate the trend reversal, it is a sign of caution on longs.

Thanks for reading.

In the latest edition of the weekly newsletter dated December 30, 2023, significant attention was drawn to the emergence of multiple Bearish Harmonic patterns within the price reversal zones of 21,700 and 22,135 for Nifty. As predicted, the index peaked at 22,124 before undergoing a reversal, aligning precisely with the outlined harmonic patterns.

A closer look at Nifty's daily chart reveals the presence of the Bear Sash candlestick pattern at its recent high. For those unfamiliar with this pattern, a comprehensive explanation can be found in the accompanying video linked here.

Adding to the cautionary signals, the possibility of a Bearish Island formation is looming, contingent on today's closing performance. A Bearish Island pattern occurs when an isolated price gap up is followed by a gap down formed at the same levels, typically indicating a shift in market sentiment, which forms between two sessions.

What is your trading plan?

In this insightful video, I break down the intricacies of Bull Sash and Bear Sash candlestick patterns – powerful two-candle reversal formations that occur after a significant market movement.

Ready to take your trading to the next level?

If you're a Definedge Securities customer, explore the convenience of our ready-built scanner in RZone. Scan for Bull Sash and Bear Sash patterns effortlessly across multiple timeframes, providing you with a strategic advantage in the market.

Click here to watch the video

A stock market enthusiast has heard the name Harshad Mehta. Recently, a movie was made about his life, and the dialogue was very popular. One such dialogue is “Kam bolna, zyada kaam karna” which means talk less and work more.

In the stock market, where fortunes are made and lost in the blink of an eye, stock market dealers play a crucial role in executing trades on behalf of clients. Often unseen and unheard, these individuals are the unsung heroes behind the scenes of the bustling financial markets.

As you may have seen in the movies, the dealers in the ring trading are the ones who buy and sell on behalf of clients.

However, with the evolution of technology and the changing landscape of investing, the role of the traditional stock market dealer is transforming, leaving some to wonder about the future of this once indispensable profession.

I recall the early days of my career when I entered the fast-paced world of commodity trading. The trading floor was chaotic with ringing phones, shouting traders, and the constant hum of financial news updates. As a young and eager commodity dealer, my days were to bridge clients and the research desk, make split-second decisions, and field countless calls from anxious clients seeking advice on their next move.

However, the winds of change were blowing even then. The advent of online trading platforms, algorithmic trading, and the democratisation of financial information meant that investors were gaining more control over their trades. The shift was palpable; investors were turning into executors of their trades, armed with real-time market data and the ability to execute orders at the click of a button.

The COVID-19 pandemic further accelerated this trend. As the world grappled with the challenges posed by the virus, technology emerged as a saviour. Online communication platforms became the new norm and the vaccine incorporated immunity into our blood and embedded technology into our minds. Virtual meetings and digital transactions became the lifeline for businesses, including those in the financial sector.

With its rapidly growing tech-savvy population, India embraced this change with open arms. The traditional stock market dealer found themselves in a new era where their once indispensable role was questioned. The phone, which used to ring incessantly with clients seeking advice, was now silent, replaced by the constant hum of servers and algorithms executing trades in milliseconds.

Trading, once seen as a dynamic and social business, took on a new dimension of solitude. The camaraderie among traders, the banter on the trading floor, and the shared adrenaline rush were replaced by the sterile glow of computer screens in empty rooms. The art of negotiation and persuasion, skills honed by veteran dealers, seemed to be fading into obsolescence.

The loneliness of the modern trader became evident. The personal touch, the reassurance in the voice of a seasoned dealer during turbulent market times, was replaced by automated responses and pre-programmed algorithms. The human element, it seemed, was being slowly edged out by the relentless march of technology.

For those nostalgic for the days of broker-client relationships and the reassuring voice of a stock market dealer, the iconic movie "The Wolf of Wall Street" serves as a reminder of a bygone era. The days of pen-and-paper transactions, aggressive sales pitches, and charismatic brokers seem like a distant memory in today's digital age.

Yet, amidst this technological upheaval, some clients still find solace in speaking to a human dealer. The comfort derived from a personal connection, the ability to seek advice from a knowledgeable professional, and the assurance that someone is at the other end of the line during tumultuous market conditions are irreplaceable for some investors.

The days of a bustling trading floor may be fading, but the human touch in trading is not entirely lost. It may be via a digital chat on WhatsApp, Telegram, Twitter or even here at our forum.

I request a few minutes of your to write about your experience on dealer-client relationships.

Ok.

HDFC Bank's share price traded strongly in the banking stock basket, forming the Bull Sash candlestick pattern on the daily chart.

But.......

An Adaptive RSI indicator has turned negative and the stock price have resisted at the signal line of the indicator.

The negative cross and resistance zone of 1,680-1,700 will be a decider for the further bullish momentum. If bulls fail to surpass with strong trend, that may be standing with the white flag.

It's working for me. Will check with support team if there is any issue.

@Yogesh Vinayak Joshi Thanks for reading.

@RAJESH DOSHI Sir, you can watch this video for clarification. https://www.youtube.com/watch?v=o6eO31UgiCI&t=33s

The complexity often reigns supreme; I have found refuge in simplicity's soothing embrace. It's not just a hashtag I throw around on social media; it's a philosophy of my trading soul - #KeepItSimple

You've likely noticed my commitment to simplicity as you follow me on social media. But it's not a mere digital slogan; it reflects how I approach life beyond the screens. I enjoy keeping things simple, letting the essence shine through the noise.

Amidst the cacophony of candlesticks and oscillators, one chart stands out with its simplicity – Biocon.

On the weekly chart, my eyes are drawn to the minimalist elegance of trendlines and the heartbeat of the market, the volumes.

The falling trendline, a humble stroke on the chart, speaks volumes about the market's mood. It's not about complicated patterns or convoluted indicators; it's about recognising the artistry in simplicity. Paired with volumes, each bar is a note in the melody of market dynamics.

If you're a fellow learner, the chart isn't just data; it's the strokes of your understanding. And, oh, the joy of witnessing you opening your chart – a sign of your hunger for knowledge and a great learner.

Yet, another character in our financial tale seeks ideas for profits, the one yearning for quick wins. I understand the temptation to skip the verses and seek the chorus. However, my heart resonates with the first kind – the perpetual learner who revels in the long-term symphony of knowledge.

So, here we stand at the crossroads of simplicity and complexity. I urge you to be the learner who seeks understanding, for in the long term learning lies the true magic of the market and life itself.

#KeepItSimple, and let the charts sing the ballad of simplicity in the grand opera of the markets.

Stock List - 13th Jan 2024

The performance of market indices gauges the stock market trend, the Nifty50. The movements within these indices reflect individual stock performances and are influenced by the weightage assigned to each constituent stock and the overall market breadth.

The Role of Weightage in Index Formation:
The Nifty50, a key benchmark index in India, comprises 50 actively traded stocks from various sectors. However, not all stocks carry the same weight in determining the index's value. The weightage assigned to a stock is based on its market capitalisation, essentially the total market value of its outstanding shares. This means that stocks with higher market capitalisation have a more significant impact on the index.

For instance, if a heavyweight stock like Reliance Industries experiences a substantial price movement, it will have a more pronounced effect on the Nifty50 than a smaller stock with a lower weightage. Investors closely monitor these weights as they can significantly influence index movements and individual portfolios.

Market Breadth:
While weightage focuses on the impact of individual stocks, market breadth provides a broader perspective on the market's overall health. Market breadth measures the number of advancing and declining stocks in the market. A strong market breadth occurs when many stocks participate in a market rally, indicating a broad-based uptrend. Conversely, a weak market breadth suggests that only a few stocks drive the market higher, and the overall strength may be limited.

Nifty50 Leadership Dynamics:
In the recent few weeks, the Nifty50 witnessed a change in leadership. HDFC Bank, TCS, and Infosys led the index, demonstrating the market's dynamic nature. However, the recent surge in Reliance Industries' stock has turned heads. As an elephant in the market with substantial weightage, its influence on the Nifty50 is undeniable.

Investor Dilemma: Single Stock Leadership vs. Weak Market Breadth
The question for investors is whether a single stock's leadership, despite its weightage, can indicate the broader market's health. Should one change their view on the Nifty50 based on the performance of a dominant stock while the market breadth remains weak? Or should investors stick to analysing the levels of the Nifty50 itself?

Balancing Act:
It is finding the right balance between individual stock movements and the overall market dynamics. While a single stock may dominate the headlines, a holistic approach to analysing market breadth and the overall composition of the index is essential. A narrow leadership with weak market breadth may indicate a less sustainable market rally, potentially leading to increased volatility.

Understanding the dynamics of index weightage and market breadth is essential for informed decision-making. Investors must evaluate the impact of individual stocks on indices like the Nifty50 while keeping an eye on broader market participation. Striking the right balance between these factors can help investors navigate the complex world of stock trading and make more informed decisions in pursuing long-term success.

Re: Reliance - Breakout ABOVE 2640

Dive into the promises, deals, and disruptions of the Vibrant Gujarat Global Summit and explore how it could paint a golden future for the Indian stock market.

Read article - https://www.definedgesecurities.com/blog/whats-trending/gateway-to-the-future-how-vibrant-gujarat-2024-illuminates-the-stock-market/

@Rajeev Talasikar Adaptive RSI - 14,9

In yesterday's session, the Nifty index witnessed a momentum shift as bearish forces led by the banking sector.

