SEBI Rules

 No extension from SEBI

Important Notice:-

SEBI has changed some rules related to margin and trading.

1) Buying and selling of shares will Require Upfront margin from now onwards . 

Eg :  if you want to buy Reliance shares worth 1lakh you must have 20k rs in your account as cash and rest money to be paid within 2 days...

👆🏻 major Change if you want to sell 1lakh worth of Reliance shares from your holdings for that scenario also you must have min 20k rs in your account . Failing which penalties will be levied. 

👆🏻 read Carefully . Selling from holding will also require Upfront margin in cash (Var+ELM)

You can keep extra cash / or can pledge other holdings for the stipulated margin required. 

2) Shares bought today cannot be sold Tomorrow..

👆🏻👆🏻👆🏻👆🏻 BTST Closed

Eg You bought Reliance On monday..You can only sell those shares after recieving the delivery of shares.  T+2 you can sell in Wednesday 

You can only sell the shares after you receive in Your DP/only after receiving the delivery of shares. 

3) Shares Sold Today from delivery..... the funds cannot be used for new trades today.. You can use the funds for new trades the next day 

Eg:🌟 You sold 10,000rs worth of Reliance's shares today.  

👆🏻you cannot use this money to buy fresh shares of other companies. This 10k will be cleared the next day you can use the money next day.. 

No changes In options and Futures Rules for Now Till further Notice

12 Things of Monday Market

 Ahead of Market: 12 things that will decide stock action on Monday

Synopsis

Here’s a look at what some of the key indicators are suggesting for Monday's action.

NEW DELHI: As Nifty ended above the 11,350 level on Friday, it formed a bearish candle on the daily chart.

Chandan Taparia of Motilal Oswal Financial Services said the major trend of the index remains positive, but it needs to surpass the recent swing highs to commence the next leg of rally.

Vinod Nair of Geojit Financial Services said the expectation of economic activity picking up and earnings normalising would have to translate into reality or at least show signs of it for for the market to sustain the current momentum.

Shibani Sircar Kurian of Kotak Mutual Fund said at the margin, a few indicators such as traffic congestion, workplace mobility, car sales and property searches have inched up, showing signs of some improvement in the economy.

“From here on the pace of the improvement of economic indicators along with outcomes of a possible vaccine or a cure for Covid-19 would determine the market movement,” she said.

That said, here’s a look at what some of the key indicators are suggesting for Monday's action:

US stocks bounced on Friday

US stocks rose on Friday, lifted by strong economic data. Dow finished the session 190 points higher at 27,930, while S&P 500 advanced 0.34 per cent to 3,397, a new record closing high. The Nasdaq climbed 0.4% and ended at 11,311, also a record close.

Weak data dragged European shares

European stocks fell Friday, as sluggish economic data proved difficult to shrug off for investors. The Stoxx Europe 600 index erased an earlier gain to fall 0.4 per cent to 364, following a 1% drop in the prior session. The German DAX fell 0.9% and the French CAC dropped 0.7%, while the FTSE 100 slipped 0.5%

Tech View: Bearish candle on Nifty chart

Nifty50 on Friday reclaimed the 11,350 mark, but formed a bearish candle on the daily chart, as the index gave up some of the opening gains. The NSE barometer, which stayed above its five-day moving average for the session, now faces resistance in the 11,440-540 zone, analysts said. Support for the index is seen at 11,360 level, they said.

F&O: Nifty trading zone at 11,500-11,600

India VIX fell 4.46 per cent to 19.70 level. Volatility is cooling down gradually on a week-on-week basis, which suggests a bullish stance and buy-on-decline strategy can continue in this market. Options data suggested a trading range between 11,200 level and the 11,500-11,600 zone in the coming few days.

