BUY TATA STEEL 2 LOTS ABOVE 1279 TG 1291/1303 SL 1266
BUY VOLTAS 2 LOTS ABOVE 1315 TG 1325/1335 SL 1303
BUY TATA CHEM 2 LOTS ABOVE 947.50 TG 952.50/957.50 SL 941.50
BUY TATA STEEL 2 LOTS ABOVE 1279 TG 1291/1303 SL 1266
BUY VOLTAS 2 LOTS ABOVE 1315 TG 1325/1335 SL 1303
BUY TATA CHEM 2 LOTS ABOVE 947.50 TG 952.50/957.50 SL 941.50
FOR DAILY LIVE MARKET INTRADAY TRADING TIPS JOIN NOW ON WHATSAPP 7772909587
Intraday trading is a riskier way of
investing money in the stock market and is very different from what investors
do in the stock market. As a beginner in intraday trading, it is important to
implement the basic and best strategies from the inside out to avoid any kind
of losses and make lots of profits in less time. A quick tip for beginners in
intraday trading is that it is important to invest only as much as you can
afford without disrupting your financial situation or conditions. In intraday
trading, the investor either makes good profits or good losses depending on how
well the strategies and fundamentals of the stock markets are used. One of the
best parts about intraday trading is how well it entices investors to take
advantage of price fluctuations. Invest and watch it; that's it. But if the
right strategies are not used and in the right way, intraday trading can result
in losses.
Momentum Trading Strategy
Market trading involves investing in the
right direction and momentum, and it's all about momentum trading strategy.
Investors choose the right stock before making a significant change in market
trends and invest accordingly. Stock selection is made easier with stock news
reports that can move the graph either up or down. An intraday trader role is
to study such news before the market is available for investment and then act
accordingly. An intraday trader needs to keep in mind that the data will either
rise or fall depending on the external factors and that a quick investment
decision needs to be made. Based on the speed of market direction, investors
can hold the security for minutes, hours, or all day. The momentum trading
strategy is great but requires speed in investing once the news breaks. In
addition, the holding period of the securities is entirely based on the
analysis of these market trends, which must be closely monitored on a daily
basis, provided that the right decision is made at the right moment.
Reversal Trading Strategy
One of the high and risky trading strategies, reversal trading is not for beginners. According to this strategy, the investments are made against the trends. With the calculations and analysis, the trade will bounce back and make a good profit. This strategy is not recommended for intraday beginners as it requires a lot of experience and knowledge of the market. Also, it's a difficult strategy because investors need to properly identify the pullbacks and their strengths. One of the supporting techniques in the reversal trading strategy is the daily pivot, which intraday traders use to focus on trading the daily low and high pullbacks.
Breakout Trading Strategy
When it comes to trading, timing is key, especially for intraday traders. In a breakout trading strategy, timing plays an important role in making a trading decision. It identifies the threshold points at which stock prices rise above or below the specified time. If the trend continues to push prices higher above the threshold point, investors will consider long positions and buy the stock. On the other hand, when prices fall below the threshold, the investor considers going short or selling the stock. The basic thought processing behind the breakout trading strategy is that when prices cross the thresholds, they become more volatile and continue the trend.
Gap & go trading strategy
Sometimes it's common to find stocks that have no premarket volume and open with a gap to the previous day. If the gap opens higher than the previous day, it is called the gap up, and if it opens lower than the previous day, it is called the gap down. Such situations arise when news acts as a catalyst. Intraday traders look for and bet on such stocks, believing that the gaps will close by the end of the day. This strategy is great for those who want short and quick wins but don't want a lot of risk.
A futures contract is a contract or agreement between two parties to conduct a transaction at a predetermined locked down price at some point in the future. It is essentially a bet on the prospects of a stock, one of the multiple financial trades you can perform. Two parties take opposing stances, with one agreeing to buy shares and the other agreeing to sell them at a certain price sometime later, irrespective of the prevailing market price then.
To illustrate, consider two trading entities A and B. A holds the view that the value of a stock would rise from its present value in the future while B believes the opposite. A and B enter into a contract with A agreeing to buy shares of the stock from B at the present price sometime in the future. If A’s bet comes true, that is, if stock value rises, A can get shares of the stock at a discounted price from B. Conversely, if the share value drops, B can sell shares to A at a premium, that is, at a value greater than the market price.There are 2 primary benefits to future trading - the leverage you receive, and the risk mitigation it offers.
Margins and leverage
Unlike buying equity, one needn't pay in full to buy futures. One need to only pay a percentage of the total contract value to buy or sell in futures. This percentage is called margin and varies between different stock futures. Thus you could buy/sell a lot more shares of futures than equity with a certain amount of money. For example, if the margin is fixed at 20% for futures in a stock, one could buy/sell 5x times more shares in futures than in equity. This ratio is called leverage. Thus, with 20% margin, the leverage is 5. Leverage is a double-edged sword. It multiplies profits manifold but also multiplies losses.
If futures in a stock has a leverage of 5, it means that profits would be five times than that of equity profits. If the equity returns a profit of 20%, the futures offer a return of 100% ( Futures profit percentage = Equity profit percentage*Leverage). This is possible because only a fraction of the price is paid to buy futures (margin). But losses would be equally magnified too. A 20% loss in equity would cause 100% loss in futures having a leverage of five.
Hedging against risks
Futures can be used to mitigate or hedge against systemic risk to investment in a single stocks or a portfolio of stocks. For single stocks, hedging can be done easily by selling futures at a higher price than the price at which equity was bought. The number of futures sold must be equal to the number of equity shares held by one. Thus, if prices fall, the profit from the selling order in stock futures would offset fall in equity value and vice versa. A fixed return is guaranteed and market fluctuations don't affect the returns. Futures can also be used to hedge against risks to investment in a portfolio of stocks.
Points to remember
There are some specific futures indices which include the following:
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BUY BRIGADE ABOVE 457 TG 463/469 SL 450
BUY RAYMOND ABOVE 713 TG 721/728 SL 705
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Markets got off to a buoyant start to the week, gaining
over a percent and a half continuing the prevailing recovery. After the flat
start, the benchmark gradually rose on healthy buying from banking and IT
majors, eventually ending around the daily high. Meanwhile, the broader indices
traded mixed, ending with modest gains. Bullish global signals coupled with
bargain-hunting among index majors are driving markets higher.
Markets will initially react to the inflation data in early trading on Tuesday.
Updates on prevailing geopolitical tensions and global market developments will
also remain in focus.Since Nifty has surpassed the critical hurdle at
16,800, it can extend the rebound to a 17,100+ zone. In case of any dip, 16700
would act as immediate support. Meanwhile, participants should maintain their
focus on sector/stock selection.
SUPPORT: 16709,16508,16206
RESISTANCE:17011,17112,17414
INFY FUT 1st TARGET ACHIEVED @ 1867 BUYING CALL GIVEN FROM 1852 BOOKED PROFIT OF 4500
WIPRO FUT 1st TARGET ACHIEVED @ 596 BUYING CALL GIVEN FROM 591 BOOKED PROFIT OF 4000
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BUY INFY 2 LOTS ABOVE 1852 TG 1867/1882 SL 1836
BUY TATACHEM 2 LOTS ABOVE 929 TG 934/939 SL 923
BUY TATA STEEL 2 LOTS ABOVE 1305 TG 1317/1327 SL 1294
BUY WIPRO 2 LOTS ABOVE 591 TG 596/601 SL 585
BUY VOLTAS 2 LOTS ABOVE 1181 TG 1191/1201 SL 1169