A glance at the daily chart of Nifty reveals concerning indicators for bulls. The emergence of a doji candlestick pattern, coupled with a bearish momentum, paints a gloomy picture for those who were hoping for a sustained upward trend. Furthermore, the Bearish Three Line Strike candlestick pattern yesterday that followed is a clear signal of an impending bearish reversal.

Adding to the bearish outlook is the convergence observed on the Adaptive Relative Strength Index (RSI). This technical indicator, which measures the trend's strength and momentum, shows signs that the once-dominant bullish sentiment is fading. If the bearish crossover on the Adaptive RSI triggers, it will be the icing on the cake for bears.

The primary driver behind this bearish momentum is the banking sector. As a leading indicator for the overall market sentiment, the weakness in banking stocks is a cause for concern.

Are You Trading Nifty or Focusing on Individual Stocks?

As the stock markets soar to new heights, the minds of investors and traders are not solely focused on charts and portfolios. Instead, they are eagerly planning their holidays, seeking a reprieve from the hustle and bustle of daily life.

The year 2024 brings myriad choices, but one destination that has captured the attention of many is the enchanting beaches and sports adventure of Lakshadweep.

For those who revel in the soothing sound of waves and the warmth of golden sands, Lakshadweep emerges as the talk of the town. This idyllic destination boasts pristine beaches, crystal-clear waters, and vibrant coral reefs, making it a haven for beach lovers. The archipelago, consisting of 36 islands, offers a serene escape from the chaos of urban life, making it an ideal choice for those looking to unwind and rejuvenate.

As the weekends approach, families seek the perfect destination to spend quality time together. The upcoming long weekend around Republic Day on 26th January provides an excellent opportunity to embark on a memorable journey. With numerous diverse attractions across the country, the only dilemma is choosing the perfect destination.

With its rich cultural tapestry and diverse landscapes, India has become a magnet for tourists worldwide. The burgeoning tourism industry is a golden opportunity for locals to explore their backyard. From the snow-capped peaks of the Himalayas to the sun-kissed beaches of Goa, the choices are as varied as the country itself.

Where to Next? Deciding Your Ideal Destination?

With an array of options, the decision ultimately rests on personal preferences. If the idea of unwinding on secluded beaches is your dream holiday, then Lakshadweep beckons. For those seeking adventure amidst historical wonders or cultural richness, the vast canvas of India offers countless possibilities.

As India's tourism industry thrives in 2024, the country emerges as a prime destination for both domestic and international travellers.

Lakshadweep's pristine beauty and the upcoming long weekends present an enticing proposition for those yearning for a beach retreat. However, with India's diverse offerings, the decision on the next destination ultimately depends on individual preferences and interests.

Are you ready for your holidays?

Do share your recent holiday experience.

Stock List - 6th Jan 2024

Euphoria markets, characterised by exuberant investor sentiment and soaring prices, can be a double-edged sword for traders and investors. While these markets offer the potential for significant gains, the challenges of finding the right stocks on the chart become increasingly pronounced.

1. Technical Overextension:
   One of the primary challenges in identifying stocks on the chart during the euphoric phases is the potential for technical overextension. Price movements may deviate significantly from historical patterns and indicators, challenging relying on traditional chart analysis techniques. Traders accustomed to technical signals may grapple with distorted patterns and false signals, complicating their decision-making process.

2. Irrational Exuberance:
   Euphoria markets are often marked by irrational exuberance, where market participants become overly optimistic and speculative. This exuberance can result in exaggerated price movements that do not align with the stock's underlying fundamentals. Do traders bother about fundamentals?
   Traders relying on technical analysis may struggle to make sense of the disconnect between price action and the actual health of the companies.

3. Herd Behaviour:
   The psychological phenomenon of herd behaviour is amplified during euphoric markets. Traders may be swayed by the collective actions of the crowd rather than relying on individual chart analysis. This herding behaviour can lead to crowded buses, as referred by @AP , making it difficult for traders to identify stocks with genuine technical strength amidst the noise of mass market movements.

4. Increased Volatility:
   Euphoria markets are notorious for heightened volatility. While volatility can present trading opportunities, it also introduces challenges for chart analysis. Sharp price fluctuations and sudden reversals can invalidate technical patterns, causing frustration for traders who rely on historical price data to make informed decisions.

5. Emotional Rollercoaster (FOMO):
   The psychological impact of trying to identify stocks on the chart during euphoric markets can be profound. The fear of missing out (FOMO) may drive impulsive decisions, and the constant pressure to stay ahead of rapidly changing trends can lead to emotional exhaustion.
   Traders may experience anxiety, stress, and emotional fatigue as they navigate the intense highs and lows of euphoric market conditions.

6. Risk of Correction:
   Euphoria markets are susceptible to corrections, where prices may experience a sharp decline after reaching unsustainable levels. Traders relying solely on technical analysis may find it challenging to anticipate these corrections, leading to unexpected losses.
   The fear of a sudden market reversal can further amplify the psychological stress associated with identifying stocks on the chart during the euphoric phases.

You have been following my Laidback Strategy on stocks for many months now.

In this video, I have explained the Laidback Strategy on ETFs, shedding light on how Definedge Securities clients can seamlessly analyse and trade in ETFs directly from their accounts.

Do share your feedback on the Laidback Strategy.

https://www.youtube.com/watch?v=UNvRYNzTwV4

It is very important to rotate between Largecaps, Midcaps and SmallCaps in your portfolio, but how will you decide?

One chart you should follow regularly is Ratio Charts.

Watch this video to analyse and time your allocation between large, mid and smallcaps.

https://youtu.be/5lDEP74LdOk?si=BoaE6QVkDk44rQAJ

@GUTTIKONDA VENKATA SAI It is available on the Library of Definedge Securities page.

Click here https://www.definedgesecurities.com/library/close-above-previous-n-bars-heikin-ashi/

Reliance Industries has been experiencing a bullish rally, but the daily Heikin Ashi chart shows signs of exhaustion.

Following the bullish surge, a couple of doji candles suggest a potential momentum loss for the bulls. Interestingly, this exhaustion is particularly evident as the stock approaches the 20-month resistance level.

Despite the apparent signs of exhaustion, there are no clear bearish Heikin Ashi candles yet. This absence of bearish reversal patterns indicates that the bulls still maintain some control over the market.

The range breakout for Reliance is placed at 2,640, making this a crucial level for traders to watch. If the stock breaks above this resistance, it could signal a renewed bullish momentum. On the other hand, a failure to break through this level may intensify the exhaustion signals and potentially lead to a reversal. A successful breakout could propel the Nifty towards the 22,000 level.

Stock List - 30th December 2023

@Ranadip Dey https://youtu.be/Yl7EnK7LEIU?si=-w7oDAGbVTBanqmo

The Vriddhi strategy suggests a bullish momentum for ITC, with the Adaptive RSI providing a perspective on the stock's strength. However, the optimism generated by this signal is tempered by the stock's current trading pattern—a falling channel.

A falling channel typically indicates a downtrend consolidation, with the stock moving between two downward-sloping trendlines. The breakout level, set at Rs. 461 could potentially signify a shift in the prevailing trend. If the stock manages to surpass this level, it may resume the bullish momentum for ITC.

Happy Trading!

@Shyam S Sir follow these steps

Price Scanner > Candlestick Scanner > Under Conditions Select "Popular" > Next to that, you will find "Vriddhi Strategy"

@Rajeev Goyal Sure. How about a video on this pattern?

Good Morning Siddharthji,
You can watch this video on TOI explained by @AP and @Raghunath-Reddy
https://www.youtube.com/watch?v=MRZ8epTK-PY

@Rajeev Talasikar Good to know you are following this pattern.

@Debarchan Ghosh Dastidar I haven't tried MRS so unable to comment as of now. Let me go through this Indicator.

Good Morning Readers!

As I sat sipping my morning tea and being a trader, you tend look at charts searching for potential momentum opportunities for the day.

In the bullish trending markets, I always prefer the Ladder Bottom Candlestick Pattern.

The Ladder Bottom Candlestick Pattern is a compelling indicator used in technical analysis to identify potential bullish reversals. This pattern usually emerges after a downtrend and signifies a shift in market sentiment, suggesting that buyers are gaining control.

Characterized by a series of candlesticks with small real bodies and long lower shadows, the Ladder Bottom Pattern visually resembles a ladder, with each candlestick forming a distinct rung.

In the stock trading, having tools that can swiftly analyze and present data is invaluable. Personally, I use the Zone Mobile App to effortlessly scan through stocks and identify potential opportunities. With just a click of a button, I can access a curated list of stocks, making my morning routine more efficient.

As of the closing on December 22nd, 2023, here is a list of stocks were the pattern exists.

Have a Great Trading Day!

Stock List - 23rd December 2023

Last weekend at our Manthan event in Hyderabad, we had a session on Options but uncovered some fascinating insights during our Trader's Meet.

Seeing how many traders, despite the recent market rally, found themselves held back by psychological barriers was eye-opening.

In this video, I share our candid discussions about the mental hurdles that often hinder trading success. Many admitted to missing out on the rally due to the recurring thought, "Isse Jyada Market Kya Jayega"

I explore the following crucial parameters that I believe every trader should pay attention to:

1. Fear, Greed, and Impatience
2. Unrealistic Turning Realistic
3. Patience and Discipline
4. Risk Management
5. Building a Support System of Traders

Whether you're a seasoned trader or just starting out, this video provides valuable insights to help you overcome psychological barriers and elevate your trading game. Don't let your mindset limit your potential profits!

Watch Video here https://www.youtube.com/watch?v=Se2FxzYU9HQ

@Rajeev Talasikar It works on all TF.