Stocks showing bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) on Friday showed bullish trade setup on the counters of GMR Infrastructure, Power Grid, IDBI Bank, UCO Bank, Firstsource Solution, DCB Bank, TV18 Broadcast, Max Financial Services, Sterling and Wilson, BF Utilities, Cochin Shipyard, The Ramco Cements, Dalmia Bharat Sugar, Huhtamaki PPL, Gujarat Gas, Power Mech Projects, BASF India, Solara Active Pharma, Neuland Labs and Kirloskar Oil Engine, amo ..

Stocks signalling weakness ahead

The MACD showed bearish signs on the counters of Tata Motors, Jaiprakash Power, Amara Raja Batteries, Balkrishna Industries, Cosmo Films, Amrutanjan Healthcare, Mastek, Majesco, Varun Beverages, Westlife Development, Motilal Oswal Financial Services, GTPL Hathway, Indoco Remedies, GlaxoSmithKline Pharma, Sasken Technologies and TTK Healthcare, among others.

Friday’s most active stocks

RIL (Rs 2444.86 crore) , ZEEL (Rs 1601.68 crore) , HDFC Bank (Rs 1563.60 crore) , SBI (Rs 1357.51 crore) , Divi's Laboratories (Rs 1260.97 crore) , ICICI Bank (Rs 1260.58 crore) , Bharti Airtel (Rs 1139.33 crore) , NTPC (Rs 1134.58 crore) , Axis Bank (Rs 1103.74 crore) and Asian Paints (Rs 1100.12 crore) were among the most active stocks on Dalal Street on Friday in value terms.

Friday’s most active stocks in volume terms

BHEL (shares traded: 17.98 crore) , YES Bank (shares traded: 14.60 crore) , NTPC (shares traded: 10.78 crore) , GMR Infra (shares traded: 10.18 crore) , Vodafone Idea (shares traded: 10.09 crore) , ZEEL (shares traded: 8.23 crore) , Future Consumer (shares traded: 7.95 crore) , PNB (shares traded: 6.87 crore) , SBI (shares traded: 6.80 crore) and Tata Power (shares traded: 6.42 crore) were among the most traded stocks in the session.

Stocks seeing buying interest

BASF India, Alkyl Amines, Affle (India), Aarti Drugs and Indiabulls Ventures (PP) witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Friday signalling bullish sentiment.

Stocks seeing selling pressure

Max Healthcare Institute and Madhav Copper witnessed strong selling pressure in Friday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.

Sentiment meter favours bulls

Overall, market breadth remained in favour of bulls. As many as 315 stocks on the BSE 500 index settled the day in green, while 182 settled the day in red.

Podcast: A Nifty correction might not be coming >>>

Strong FII inflows and hopes of another US stimulus have been driving the bulls, but they seem to be losing their vigour. More analysts are projecting a correction. How much merit do you see there? And if there is one coming, what can investors/traders do to protect their profits?

Top-10 Value firms

 Market cap of 7 of top-10 valued firms jumps Rs 67,622 cr; ICICI, HDFC Bank lead gainers

Synopsis

Tata Consultancy Services (TCS), HDFC Bank, Hindustan Unilever Limited (HUL), HDFC, Kotak Mahindra Bank, ICICI Bank and ITC were the gainers while Reliance Industries Limited (RIL), Infosys and Bharti Airtel witnessed a decline in their market valuation.

New Delhi: Seven of the top 10 valued domestic firms added a total Rs 67,622.08 crore to their market valuation last week, with HDFC Bank NSE 1.78 % and ICICI Bank NSE 1.43 % emerging as lead gainers.

Tata Consultancy Services (TCS), HDFC Bank, Hindustan Unilever Limited (HUL), HDFC, Kotak Mahindra Bank, ICICI Bank and ITC were the gainers while Reliance Industries Limited (RIL), Infosys and Bharti Airtel witnessed a decline in their market valuation.

The market capitalisation  ..

In contrast, the market cap of Reliance Industries declined by Rs 20,507.97 crore to Rs 13,19,705.53 crore.

Bharti Airtel's valuation dipped Rs 4,855.45 crore to Rs 2,83,688.98 crore and that of Infosys went lower by Rs 1,972.11 crore to Rs 4,04,151.80 crore.