The bulls have a ray of hope on Nifty and Bank Nifty as the indices have multiple support areas at 10DEMA and the gaps.

The levels of 20,900-20,950 on Nifty and 46,700-46,900 on Bank Nifty will be crucial. If bears take control below these levels, the bearish momentum may accelerate.

Nifty Daily Chart

Bank Nifty Daily Chart

Happy Trading!

In the aftermath of reaching an all-time high during the early hours of the trading session yesterday, the Indian equity markets experienced a notable shift in momentum as the day progressed. The latter half of the trading day was notably dominated by bears, with the market sentiment taking a downturn.

Amidst this bearish turn, one particular candlestick pattern that swiftly comes to mind, even without glancing at the charts, is the Bearish Engulfing pattern.

The Bearish Engulfing Candlestick pattern is a significant reversal pattern in technical analysis that often signals a potential trend reversal from bullish to bearish. This pattern consists of two candles, with the first being a smaller bullish candle followed by a larger bearish candle that completely engulfs the body of the preceding candle.

The practical aspect of the Bearish Engulfing pattern lies in its ability to reflect a shift in market sentiment. When this pattern occurs after a prolonged uptrend, it suggests that the bears have gained control, overpowering the bulls and potentially indicating a reversal in the prevailing trend. Traders consider selling or taking short positions, anticipating a downward price movement.

Here are some stats of sectorial indices and stocks were Bearish Engulfing pattern is visible.

Let's look at the stats on the number of stocks were this bearish pattern is visible.

I have scanned this pattern using the scanner feature of RZone.

You can find the stocks list by following this steps.

1. Go to Price Scanner
2. Select Candlestick Scanner
3. Select the Group
4. Under Condition, Select Engulfing Pattern Bearish
5. Finally, Click on Scan and you are ready with the stock list.

Have a Happy Trading Day!

@Ravi Shinde Well said sir.

@Pramathesh Shrivastav Thanks Pramatheshji

The Nifty had a correction of 400 points from the high today, triggering a wave of reactions across social media platforms. The online financial community is immersed in discussions about overbought breadth, overbought Relative Strength Index (RSI), and various other technical indicators that enthusiasts believe shed light on the market's health.

Is it necessary to find the reason for every move that happens in the stock market?
Some argue that understanding the cause behind market movements is crucial, while others assert that successful trading is about anticipating moves rather than playing detective after the fact.

If I ask you, "Are you a Trader or a Forensic expert?" - What is your answer...

The Trader's Approach:
For a trader, success lies in making informed decisions based on analysis and strategy before market moves unfold. Traders must set predefined levels, establish entry and exit points, and employ technical and fundamental analysis to anticipate future price actions.

The trader's mindset revolves around proactive decision-making. Before executing a trade, a trader formulates a hypothesis based on market trends, economic indicators, and other relevant factors. The emphasis is on staying ahead of the curve and making strategic moves that align with a well-thought-out plan. Traders thrive on disciplined execution and risk management, minimizing the need to find the reason behind every market swing.

The Forensic Expert's Perspective:
On the other hand, a forensic expert in the stock market is someone who deep dives into the reasons behind price movements after they occur. This retrospective analysis involves scrutinizing news, financial reports, geopolitical events, and other factors that may have influenced the market. While understanding the root causes of past movements can provide valuable insights, it may not be the primary focus of a trader.

They aim to decipher the narrative of the market, unravelling the mysteries left behind by past events. This approach can be informative but may not be as actionable for those seeking to trade in real-time actively.

The Balance between Trading and Forensic Expertise:
In reality, successful market participants may incorporate trading and forensic expertise elements. While traders focus on proactive decision-making, understanding the broader market context and the reasons behind historical movements can enhance their overall market awareness.

The key lies in finding a balance that aligns with individual goals and preferences. Traders may incorporate forensic analysis elements into their strategy to better understand market dynamics. Likewise, forensic experts may adopt a more forward-looking approach to complement their retrospective analysis.

Whether you consider yourself a trader or a forensic expert, the stock market offers a diverse playground for those seeking to navigate its complexities. While traders prioritise anticipating moves based on proactive analysis, forensic experts uncover the reasons behind market actions after the fact. Ultimately, the ideal approach may involve a blend of both perspectives, striking a balance that enhances one's ability to navigate the ever-evolving landscape of the stock market.

In India, gold has long been regarded as many investors' first preference over equity. The cultural significance attached to gold and its historic role as a store of value has ingrained a deep-seated trust in the precious metal among Indian households.

Traditionally, gold has been perceived as a symbol of wealth and security, often passed down through generations as a form of inheritance. Additionally, the stability and tangible nature of gold investments resonates well with the risk-averse nature of a significant portion of the Indian investor base.

While equity markets offer the potential for higher returns, the allure of gold persists due to its perceived safety and enduring value, making it the cornerstone of investment portfolios for many Indian investors.

With the evolving investment options in Gold, Sovereign Gold Bonds (SGBs) have emerged as a compelling choice for investors, especially in the Indian market.

With the current price of Rs. 6,149 per gram, the question arises: Should you invest in Sovereign Gold Bonds?

Let's look into the advantages of Sovereign Gold Bonds, considering the prevailing price and associated features.

1. Interest-Earning Potential:
   One of the primary attractions of Sovereign Gold Bonds is their interest rate. At 2.5%, this rate is higher than physical gold investments typically provide. In a scenario where gold prices may change, the interest earnings act as a buffer, ensuring investors gain even if the gold prices remain stagnant or experience a moderate rise.

2. Hedge Against Inflation:
   Gold has historically been considered a hedge against inflation. By investing in Sovereign Gold Bonds, investors gain exposure to the price movements of gold and secure an additional 2.5% interest. This dual benefit can be advantageous in maintaining the actual value of the investment in the face of inflationary pressures.

3. Lock-in Period and Future Planning:
   The locking period of 5 years for Sovereign Gold Bonds encourages a long-term investment horizon. This feature aligns with the traditional role of gold in preserving wealth over time. Investors looking to hedge against future uncertainties or those with a strategic perspective on gold prices may find this locking period advantageous. It provides a stable foundation for financial planning, especially for long-term goals.

4. Capital Gains Tax Exemption:
   Sovereign Gold Bonds offer a tax advantage over physical gold. The capital gains arising from the redemption of these bonds are exempted if held until maturity. This exemption adds a layer of tax efficiency to the investment, making it an attractive option for those mindful of tax implications.

5. No Storage Hassles:
   Unlike physical gold, Sovereign Gold Bonds eliminate the need for safe storage arrangements. Investors can participate in the gold market without worrying about the security and insurance costs of storing physical gold. This feature adds to the convenience of investing in gold through bonds.

These are the few advantages to investing in Sovereign Gold Bonds, but does the long-term trend look promising to invest?

Let’s look at the medium to long-term chart of MCX Gold price which are related to the spot prices.

MCX Gold Price Chart

Source: TradePoint

The Point and Figure (P&F) weekly chart for Gold is currently exhibiting a bullish trend, having successfully breached the resistance zone delineated by two black horizontal lines.

The breakout is further supported by a succession of Double Top Buy signals, signalling the potential for a sustained upward trajectory. This chart pattern strongly indicates that the price of gold is on an upward trend, with the Double Top Buy signals suggesting a continuation of the bullish momentum.

The positive outlook on the P&F chart augurs well for investors, implying that there may be more favourable opportunities and potential gains in store for those involved in the gold market.

In conclusion, investing in Sovereign Gold Bonds at the current price of Rs. 6,149/gm presents a compelling opportunity for investors in the Indian market. The 2.5% interest rate and the 5-year locking period are a strategic hedge against potential gold price fluctuations. Additionally, the tax benefits and the absence of storage concerns make SGBs attractive for those seeking exposure to gold while optimising their investment portfolio.

@Shantanu Kale https://forum.definedgesecurities.com/user/bbrijesh

ధన్యవాదాలు హైదరాబాద్ - Thank You Hyderabad!

On Saturday, 16th December 2023, Hyderabad witnessed a financial extravaganza as over 100 participants gathered for the much-anticipated Manthan event. Interestingly, we had participants from cities like Delhi, Bangalore, Jalna and many more.

The overwhelming response resulted in a fully booked venue, leaving us with sincere apologies to those who missed out on this enriching experience. The success of the event was owed entirely to the enthusiastic participation of our attendees, and we extend our gratitude to each one of them.

Event Highlights:

1. Options Greeks Unveiled by Raghunath Reddy:
   The event commenced with an insightful session by Raghunath Reddy on Options Greeks and various strategic approaches. A notable highlight was the participant's extensive use of the Options Strategy Builder in Opstra. To know more about Opstra's features, Click here.
   The engagement and interest in these advanced strategies showcased the participant's dedication to mastering the intricacies of options trading.

2. P&F Charting Essentials with Prashant Shah:
   Prashant Shah, CEO of Definedge, took the stage to explain the basics of P&F charting and share insights into stock selection through the Relative Strength feature. The positive response indicated that many participants had already utilised P&F charts, while others found the subject intriguing.
   For those seeking free charts, a valuable resource awaits at www.definedgesecurities.com, where enthusiasts can sign up for access to comprehensive charting tools.

3. Abhijit Phatak's Insightful Session on TOI:
   The final session featured Abhijit Phatak, a renowned options trader known for using charts to identify trading opportunities. He emphasized the significance of understanding trends through the use of Straddles. The session gave participants a deeper understanding of practical trend analysis and options trading strategies.

At Definedge, we believe in empowering subscribers to be independent traders. The commitment to providing valuable insights showcased through videos and forums, was well-received by participants who expressed their appreciation during the event.

Once again, our heartfelt thanks to all the participants for their active involvement and contribution to Manthan's success. The event wouldn't have been as impactful without the enthusiasm and engagement of each attendee.

If you were among the attendees at Manthan, we invite you to share your experiences and insights in the comments below. Your feedback is valuable, and it will contribute to making future events even more enriching for the financial community.

Stock List - 16th December 2023

@Subramanya Joshi RSI100 and Donchian 62period on Weekly chart

@ASHISH MAURYA Ashishji, check the Definedge Media index, an equal-weighted media index because Nifty Media depends on the move of Zeel and SunTV due to their high weights. In contrast, equal-weighted will give you a clear picture.

The Indian stock market recently witnessed a bullish surge following the Federal Reserve’s indication of potential rate cuts in 2024. This positive sentiment reverberated globally, with the Dow Jones reaching a historic high of 37,094. The Nifty and Sensex also opened with a substantial gap, signalling a buoyant market atmosphere.

In the middle of this excitement, one stock that caught the attention of hot stock chasers is NBCC India Ltd.

NBCC India Ltd: A Hot Stock in the Headlines
NBCC India Ltd made headlines by securing a significant order worth Rs. 1,500 crores, propelling its stock to a 52-week high with an impressive gain of over 3%. For hot stock chasers eager to capitalize on the news, assessing whether it’s the right time to enter the market or if they might already be late to the party is crucial.

NBCC Weekly Heikin Ashi Chart

Source: TradePoint

For a more informed decision, let’s turn our attention to technical indicators, specifically the Adaptive Relative Strength Index (ARSI) and Heikin Ashi. These tools provide valuable insights into the stock’s current trend and potential future movements.

1. Adaptive Relative Strength Index (ARSI):
The ARSI, available exclusively in TradePoint by Definedge, evaluates both strength and volatility, resembling a moving average. Observing the chart, the ARSI has been in a bullish mode since the stock was at Rs. 36. The positive crossover at this level indicated a bullish scenario, while the breakout above Rs. 44 confirmed a bottoming structure on the chart.

2. Heikin Ashi:
Heikin Ashi, a popular trend-following indicator, displays candlestick patterns that help identify the strength and direction of a trend. Remarkably, since the bullish crossover and breakout, there hasn’t been a single bearish Heikin Ashi candle on the chart, reinforcing the sustained bullish sentiment.

As tempting as it might be for hot stock chasers to jump in based on recent positive news, it’s crucial to heed the signals provided by technical indicators. In the case of NBCC India Ltd, the Adaptive RSI and Heikin Ashi have consistently shown bullish trends, with no signs of a reversal.

The chart speaks volumes, and hot stock chasers should consider these indicators before making hasty decisions. Timing is everything in the stock market, and understanding the signals can help traders make more informed and strategic investment choices.

So, are you a hot stock chaser? Don’t let the charts leave you behind – pay attention, analyse, and make decisions wisely.

In the raging bull market, everyone is eager to make money. The pigs are always on their toes to gain while the sheep will use all their contacts to get the stock tips.

But which stocks should you buy? Bluechips, midcaps, or smallcaps?

The recent market dynamics have seen an extraordinary surge, with every dip being aggressively bought by both Domestic Institutional Investors (DIIs) and retail investors.

The paradox lies in the fact that blue-chip stocks have not performed as anticipated despite the Nifty reaching all-time highs.

Let’s get into the ratio analysis of Nifty50, Midcap100, and SmallCap100 and compare them with the broader market index, Nifty500.

Source: Zone Web, Definedge

Nifty50 vs. Nifty500
If you want to make it big, forget the bluechips or Nifty50 stocks. The Nifty50/Nifty500 ratio chart shows that bluechips have underperformed the broader market.

Nifty Midcap100 vs. Nifty500
The Nifty Midcap100/Nifty500 ratio chart is trending at an all-time high. This means that midcap stocks are outperforming the broader market. Midcap stocks current trend is like Virat Kohli hitting a cover drive - they are offering a lot of opportunities for growth.

Nifty SmallCap100 vs. Nifty500
The Nifty SmallCap100/Nifty500 ratio chart has just broken out from its technical resistance. This means that smallcap stocks are poised for a rally. However, smallcap stocks are also more volatile than midcap and bluechip stocks.

So, what should you buy?

It depends on your risk tolerance. If you are risk-averse, you should stick to bluechip stocks. If willing to take on more risk, you could consider midcap or smallcap stocks.

The comment section awaits your insights – what segment are you favoring in this dynamic market? Share your thoughts below.

Herd mentality is a phenomenon that often grips traders and investors, especially during market euphoria.

As the Nifty Metals index witnesses a robust rally, it becomes crucial for market participants to discern whether they should follow the herd or exercise caution.

In this article, I have highlighted crucial technical patterns that suggest a potential reversal in the prevailing bullish trend on the chart of the Nifty Metals index.

November saw the Nifty Metals index surge by an impressive 8.76%, and the momentum carried forward into the first half of December with an additional gain of 6% to ~7,500. While such gains may be enticing for many investors, it's essential to take a closer look at the technical aspects of the market to avoid succumbing to herd mentality.

Nifty Metals Index, Daily Chart

Source: TradePoint, Definedge

1. Bearish Harmonic Pattern:
   A bearish harmonic pattern is visible on the daily chart of the Nifty Metals Index. The bearish harmonic pattern indicates a potential reversal in the ongoing uptrend. The harmonic patterns help to identify key turning points in the market.

2. Bearish Meeting Lines Candlestick Pattern:
   The bearish meeting lines candlestick pattern is another noteworthy signal on the chart. This pattern occurs when two consecutive candlesticks have almost the same closing prices but differ in their overall trend. In this case, the bearish meeting lines pattern suggests a potential shift in sentiment from bullish to bearish.

3. Doji Candlestick Pattern:
   The appearance of a Doji candlestick on the chart adds another layer of complexity to the analysis. A Doji occurs when the opening and closing prices are virtually the same, signalling indecision in the market. In the Nifty Metals Index context, the Doji pattern may indicate a struggle between buyers and sellers at the highest levels, potentially heralding a reversal.

To sum up, with the recent bullish run in the Nifty Metals Index, investors must exercise prudence and not blindly follow the crowd. The presence of bearish harmonic patterns, bearish meeting lines candlestick patterns, and Doji candlestick patterns on the daily chart suggest the potential exhaustion of bullish momentum. Traders and investors should consider these technical signals and conduct further research before making investment decisions.

Here is the list of stocks trending around the Ceiling of Darvas Box on an hourly chart. This is generated using Darvas Box scanner.

Prices are reflecteing on the TradePoint desktop app while on RZone; it will be solved in the following software updates. Sorry for the inconvenience.

@Ritesh Badai Team is working on it.

@OMESH YADAV
Risk-Reward Ratio is a measure of the potential profit compared to the potential loss in a trade. It is calculated by dividing the potential reward (profit) by the potential risk (loss). Anything above 2 is considered good.

Expectancy is a measure of the average amount of profit or loss that can be expected per unit of risk over a series of trades. A positive value implies that, on average, each trade contributes positively to the account balance. The higher the positive expectancy, the better.

@Krushnakumar Rathi Will check sir.

Stock List - 9th December 2023

@Sugapriya Thimma As the data date changes, the back testing results will change for any strategy.

@Rajeev Talasikar You can use any based on your trading style.

I would prefer daily to catch momentum in bullish stock while weekly will give you emerging medium-term trend.

How do you find trading stocks when markets are trending at an all-time high?

A trader is constantly in fear of the downside when the market is trading at an all-time high, like the rally we witnessed this week.

There are a few questions in his mind:

1. The market is overheated, should I buy now?
2. What if the market retraces or reverses from the current level?
3. The stop-losses are deep, is it the right time to enter the market?

All these questions might be in your mind too, right?

It's always difficult to catch the running markets, be it bullish or bearish. As Paul Tudor Jones said, “The meat is not in the middle of the trend but it is when you catch tops and bottoms.”

He is Paul Tudor Jones - a successful trader, but catching tops and bottoms is not everyone’s cup of tea.

Some traders wish to play the momentum and catch the trend as much as they can.
For them, this is one study you should look at – it is Darvas Box.

The Darvas Box is a technical analysis tool used in stock trading by Nicolas Darvas, a dancer turned self-taught investor. Darvas achieved significant success in the stock market during the 1950s, and he detailed his trading methods in his book, "How I Made $2,000,000 in the Stock Market."

The Darvas Box visually represents price movements and helps traders identify potential breakout and breakdown points. The method is based on the idea that stocks tend to trade within a specific range before making a significant move. The key components of the Darvas Box include:

1. Box Formation:
Darvas identified a stock trading in a narrow price range, forming a box on the price chart. This box is created by drawing horizontal lines at the upper and lower boundaries of the recent trading range.

2. Volume Confirmation:
Darvas also paid attention to the volume associated with the stock's price movements. He believed that a breakout or breakdown from the box should be accompanied by increased volume, confirming the move's strength.

3. Buy Signal:
Darvas would initiate a buy position when the stock's price broke out above the upper boundary of the box, and this breakout was confirmed by higher-than-average trading volume.

4. Stop-Loss Placement:
To manage risk, Darvas set a stop-loss just below the lower boundary of the box. He would exit the trade to limit losses if the price fell back into the box, indicating a potential false breakout.

5. Trailing the Box:
As the stock price continued to rise, Darvas would adjust the upper boundary of the box to capture the ongoing trend. This allowed him to ride the upward momentum while protecting profits by adjusting the stop-loss.