The 30-share BSE Sensex advanced 557.38 points or 1.47 per cent lastIn contrast, the market cap of Reliance Industries declined by Rs 20,507.97 crore to Rs 13,19,705.53 crore.

Bharti Airtel's valuation dipped Rs 4,855.45 crore to Rs 2,83,688.98 crore and that of Infosys went lower by Rs 1,972.11 crore to Rs 4,04,151.80 crore.

The 30-share BSE Sensex advanced 557.38 points or 1.47 per cent last week.

Trade Setup

 Trade Setup: Dollar rebound to vex Nifty, action shifts to broader market

Synopsis

On Friday, Nifty will face resistance at 11,350 and 11,385 levels while supports will come in at 11,250 and 11,185 levels.

It was a day of correction for domestic equities on Thursday, as the market opened lower and ended on a negative note. Following overnight weakness in the US market and some technical rebound in US Dollar Index, Asian markets saw a negative start across the board, and India was no exception.

Headline index Nifty opened with a gap down and stayed in the negative territory throughout the day. While no recovery was seen during the day, Nifty did not breach its opening low, though it did te ..

The Relative Strength Index, or RSI, on the daily chart stood at 60.01. It has marked a fresh 14-period low, which is a bearish signal. The RSI remains neutral and does not show any divergence against price. The daily MACD remains bearish and trades below the signal line.

A Falling Window occurred on the candles. This resulted out of a gap-down start. Falling Windows often result in continuation of a bearish trend. However, this would need confirmation in the next trading session.

 ..

Gold,Silver Prices

 

Gold, Silver prices in India on August 20: Gold price in India fell after for the second consecutive day on Thursday amid weakness in global markets, as a stronger US dollar made metals less attractive to holders of other currencies. Gold prices had fallen 4.5% in the previous week, registering its biggest decline since March amid appreciation in the US dollar.

The dollar index, which reflects the greenback's value against six leading Asian trading currencies, steadied at 93.042. The dollar rose 0.50% this morning after trading near two-year lows, as the Fed minutes downplayed the chances of change in interest rate policy until end-2021.

Share Market News Live: Sensex drops 350 points, Nifty at 11,320; ONGC, HDFC, L&T, ICICI Bank top laggards

Precious metals have been under mild pressure on risk appetite due to the US Federal Policy meeting minutes and sentiments stayed mixed after US Federal Reserve's cautious view of the economy. Comments highlighting uncertainties over the US recovery by Fed policymakers and lingering concerns over a US coronavirus stimulus bill have kept investors pessimistic.

Yesterday, both gold and silver spot slipped near by half a percent after sharp moves in previous session. On MCX gold too ticked lower, while silver lost more than 1%.

Gold price falls ahead of US Fed's policy meet outcome; silver rates at Rs 68,500

MCX

On the Multi-Commodity Exchange, gold September Futures traded 0.75% or Rs 395 lower at Rs 52,255, after hitting an intraday low of Rs 52,080 against the previous close of Rs 52,622 per 10 gm. MCX gold futures currently trade almost Rs 3,996 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7.

On MCX, the yellow metal has risen 41.5% to the life-time high since the beginning of the year amid concerns over rising coronavirus cases around the globe. Bullion that was trading at Rs 39,000 on December 31, 2019, recently hit a lifetime high of Rs 56,191 per 10 gm on August 7, 2020.

Similarly, Silver September futures were trading Rs 470 lower at Rs 67,490 per kg today after they touched an intraday low of Rs 67,135 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.

Global markets

Market has been focusing the outcome of minutes from US Federal Reserve's policy meeting held on July 28 and 29. Recovering from a 3.6% tumble on Wednesday, Spot gold rose 0.51% to $1,939.28 per ounce Thursday as Fed members said additional easing may be needed because a rebound in employment was already slowing.