6. Sell Signal:
Darvas would sell his position when the price fell below the lower boundary of the box on increased volume, signalling a potential reversal or breakdown.

It's important to note that while the Darvas Box method gained popularity and has been used by some traders, it is not foolproof. Like any trading strategy, it comes with risks, and market conditions can change.

Traders should consider using the Darvas Box as part of a comprehensive trading plan and incorporate risk management techniques to enhance their chances of success.

At Definedge, we believe in simplifying the trading experience with our unique trading platforms, Trade Point and RZone.

We have an inbuilt Smart Scanner to filter the stocks at the ceiling or break out of the Darvas Box.

Ceiling:
The ceiling, also known as the "top" or "upper boundary," is the highest price level a stock reaches within a specific period. In the context of the Darvas Box, the upper limit of the price range forms a box on the chart.

Breakout:
The breakout occurs when the stock's price moves above the upper boundary or ceiling of the Darvas Box. This is a crucial event for traders following the Darvas method, as it signals a potential upward trend and an opportunity to enter a long (buy) position.
While using a scanner, the user needs to select the breakout stocks or stocks on the verge of breakout (ceiling).

Here is how you can go to the Darvas Box scanner.

The sample result from the scanner is attached from the group of NSE All Indices.

Source: Tradepoint, Definedge Securities

If you use the Darvas Box scanner, share your experience in the comment below.

@RAGUNATH_AG Will check sir.

@Deven Shah Yes it works on any stock. You can even backtest the performance of each stock.

@RAGUNATH_AG It's already there in the Public condition.

Nifty50 was just an example to highlight. You can select any group or your group.

We have an inbuilt scanner for Entry and Exit in RZone Scanners, you can explore it.

Re: Vriddhi Strategy {Long Only}

As promised, we have added Vriddhi Scanner to our Candlestick Scanners in RZone.

@Somen Sangani Not yet.

The primary objective of the Vriddhi strategy is to identify and capitalize on bullish opportunities in the stock market. The strategy focuses on stocks in a bullish trend by meeting two critical criteria: being above their long-term 200-Day Exponential Moving Average (200DEMA) and signalling bullish momentum through a positive crossover of the Adaptive Relative Strength Index (ARSI).

Here is the backtesting result on the current Nifty50 stocks:

Source: Definedge Scanner

This scanner will be available soon to existing Definedge Securities users.

@PRANAV GULABANI Yes they do.

Check ICICI Bank Weekly chart on the same Super Trend parameters. Also check similar structure on Axis Bank when it was around 930.

@Vishal Shah Will check with Team and update.

@Sharad Girad Soon Sir....Patience is the key to ride the trade

Re: My Indicator Signals Hurdle at 20366 on Nifty

Human psychology is inherently inclined to adapt to acquired knowledge, and this inclination is equally applicable to traders.

In my 17 years of engagement with thousands of traders, each on their quest for the holy grail. If you're one of those traders relentlessly looking for that perfect strategy, then DON'T READ THIS ARTICLE.

The technical analysis arsenal is vast, comprising thousands of patterns and hundreds of indicators. Over the years, I've learned that the key to success lies not in mastering every tool available but in carefully selecting a few that align with your unique trading style.

Before filtering through indicators, it's imperative to grasp the fundamental aspects of each. This foundational knowledge serves as the bedrock upon which successful trading strategies are built. Read for free on pattern and indicators here

On the weekend, I shared insights into the modification of the Super-Trend indicator's period, pinpointing a resistance zone at 20,366. You might have been intrigued by the seemingly arbitrary numbers 5 and 13. I addressed the 'why' behind these choices, but the true beauty of the Super Trend lies in its remarkable adaptability to ever-changing market conditions.

Here is an updated chart of Nifty - Weekly.

Reflecting on the past week, which concluded on a high note with Mumbai's bars abuzz with stock market traders, I was celebrating too .

The 5-week Super Trend prominently signalled resistance at an all-time high (ATH). Did you sense something suspicious in the air?

We humans always love the good things, but sometimes the role of devil's advocate is important too and that was played by my 5-week Super Trend.

Historically, whenever the index breaches the 5-week and 13-week Super Trend range, the ensuing trend mirrors the intensity of Vin Diesel driving in Fast & Furious.

The journey through the complexities of trading has taught me the importance of adaptability and the selective mastery of tools. Instead of chasing the unattainable holy grail, focus on understanding the fundamentals of indicators and customizing them to suit your individual preferences.

If you have read this, You didn't miss Adani

Re: Emerging Trend on Adani Stocks – Says our Exclusive Indicator

Options trading involves buying and selling financial contracts known as options. Options give you the right, but not the obligation, to buy or sell an underlying asset (such as stocks) at a predetermined price before a specified expiration date. There are two main types of options: call options and put options.

With more than 180 million users, ChatGPT is valuable for theoretical knowledge. However, when engaged in trading, practical knowledge holds equal significance. Let's begin by examining the information provided by ChatGPT.

Here's a basic overview of how options trading works:

1. Understand the Basics:
   Call Option: This gives you the right to buy the underlying asset at a specified price (strike price) before the expiration date.
   Put Option: This gives you the right to sell the underlying asset at a specified price (strike price) before the expiration date.

2. Learn Key Terms:
   Strike Price: The price at which the option can be exercised.
   Expiration Date: The date when the option contract expires.
   Premium: The price you pay to buy an option contract.
   Option Holder (Buyer): The person who buys the option.
   Option Writer (Seller): The person who sells the option.

3. Choose a Brokerage:
   You need to open an options trading account with a brokerage that offers options trading. Make sure to choose a reputable and reliable broker. At Definedge Securities, we care for our clients.

4. Educate Yourself:
   Before you start trading options, it's essential to educate yourself. There are numerous resources, including online courses, books, and tutorials, that can help you understand the complexities of options trading.

5. Risk Management:
   Options trading can be risky, and managing your risks is crucial. Set a budget for your options trades, use stop-loss orders, and diversify your portfolio.

Remember, options trading involves significant risk, and it's important to only invest money you can afford to lose. If you're unsure or new to options trading, consider consulting with a financial advisor or mentor for guidance.

That’s interesting points to learn THEORITICALLY. What about practical stuff?

At Definedge, our emphasis lies in imparting both theoretical and practical knowledge. While ChatGPT can provide extensive academic education akin to a bookworm, venturing into the trading realm demands a reasonable understanding.

Recently, our Options Mentor, Abhijit Phatak, wrapped up a session on Options Trading during the weekend. We're pleased to note that participants express satisfaction and actively share charts within our WhatsApp group.

To enhance your learning experience, you can access insightful videos from our mentors at https://www.definedgesecurities.com/products/insight/.

For exclusive insights, kindly login using your Definedge Securities client code.

Combining theoretical knowledge with practical insights is vital to empowering individuals on their trading journeys.

Do share your experience with trading options?

Market are opening with gap-up and you may be confused what to buy, right?

We at Definedge always streamline and ease trader's journey to find the stock. You can use this scanner to find the most outperforming Sector or Stocks. Let's understand about the scanner.

What is Eagle Price and RS Scanner?
Eagle scanner is a combination of multiple scanners related to P&F patterns, RS patterns and 52-week high low. Scanner output shows below mentioned things.

DTB and DBS levels as well as distance from current price. DTB stands for P&F Double top buy pattern and DBS stands for P&F Double bottom sell pattern.
P&F Setup and Pattern counter Trend ratio is calculated on 0.25%, 1% and 3% box-values.
Total price performance and ranking score of Fusion matrix (Calculated on default multiple box-values)
Total RS performance and ranking score of Fusion matrix (Calculated on default multiple box-values)
52-week high and low price of the security
Current retracement percentage from the 52-week high and low of the security

More bullish (positive) scores and near its 52-week high is a bullish pattern. More bearish (negative) scores and near its 52-week low is a bearish pattern.

I ran the scanner on NSE Sectors and found this result which will help me in identifying the sectors to invest. You can scan more on to the following sector to find the stocks.

*Data as per closing of 1st December 2023.

If you are the Definedge customer, you can find this scanner in our premium segment.

@Yogesh Vinayak Joshi Default - 3

@Ilyas Shaikh Good to know you are following it. And yes, SIP is the best approach to long-term investing.

The pro version offers advanced features such as scanners and indicators, streamlining your trading experience.

Visit here to know more about Premiun features: https://www.definedgesecurities.com/products/rzone/

It’s jashan on D-street as the Nifty achieved an all-time high, hitting records of 20,291 that have left many traders optimistic.

According to my trading system, the level of 20,366 might pose a significant hurdle in the upcoming week.

For Trend Traders, the Super Trend indicator is an indispensable tool in their arsenal. What sets it apart is its ability to factor in market volatility when determining trends. This results in a smoother and more effective trend-following indicator than traditional methods.

To read more about Super Trend, Click here https://www.definedgesecurities.com/library/super-trend/

Let’s understand how the Super Trend works in the current Nifty scenario

Source: TradePoint

The default period for Super Trend is set at 10 periods. However, my preference leans towards a 13-period setting for medium-term analysis and a 5-period setting for short-term insights.

Why these specific numbers? The rationale is quite simple – both 13 and 5 are Fibonacci numbers, chosen for their unique mathematical properties that align well with market dynamics.

As of now, the 13-period Super Trend is highlighting a bullish trend, signalling positive sentiments in the medium term. But, the 5-period Super Trend is pointing to a potential resistance level at 20,366. If bulls manage to breach this level, it could trigger a rapid and forceful rally in the market during the upcoming week.

Ending the Year on a High Note:
The indication of a potential breakout above 20,366 implies that the Nifty might be wrapping up the year on a high note. The market's reaction to this resistance level will likely set the tone for the beginning of the new year, shaping trading strategies for the months ahead.

As we are in the last month of 2023, What levels can we expect on Nifty?
Share your predictions in the comments below.

Stock List - 2nd December 2023

@Shashank Jain Yes

@Shashank Jain There are many stocks; I just highlighted this to explain the system on how it performs on multiyear breakouts.

Currently, we only offer IPOs listed on the NSE. The two missing IPOs are for the BSE and are not yet available on RZone.

The Laidback Strategy has gained significant traction among Definedge users, and I am writing here to share new opportunities that align with this strategy.

A recent video highlighted the successful application of the Laidback Strategy on Suzlon over the past decade.

You can watch both videos by clicking here: Video1 Video2

Now, we've identified three stocks that meet the strategy's entry criteria:

1. HeroMotoCorp - The leading motorcycle manufacturer

2. Bosch Ltd - A global leader in automotive technology

3. IOC Ltd - A prominent player in the oil and gas sector

To effectively scan for Laidback Stocks, follow these simple steps:

Go to RZone > Scanners > Candlestick Scanner > Select your Markets and Groups > In Conditions, Select Public > Find "The Laidback Strategy (Entry)" > Change Time Frame to Weekly

This scanner is exclusively available in Trade Point and RZone.

Remember, the Laidback Strategy is designed for long-term investors seeking stocks with the potential for steady growth and minimal risk. By carefully evaluating these potential Laidback Stocks, you can make informed investment decisions that align with your risk tolerance and financial goals.

TradePoint desktop has a feature oof Auto Refresh while the RZone scanner doesn't. That may be the reason for the difference in the stock list.

As we are on the last day of November, the Nifty has experienced a gradual reversal, moving from 19,000 to 20,000. The monthly high and low levels are crucial from a chartist's perspective.

Technical analysis is an influential tool traders use to make informed decisions based on historical price data and market trends.

While daily and weekly charts are commonly used, monthly charts have a special significance, providing a broader perspective for traders and investors.

Let’s understand the importance of monthly closing prices and chart patterns, exploring how they can be leveraged for effective decision-making.

Importance of Monthly Closing Prices:
Monthly closing prices play a pivotal role in technical analysis as they offer a longer-term view of market trends, helping traders identify significant price levels and potential reversal points. The closing price reflects the consensus of market participants over an entire month, smoothing out short-term fluctuations and noise. This provides a more reliable signal for traders looking to make strategic decisions.

Chart Patterns on Monthly Charts:
Chart patterns on monthly charts can offer valuable insights into the market's overall direction. Identifying the patterns on a monthly chart provides a more reliable signal due to the extended timeframe, reducing the impact of random price movements.

Traders suited for Monthly Charts:
Monthly charts are particularly beneficial for long-term investors, position traders, and those looking to ride major trends. Swing traders can also use monthly charts to confirm the broader trend before executing shorter-term trades. The monthly perspective helps filter out noise and focus on the primary market direction.

Interpreting Support and Resistance with Monthly Highs and Lows:
Support and resistance levels are critical in technical analysis, indicating potential turning points in the market. Monthly highs and lows offer robust support and resistance levels due to the extended timeframe. Here's how to interpret them:

1. Monthly Highs as Resistance: If the price struggles to surpass a previous monthly high, it indicates strong resistance. Traders should watch for potential reversals or corrections when approaching these levels.

2. Monthly Lows as Support: Conversely, if the price consistently bounces off a previous monthly low, it suggests strong support. Traders can look for buying opportunities when prices approach these levels.

3. Breakouts and Breakdowns: A breakout above a significant monthly high or a breakdown below a monthly low can signal a change in trend. This is a powerful indication for traders looking to capitalise on significant market movements.

To sum up, incorporating monthly closing prices and chart patterns into technical analysis provides traders with a more comprehensive and reliable perspective on market trends. The extended timeframe of monthly charts is especially valuable for long-term investors and position traders. By interpreting support and resistance levels using monthly highs and lows, traders can make well-informed decisions and navigate the markets more confidently.

If you are trading by looking at the monthly levels on charts, write about the strategy in the comment section so like-minded traders can benefit from it. If you are uncomfortable to write, we can write for you. You need to DM me in the chat section.

Explore the Latest Buzz with Definedge Securities on the "What's Trending" Page!

We're thrilled to announce the launch of our brand-new "What's Trending" page, your go-to destination for the hottest market trends and insights!

Make sure to add this page to your daily routine because you want to experience everything interesting happening in the dynamic world of finance. Stay ahead of the curve, discover emerging opportunities, and keep your finger on the market pulse.

https://www.definedgesecurities.com/blog/category/whats-trending/

@Neha V Video will be out soon....Stay Tuned

The "Unusual Volume Activity" indicator is a tool used in trading to identify significant increases in trading volume for a particular financial instrument, such as stocks or options.

Trading volume refers to the total number of shares or contracts traded during a given period. Unusual volume typically occurs when there is an unexpected surge in trading activity, often indicating increased interest or attention from market participants.

Traders and investors pay attention to unusual volume because it can suggest potential changes in market sentiment or the initiation of a new trend. But it is difficult to check each and every stock and we at Definedge have solved this problem.

Before we explain how to find such stocks let's understand the "Unusual Volume Activity" indicator and how traders might use it:

Understanding Unusual Volume:

1. Baseline Volume:
   Before identifying unusual volume, traders establish a baseline or average trading volume for a particular asset. This baseline is usually determined over a specified time frame, such as a day, week, or month.

2. Detecting Deviations:
   Unusual volume is identified when the current trading volume deviates significantly from the established baseline. The magnitude of the deviation is subjective and depends on the trader's chosen parameters.

How to Trade Based on Unusual Volume:

1. Confirmation with Price Movement:
   Unusual volume is most meaningful when accompanied by a notable price movement. For example, a significant increase in volume coupled with an upward price movement may signal bullish sentiment. In contrast, the same volume increase with a downward price movement could indicate a bearish sentiment.

2. Breakout Confirmation: - Traders often use unusual volume as a breakout confirmation tool. If a stock breaks out of a key resistance level on high volume, it may suggest strong buying interest, reinforcing the likelihood of a sustained uptrend.

3. Contrarian Indicators:
   In some cases, extreme levels of unusual volume may be viewed as a contrarian indicator. For instance, a massive surge in volume after a prolonged uptrend could signal exhaustion and the possibility of a reversal.

4. Risk Management:
   Traders should implement proper risk management strategies when acting on unusual volume signals. Just because the high volume doesn't guarantee a particular price movement and unexpected events can occur.

5. Watch for News Catalysts:
   Significant news events, earnings releases, or other market-moving information may trigger unusual volume. Traders should be aware of potential catalysts driving the increased activity.

Scanner in Trade Point and Zone

Definedge Zone and TradePoint, traders can access a powerful tool through the OHLC Scanner. This versatile scanner caters to various timeframes such as Intraday, Daily, Monthly, and Weekly charts. The scanner provides a comprehensive view of Open, High, Low, and Close prices over these timeframes, allowing traders to assess price dynamics effectively.

For instance, the 60-minute scanner captures price movements within each hour. Combined with the Unusual Volume Activity indicator, it becomes a potent tool for identifying short to medium-term trading opportunities. Here is the stocklist from the scanner on the candle closed at 10:15 am.

Are you using this scanner? If yes, write your experience in the comment below.

@Ilyas Shaikh Yes sir

Charlie Munger, the Vice Chairman of Berkshire Hathaway and longtime business partner of Warren Buffett, is renowned for his wisdom, wit, and insightful approach to investing and life.

With a heavy heart, we bid farewell to one of the finest financial minds of our time, Mr. Charlie Munger at the age of 99.

Charlie Munger's legacy extends far beyond the balance sheets and market dynamics. His keen intellect, multidisciplinary thinking, and unwavering principles have shaped the way we approach not just investments, but life itself. He was more than a financial wizard; he was a mentor to countless aspiring minds, a beacon of rationality in a world often driven by speculation.

Do you know Charlie Munger's investing style?

1. Value Investing:
Like Warren Buffett, Munger is a proponent of value investing. This involves identifying undervalued companies with strong fundamentals and holding them for the long term. The focus is on the intrinsic value of a business rather than short-term market trends.

2. Quality Businesses:
Munger emphasizes the importance of investing in high-quality businesses with durable competitive advantages. Such companies, often referred to as "moats," have a strong market position that protects them from competition and allows them to generate consistent returns over time.

3. Long-Term Perspective:
Munger's investing style is characterized by a long-term perspective. He believes in the power of compounding and favors investments that can grow steadily over many years. This patient approach aligns with the idea of holding onto quality businesses through market ups and downs.

4. Conservative Investing:
Munger and Buffett are known for their conservative approach to investing. They prefer businesses with a history of stable earnings, strong management, and a track record of prudent capital allocation.

5. Concentrated Portfolio:
While diversification is a common strategy for reducing risk, Munger and Buffett take a different approach. They believe in concentrating their investments on a few businesses they thoroughly understand. This strategy requires in-depth research and a high level of conviction in their investment choices.

Here are some key lessons to learn from Charlie Munger:

1. Multidisciplinary Thinking:
   Munger emphasizes the importance of being well-versed in various disciplines. He advocates for a broad mental model incorporating insights from multiple fields, including psychology, economics, physics, and biology. This multidisciplinary approach helps in making more informed and nuanced decisions.