US gold futures fell 1.4% to $1,943 per ounce, while Comex gold was down .90% lower at $1,941 per ounce. Silver gained 0.8% to $26.94 per ounce.

Prices of the bullion metal fell upto 4.5% last week after the dollar had gained some ground and as US-China tensions continued to weigh on investor sentiment.

Amid the coronavirus-driven slowdown, fuelling fears of inflation and currency debasement, Comex gold has risen almost 36% to touch an all-time high of $2,063 per ounce hit on August 5, 2020, from lows of $1,517 per ounce, registered on 31 December 2019.

Gold vs Reliance Industries stock: Which has given better returns in 2020 so far?

Retail gold rate in India

24-carat gold prices in the national capital traded at Rs 56,570 per 10 gram. Price of 24-carat gold stood at Rs 56,250 per 10 gram in Chennai. In Mumbai,the rate for 24-Carat gold stood at Rs 52,990 as per Good Returns website.

Valuation

As per Geojit Financial Services, support of $1920 may hold the downside and expect an initial pullback. However, it need to stabilise above $1980 to continue bullish momentum. A direct drop below $1920 prices may target towards $1880 or even more.

For MCX Gold August, resistance is placed at 54,000 and support is at 51,400. For MCX Silver August futures, the resistance is at 71,500/74,980 and the support is placed at 65,100/60,800.

Commenting on Gold's outlook, Hareesh V, Head Commodity Research at Geojit Financial Services said," A weak US currency and expectations of more economic easing measures amid slow global growth continue to lift the safe-haven demand of gold. However, an intermittent profit booking cannot be ruled out on signs of easing US-China trade tensions and optimism about coronavirus vaccine."

On London spot technical outlook, he added," A direct break of $2020 is required to continue the bullish outlook, else intraday bias largely on the downside. However, major downside moves are likely only if prices break $1970."

Investors' interest in gold has risen ever since central banks globally embarked on unprecedented financial stimulus to combat the Covid-19 pandemic related economic headwinds. This has caused investors to use the bullion metal as a hedge against inflation and currency debasement.

Worldwide, there are 225 lakh confirmed cases and 7.91 lakh deaths from COVID-19 outbreak. Meanwhile, death toll in India crossed 54,000 mark and total coronavirus cases stood at 28.37 lakh as of Thursday.

Gold prices may hit Rs 65,000 level by Diwali; silver likely to touch Rs 90,000-mark

Today's Market Analyse

Smallcap surge: This stock jumps over 200% since March; Q1FY21 net profit doubles:

👉 The stock has witnessed one of the steepest V-shaped patterns in the market. 

👉 It has jumped 215 percent from its March low levels this year.

 

Midcaps and smallcaps are outperforming the largecaps after a period of two years. The surge of gains in the broader markets this year is unpredictable but also justified. One such listed company has been increasing its momentum since March along side largecaps. In fact, it has been hitting 52-week highs consecutively.

Uflex Ltd is a leading packaging company. The stock has witnessed one of the steepest V-shaped patterns in the market. It has jumped 215 percent from its March low levels this year.

At 2:50 pm, the stock traded over 8 percent higher to Rs 364.50 per share on the NSE.

In February, when the COVID-19 fear started to spread across the world, however, the company's management did not blink their eyes. They said that they remain unaffected of the novel disease as they are hardly dependent on China for raw materials.

The management's strong commentary was proved in its June quarter earnings where they reported a two-fold rise in consolidated net profit to Rs 196 crore as against Rs 91 crore for the same period last year.

Total production volume also increased by 13 percent year-on-year (YoY) to 1,07,599 metric tonnes (MT) while total sales volume rose 9 percent YoY to 1,03,575 MT.

In its earnings note, the management remained confident as usual. It said, "While Uflex believes that its business will continue to remain unscathed by the pandemic as it continues to witness higher demand for its products globally so far in FY 2021, there could be uncertainties in the future due to underlying developments with respect to COVID-19, which are difficult to predict."

Considering the online retail purchase interest increasing daily, it is seen that the stock could continue its uptrend in the future. Rajesh Bhatia, group president and chief executive officer of Uflex said the company amidst the lockdown was able to complete the construction of new facilities in Poland and Russia and start trial runs.

Expect our margins to remain healthy in the medium term, added Bhatia. With such confident outlook on the business, who wouldn't want to buy this stock? 

Day Trading Strategies

Day Trading Strategies

1. Knowledge Is Power

In addition to knowledge of basic trading procedures, day traders need to keep up on the latest stock market news and events that affect stocks—the Fed's interest rate plans, the economic outlook, etc.

So do your homework. Make a wish list of stocks you'd like to trade and keep yourself informed about the selected companies and general markets. Scan business news and visit reliable financial websites.

2. Set Aside Funds

Assess how much capital you're willing to risk on each trade. Many successful day traders risk less than 1% to 2% of their account per trade. If you have a $40,000 trading account and are willing to risk 0.5% of your capital on each trade, your maximum loss per trade is $200 (0.5% * $40,000).

Set aside a surplus amount of funds you can trade with and you're prepared to lose. Remember, it may or may not happen.

3. Set Aside Time, Too

Day trading requires your time. That's why it's called day trading. You'll need to give up most of your day, in fact. Don’t consider it if you have limited time to spare.

The process requires a trader to track the markets and spot opportunities, which can arise at any time during trading hours. Moving quickly is key.

4. Start Small

As a beginner, focus on a maximum of one to two stocks during a session. Tracking and finding opportunities is easier with just a few stocks. Recently, it has become increasingly common to be able to trade fractional shares, so you can specify specific, smaller dollar amounts you wish to invest.

That means if Apple shares are trading at $250 and you only want to buy $50 worth, many brokers will now let you purchase one-fifth of a share.

5. Avoid Penny Stocks

You're probably looking for deals and low prices but stay away from penny stocks. These stocks are often illiquid, and chances of hitting a jackpot are often bleak.

Many stocks trading under $5 a share become de-listed from major stock exchanges and are only tradable over-the-counter (OTC). Unless you see a real opportunity and have done your research, stay clear of these.

6. Time Those Trades

Many orders placed by investors and traders begin to execute as soon as the markets open in the morning, which contributes to price volatility. A seasoned player may be able to recognize patterns and pick appropriately to make profits. But for newbies, it may be better just to read the market without making any moves for the first 15 to 20 minutes.

The middle hours are usually less volatile, and then movement begins to pick up again toward the closing bell. Though the rush hours offer opportunities, it’s safer for beginners to avoid them at first.

7. Cut Losses With Limit Orders

Decide what type of orders you'll use to enter and exit trades. Will you use market orders or limit orders? When you place a market order, it's executed at the best price available at the time—thus, no price guarantee.

A limit order, meanwhile, guarantees the price but not the execution. Limit orders help you trade with more precision, wherein you set your price (not unrealistic but executable) for buying as well as selling. More sophisticated and experienced day traders may employ the use of options strategies to hedge their positions as well.

8. Be Realistic About Profits

A strategy doesn't need to win all the time to be profitable. Many traders only win 50% to 60% of their trades. However, they make more on their winners than they lose on their losers. Make sure the risk on each trade is limited to a specific percentage of the account, and that entry and exit methods are clearly defined and written down.

9. Stay Cool

There are times when the stock markets test your nerves. As a day trader, you need to learn to keep greed, hope, and fear at bay. Decisions should be governed by logic and not emotion.

10. Stick to the Plan

Successful traders have to move fast, but they don't have to think fast. Why? Because they've developed a trading strategy in advance, along with the discipline to stick to that strategy. It is important to follow your formula closely rather than try to chase profits. Don't let your emotions get the best of you and abandon your strategy. There's a mantra among day traders: "Plan your trade and trade your plan."

Before we go into some of the ins and outs of day trading, let's look at some of the reasons why day trading can be so difficult.

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