2. Circle of Competence:
   Munger advises investors to operate within their "circle of competence." This means sticking to areas where you have expertise and understanding. It's about knowing your limitations and not venturing into complex areas you don't understand. This principle aligns with Warren Buffett's famous saying, "Risk comes from not knowing what you're doing."

3. Invert, Always Invert:
   Munger often suggests solving problems by thinking backward. Instead of focusing on how to achieve success, consider what might lead to failure. By inverting the problem, you can uncover hidden risks and avoid potential pitfalls. This approach is a cornerstone of Munger's critical thinking process.

4. Lifelong Learning:
   Munger is a strong advocate for continuous learning. He believes in developing a latticework of mental models over time. Reading extensively and learning from various sources contribute to intellectual growth and better decision-making.

5. Independent Thinking:
   Munger encourages individuals to think independently and avoid being swayed by popular opinion. Being a contrarian thinker can lead to unique insights and opportunities that the crowd may overlook. This aligns with Buffett's advice to "be fearful when others are greedy, and greedy when others are fearful."

6. Patience and Temperament:
   Munger stresses the importance of patience in investing. He believes in waiting for the right opportunities and not being swayed by short-term market fluctuations. Additionally, maintaining emotional discipline and a calm temperament are crucial for long-term success.

7. Avoiding Cognitive Biases:
   Munger is known for his deep understanding of human psychology and the impact of cognitive biases on decision-making. He advises investors to be aware of these biases, such as overconfidence and confirmation bias, and work to minimise their influence.

In summary, learning from Charlie Munger involves adopting a multidisciplinary approach, staying within one's circle of competence, thinking independently, and practising patience in investing and life. His investing style, closely aligned with Warren Buffett's, emphasises value, quality, a long-term perspective, and a concentrated portfolio of carefully selected businesses.

The book Munger, The Complete Investor and Poor’s Charlie Almanack is a must-read.

RIP The Legend Charlie Munger

Adani Group stocks as they surge with bullish momentum, triggered by the recent Supreme Court development in the Adani-Hindenburg case. As of 10:00 am, Adani Stocks dominates the Top 10 gainers for the day, showcasing a promising start.

Source: Rzone, TradePoint

Our Leading Indicators Says.....
Our cutting-edge proprietary indicator, the Adaptive RSI, points towards a renewed bullish wave across most Adani Stocks. Exclusively available to our Definedge clients in the indicator section, this tool sets the stage for informed investment decisions. Signup here for Definedge Securities

We're thrilled to offer our existing Definedge clients to access to this exclusive indicator. Elevate your trading experience – it's available now in the indicator section.

Let's dissect the charts of Adani Enterprises (top left), Adani Ports (top right), Adani Green (bottom left), and ATGL (bottom right).

Observe the two lines on the chart? That's the Adaptive RSI (ARSI) indicator, a unique feature available only on TradePoint. Ready to leverage this powerful tool for your trades? Just open an account with us.

The ARSI isn't your typical indicator – it factors in both momentum and volatility in its calculations. A bullish crossover coupled with widening indicates the emergence of a strong bullish trend, and it's unfolding in Adani Group stocks. Seize this opportunity, as highlighted by our distinctive indicator.

Don't miss out on the potential gains – ride the Adani wave with confidence and TradePoint's exclusive Adaptive RSI indicator.

Note: We are highlighting the emerging trend, as signalled by the indicator, and this should not be considered as a recommendation.

@Subramanya Joshi In the public library, the scanner is named Laidback Strategy.

@Gaurav Garg Yes you can take entry if you have missed it.

Request you to watch the first video too.

Thanks for reading.

As the curtains draw on 2023 with 35 days to go, the stock market arena has witnessed a riveting performance, with PSU Banks emerging as the unsung heroes on D-Street.

The Performance in 2023, so far...
The twists and turns with the impressive gains of 15% on the Nifty PSU Bank Index leave its counterpart the Nifty Private Bank in the dust with a mere 4% gain.

Buckle up as we dissect the trendline breakout on the Nifty Private Bank/Nifty PSU Bank ratio chart and uncover the potential for short-term reversals as the year concludes.

Investors and traders should keep an eye on the ratio chart of Nifty Private Bank/Nifty PSU Bank, showcased in the chart section of TradePoint, to decipher the potential market shifts.

Trendline Breakout: A Game-Changer in the Making
The ratio chart doesn't lie, and a conspicuous trendline breakout signals a potential reversal in the short-term trend.

As we approach the tail end of 2023, this breakout becomes a critical focal point for investors looking to capitalize on evolving market dynamics. The breakout means the Nifty Private Bank will likely outperform Nifty PSU Bank.

Market Elephants vs. Tom and Jerry: A Metaphor for Movement
In finance, the analogy of market elephants and nimble midcap/small-cap players as Tom and Jerry holds when the trend begins. Larger market-cap Private Banks as elephants here, exhibit a slower pace of movement than their more agile counterparts like PSU Banks, who are into midcaps and small-cap baskets. Midcap and Small Cap Bank's Performance in 2023 has surprised many investors.

The Green Line Conundrum: Short-Term Surge or Long-Term Victory?
A green line on the ratio chart marks the initial level where Private Banks could potentially take the lead. However, it's crucial to understand that this scenario is a short-term view. Meanwhile, the long-term chart continues to favour PSU Banks, indicating a sustained trend of outperformance.

TradePoint: Your Gateway to Market Insights
For those eager to dive deeper into the numbers, TradePoint emerges as the go-to platform. The chart section on TradePoint hosts the ratio chart, offering a visual representation of the market tides and helping traders make informed decisions based on real-time data.

Indian investors have embraced Mutual Funds, particularly through Systematic Investment Plans (SIPs), showcasing disciplined investment strategies. The Indian Mutual Fund Industry has experienced remarkable growth, with the Assets Under Management (AUM) reaching ₹46.72 trillion as of October 31, 2023, witnessing a more than 5-fold increase in the past decade from ₹8.34 trillion in 2013.

Opportunity Spotlight: Kotak Healthcare Fund (NFO):
I wish to bring attention to an exciting investment opportunity in the healthcare sector through the ongoing New Fund Offer (NFO) of Kotak Healthcare Fund. The healthcare sector is showing promising signs of a bullish trend as highlighted by the charts utilizing a top-down approach to support this claim. Click here

1. Nifty Monthly Chart:

The Nifty Monthly Chart reveals a compelling rising three-candlestick pattern, signalling the resumption of a bullish trend. This pattern, occurring on a monthly timeframe, suggests a long-term breakout, making investments in mutual funds a prudent choice.

The rising three-candlestick pattern is a bullish continuation pattern that consists of a long bullish candle, followed by three smaller bearish candles, and concluded with another long bullish candle. This pattern indicates a brief consolidation before the prevailing uptrend resumes, affirming a potential long-term bullish trajectory.

2. Nifty Weekly Chart:
The Nifty Weekly Chart provides additional confirmation of the bullish trend, with two significant candlestick patterns:

a. Bullish Engulfing:
- A bullish engulfing pattern occurs when a small bearish candle is followed by a larger bullish candle that engulfs the preceding one.
- This signals a shift in market sentiment from bearish to bullish, often indicating the start of an upward trend.

b. Three White Soldiers:
- The three white soldiers pattern consists of three consecutive long bullish candles, reflecting a strong upward momentum.
- This pattern is a robust indicator of a bullish reversal, suggesting a potential trend change from bearish to bullish.

Investment Platform: Definedge Securities:
At Definedge Securities, our commitment is to educate and empower our clients to make informed investment decisions. We offer a comprehensive investment platform, including a dedicated Mutual Fund Zone with advanced charting tools such as Point and Figure charts. This unique feature enables investors to conduct in-depth research on various Mutual Funds before making investment decisions.

The Nifty Monthly and Weekly Charts analysis strongly suggests the resumption of a long-term bullish trend. The ongoing NFO of Kotak Healthcare Fund presents a compelling opportunity to invest in a sector poised for significant growth.

Definedge Securities is pleased to provide our customers with a platform that facilitates thorough research and informed decision-making. To seize this opportunity in the healthcare sector, investors can consider the Kotak Healthcare Fund NFO. Click here to explore and invest.

*Note: Investors are advised to conduct their due diligence and consult with financial advisors before making investment decisions.

This week, the stock market lacks strength ahead of a long weekend on account of Guru Nanak Jayanti on Monday. The Indian benchmark index Nifty and Sensex stay within a narrow range, concluding close to their previous closing value.

Attention and investments appear to be directed towards Tata Technologies, the latest IPO from the Tata Group, drawing funds from the secondary markets.

Following our Fundamental expert's @Prasiddh-Shroff in-depth analysis of the ongoing IPO, Technical expert @Mangesh-Joglekar emphasized the chart setup of the Tata Group 25 Cap, suggesting a breakout. The Definedge post seems to have gained significant traction , evidenced by the 53 times subscription by 3 pm today.

Source: [https://www.chittorgarh.com/ipo_subscription/tata-technologies-ipo/1418/](link url)

Are you still planning to subscribe?

If you wish to subscribe, click on https://ipo.definedgesecurities.com/ongoingipo

Read the detailed report by Prasiddh here: https://insight.definedgesecurities.com/research/tata-technologies-ipo-notes/

To refer chart by Mangesh, Click here https://forum.definedgesecurities.com/topic/1112/tata-25-cap-index

Yes Sachinji.

We have created scanner of this system.

Second part of video will be out on 25th November, do watch that too.

Interesting chart setup @Mangesh-Joglekar

On the Candlestick chart, the index has formed a 3C Pullback - Bullish pattern, and resuming the northward journey indicates the strength in the index.

Not only the Nifty Auto Index but also the Healthcare and Pharma sector indexes are forming the same candlestick pattern. I found this using the Scanner feature of the Zone App of Definedge.

Heard this pattern for the first time? Read about the pattern here https://www.definedgesecurities.com/trading-strategies/3c-pullback-pattern-trading-strategy-on-candlestick-chart/

We're excited to share some updates and an exclusive offer with our esteemed forum community.

As many of you know, I have been consistently posting the stocks list related to the Laidback Strategy on the Definedge Telegram group since its recording in May 2023. Watch the strategy video here https://www.youtube.com/watch?v=opYHnfDP6l8&t=76s

Now, as part of Definedge, we will be sharing the stocks list on our forum: https://forum.definedgesecurities.com

Why should boys have all the fun?
The Laidback Strategy has proven to be quite rewarding for many as markets are trending bullish, and we hope all our forum members are enjoying the benefits. Now, we encourage you to spread the wealth of knowledge by sharing this strategy with your friends and family so that they can have some fun too.

Our forum is open to everyone, and we invite you to register to actively participate in discussions and seek clarification on any queries you may have.

Returning to the Laidback Strategy, @AP and I have recorded a new video to address some of the commonly asked questions:

1. Navigating a bull market: How to choose among the 3-5 stocks in the scanner every week?
2. A case study on a stock that remained stagnant for years but signalled a buy after 15 years, showcasing remarkable performance.
3. Insights into the Laidback Strategy applied to trending stocks like JP Power and Idea.
4. A detailed explanation of pyramid strategy, a topic many of you have expressed interest in.
5. An enhanced EXIT criteria featuring a unique indicator available exclusively in Trade Point and RZone by Definedge.

And now, for our forum users, we have a special surprise! We are offering you 24-hour early access to the upcoming video.

You just need to bookmark this article and comeback on November 25th, 2023, at 11 am; the video will be published exclusively for you. It will be available to the general public on November 26th, 2023.

If you received this link from a friend, we invite you to register and join us for exciting offers and enriching learning experiences.

Thank you for being a valued member of our community. We look forward to your active participation and hope you enjoy the exclusive early access!

Related article on Laidback Strategy https://forum.definedgesecurities.com/topic/810/why-i-trust-my-laidback-strategy

Tata products, from humble toothbrushes to luxurious linens, have become an integral part of our daily lives. This legacy traces back to 1868 when the visionary Late Shri Jamsetji Nusserwanji Tata established the Tata Group with a modest investment of Rs.21,000 in Mumbai, India's financial hub.

I am a book reader and would urge everyone to read the book "The Tata Group - From Torchbearers to Trailblazers" which will take you to the history of Tata Group and how they built this empire in the 150 years.

Today, Tata Group presents an enticing investment opportunity for savvy investors – the Initial Public Offering (IPO) of Tata Technologies. This venture, aiming to raise Rs. 3,042.51 crores, marks the group's triumphant return to the IPO arena after a 19-year hiatus.

Tata Technologies, a leading player in the Engineering Research and Development (ER&D) sector within the automotive domain, is poised to revolutionize the future of mobility. This IPO offers a unique opportunity for investors to become stakeholders in this dynamic and innovative company.

As an investor, you might be contemplating this investment's viability and potential profitability. Rest assured, Definedge cares for its clients.

Our expert analyst, @Prasiddh-Shroff , has written a comprehensive report encompassing the industry landscape, a company SWOT analysis, and insightful company's global offerings. This report empowers you with the knowledge to make informed decisions and confidently navigate the investment realm.

To access this valuable report, log in with your Definedge Securities client code and password. Click here https://insight.definedgesecurities.com/research/tata-technologies-ipo-notes/

Whether you've been a loyal consumer of Tata products or are a seasoned investor seeking a promising opportunity, now is the time to explore the potential that Tata Technologies' IPO brings to the table.

Thanks Everyone

@RAGUNATH_AG Gald you liked it.

The early signs of TCS outperforming HDFCBANK are on the cards, and indications suggest that this trend might persist for the upcoming quarters. As market dynamics evolve, it becomes crucial for investors to adapt and align their portfolios with emerging trends.

Source: TradePoint

A notable observation from the ratio chart update is the likelihood of the banking sector lagging while the IT sector takes the lead in performance. This paradigm shift prompts investors to reevaluate their holdings and consider a realignment towards sectors exhibiting more robust growth prospects.

Considering the emerging trends, investors are urged to turn their attention to TCS over HDFCBANK.

Are You Ready to Make the Swap?

Investing in the stock market is akin to navigating a labyrinth of opportunities and risks. It requires a keen eye for trends, an understanding of market dynamics, and the ability to decipher complex charts.

I recently met with my stock market friends on the weekend and discussed the cautious approach investors should take towards private banks.

Let me write my thoughts on analysis and the quest for the right investment moves.

Me: Hey there! Have you ever considered why some investors avoid private banks in their portfolios?

Trader Dost: Well, not really. I've always considered banks as a stable investment. What's the deal?

Me: It's interesting. I've been looking at the BankNifty/Nifty50 ratio chart, and it's telling me a compelling story.

Trader Dost: Ratio chart? What's that?

Me: It's a chart that compares the performance of two indices, in this case, BankNifty and Nifty50. Lately, the ratio has resisted at the breakdown level, suggesting that Nifty50 is gaining strength and outperforming BankNifty. Banking stocks weigh 36% in Nifty50 and if they underperform, other sectors may lead the Nifty higher.

Trader Dost: So, what does that mean for private banks?

Me: Well, the series of breakdowns and lower highs/lows indicate an underperformance of BankNifty compared to Nifty50. It might be time to switch out of banking stocks.

Trader Dost: How and where are you making this analysis?

Me: I'm using the TradePoint ratio chart, which allows me to add indicators like the Double-Moving Average of 50EMA and 200EMA. The Death Cross between these moving averages is a signal that BankNifty might underperform Nifty50.

Trader Dost: Death Cross? That sounds ominous. What is it?

Me: It's when the short-term moving average crosses below the long-term moving average, indicating a potential downward trend. In our case, it suggests an underperformance of BankNifty.

Trader Dost: Wow, that's a powerful analysis tool. Why haven't I used this before?

Me: Exactly! It adds more conviction to your analysis. I'm betting on this to guide my investment decisions.

Trader Dost: So, if not banks, where are you looking to invest?

Me: Funny you ask. I recently suggested selling HDFC Bank and buying TCS. If that pans out, it could support the theory of BankNifty underperforming Nifty50. Read here https://forum.definedgesecurities.com/topic/1042/buy-tcs-sell-hdfc-bank-a-sound-decision

Trader Dost: Interesting move. What's your take on this?

Me: I'd love to hear what others think. The comment section is open for discussions. What's your view on the current state of private banks and alternative investment options?

Trader Dost: I'm intrigued. I'll definitely share my thoughts. Let's keep the conversation going!

Making decisions about which stocks to swap within your investment portfolio is never a simple task. It involves careful evaluation of various factors, including past performance, future potential, and broader market trends.

Among the tools and techniques available to investors, one of the most insightful is ratio analysis. By assessing the relative performance of different assets through ratios, you can gain valuable insights that inform your stock-swapping decisions.
It's not just about what you buy or sell; it's also about when you do it.

Today, I am sharing a compelling strategy: Buy TCS - Sell HDFCBANK Bank

Understanding the Ratio Chart:
A ratio chart is a powerful tool that allows investors to assess the relative performance between two assets, making it easier to identify trends and potential investment opportunities. In our case, we'll focus on the TCS/HDFCBANKBANK ratio chart to help shed light on the decision to rebalance portfolios.

1. Higher Highs and Higher Lows:
The weekly ratio chart for TCS/HDFCBANK exhibits a fascinating pattern - the "higher high - higher low" structure. This structure suggests that TCS has consistently outperformed HDFCBANK over the given timeframe. In simpler terms, TCS's performance is on an upward trajectory compared to HDFCBANK, indicating that it might be time to reduce your portfolio's weight in HDFCBANK and consider reallocating those resources to TCS.

2. TCS/BANKNIFTY Ratio:
Another essential ratio chart to consider is TCS in comparison to the BANKNIFTY index. This ratio chart depicts a long-term rising trendline, hinting at the possibility of a reversal. In other words, it suggests that TCS is poised to outperform the broader BANKNIFTY index in the foreseeable future.

3. Impact on Sector Weightage:
HDFCBANK carries a substantial weight in the BANKNIFTY index. With a growing presence of the IT sector in the market, spearheaded by TCS, it's becoming increasingly clear that banking stocks, including HDFCBANK, may face competition. As the weightage of HDFCBANK decreases in the index, the influence of the IT sector is rising, and this transition has the potential to impact the overall sector dynamics.

Leveraging Ratio Charts on TradePoint:
The ratio charts in TradePoint and RZONE have made it easier for investors to make data-driven decisions. With these charts, you can compare various instruments, such as stocks, indexes, commodities, and bonds, to evaluate their relative performance.

Are You Ready to Make the Swap?
The question on every investor's mind is, "Are you prepared to transition from HDFCBANK Bank to TCS?"
The answer depends on your investment objectives, risk tolerance, and belief in the trends revealed by ratio charts. It's crucial to consult with your financial advisor before making any substantial changes to your portfolio.

We encourage you to share your thoughts and insights in the comments section below.