Share Market Learn With Earn India: 11. Chart Indicators and rbi monetary policy

Share Market Learn With Earn India

Date. 06 August 2020

Today’s Market

MARKET SCRIP	OPEN	HIGH	LOW	CLOSE	52 WEEK HIGH	52 LOW
NSE
NIFTY 50	11185	11256	11127	11200	12430	7511
NIFTY FUTURE	11140	11277	11120	11213	12419	7526
BANK NIFTY	21644	21926	21370	21642	32613	16116
BANK NIFTY FUTURE	21685	21969	21370	21671	32773	16020
CURRENCY USD-INR	75.01	75.15	74.92	75.10	77.01	68.663
COMMODITY-GOLD	55265	56079	55241	55098	49328	332701
COMMODITY-SILVER	75560	76360	75510	71893	53181	33619
COMMODITY-CRUDE	3155	3201	3122	3161	4671	804

BSE
SENSEX	37946	38221	37755	38025	42273	25638
BANKEX	24586	24930	24280	24603	37193	18430

Market Prediction (Speculation) Factor’s

MARKET SCRIP	RESULT
VIX	23.14
PCR	0.88
PE	30.68
DII	-468
FII	637
SGX NIFTY	11216
DOW JONES	27232

Market Analysis News’s/ Business Current Affair’s

Hindustan zinc up after citi raises target price

Apollo tyre Q1 results

SSWL receives new orders for over USD 209k from US

Cadila healthcare Q1 results update

PNC signs agreements for highway projects

IDBI bank to sell stake in IDBI federal insurance to ageas

Unichem lab gets USFDA not for tolterodine tartrate tablets

Lupins alliance partner gets USFDA nod to market cellcept tablet

Market end higher as RBI keeps rate unchanged

Blue star reports loss in Q1

BASF India Q1 net loss at Rs. 29.2 Cr

Gujarat pipavav Q1 net profit slips by 12.5% yoy

Adani power posts Q1 net loss at Rs.682.5 Cr

Astral poly technic limited revenue was lower by 33.4% yoy at 404Cr

Jyothy lab ltd posted better performance in Q1

Tata consumer products posted yet another quarter of strong performance in Q1

Inox leisure was the wash out quarter as cinema halls were being shut throughout the quarter

JK Lakshmi Q1 standalone results

Learning Point/ Educational Study Point

Market indicators are quantitative in nature and seek to interpret stock or financial index data in an attempt to forecast market moves. Market indicators are a subset of technical indicators and are typically comprised of formulas and ratios. They aid investors' investment / trading decisions.

List of indicators,

ADV(Accumulation Distribution Volume)

ADX(Avarage Directional Index)

BOL(Bolinger band)

Camarilla point

CCI(Commodity channel index)

Double moving average

Donchain channel

Elder ray bear power

Elder ray bull power

Gann hilo

High low moving average

Ichimaku

Keltner channel(traditional)

Keltner channel(ATR)

MACD

Moving average

Pivot point

PSAR(parabolic SAR)

PVT(Price volume trend)

ROC(Rate of change %)

RSI(Relative strength index)

Stoch RSI

Supertrend

Stochastick

Trix

Ultimate oscillator

VWAP(Volume weighted average price)

Vortex

Williams % R

Some indicators see details,

Moving average

The MA – or ‘simple moving average’ (SMA) – is an indicator used to identify the direction of a current price trend, without the interference of shorter-term price spikes. The MA indicator combines price points of a financial instrument over a specified time frame and divides it by the number of data points to present a single trend line.

The data used depends on the length of the MA. For example, a 200-day MA requires 200 days of data. By using the MA indicator, you can study levels of support and resistance and see previous price action (the history of the market). This means you can also determine possible future patterns.

Exponential moving average

EMA is another form of moving average. Unlike the SMA, it places a greater weight on recent data points, making data more responsive to new information. When used with other indicators, EMAs can help traders confirm significant market moves and gauge their legitimacy.

The most popular exponential moving averages are 12- and 26-day EMAs for short-term averages, whereas the 50- and 200-day EMAs are used as long-term trend indicators.

Stochastic oscillator

A stochastic oscillator is an indicator that compares a specific closing price of an asset to a range of its prices over time – showing momentum and trend strength. It uses a scale of 0 to 100. A reading below 20 generally represents an oversold market and a reading above 80 an overbought market. However, if a strong trend is present, a correction or rally will not necessarily ensue.

Moving average convergence divergence (MACD)

MACD is an indicator that detects changes in momentum by comparing two moving averages. It can help traders identify possible buy and sell opportunities around support and resistance levels.

‘Convergence’ means that two moving averages are coming together, while ‘divergence’ means that they’re moving away from each other. If moving averages are converging, it means momentum is decreasing, whereas if the moving averages are diverging, momentum is increasing.

Supertrend

A 'Supertrend' indicator is one, which can give you precise buy or sell signal in a trending market. As the name suggests, 'Supertrend' is a trend-following indicator just like moving averages and MACD (moving average convergence divergence). It is plotted on prices and their placement indicates the current trend

Bollinger bands

A Bollinger band is an indicator that provides a range within which the price of an asset typically trades. The width of the band increases and decreases to reflect recent volatility. The closer the bands are to each other – or the ‘narrower’ they are – the lower the perceived volatility of the financial instrument. The wider the bands, the higher the perceived volatility.

Bollinger bands are useful for recognising when an asset is trading outside of its usual levels, and are used mostly as a method to predict long-term price movements. When a price continually moves outside the upper parameters of the band, it could be overbought, and when it moves below the lower band, it could be oversold.

Relative strength index (RSI)

RSI is mostly used to help traders identify momentum, market conditions and warning signals for dangerous price movements. RSI is expressed as a figure between 0 and 100. An asset around the 70 level is often considered overbought, while an asset at or near 30 is often considered oversold.

An overbought signal suggests that short-term gains may be reaching a point of maturity and assets may be in for a price correction. In contrast, an oversold signal could mean that short-term declines are reaching maturity and assets may be in for a rally.

Fibonacci retracement

Fibonacci retracement is an indicator that can pinpoint the degree to which a market will move against its current trend. A retracement is when the market experiences a temporary dip – it is also known as a pullback.

Traders who think the market is about to make a move often use Fibonacci retracement to confirm this. This is because it helps to identify possible levels of support and resistance, which could indicate an upward or downward trend. Because traders can identify levels of support and resistance with this indicator, it can help them decide where to apply stops and limits, or when to open and close their positions.

Ichimoku cloud

The Ichimoku Cloud, like many other technical indicators, identifies support and resistance levels. However, it also estimates price momentum and provides traders with signals to help them with their decision-making. The translation of ‘Ichimoku’ is ‘one-look equilibrium chart’ – which is exactly why this indicator is used by traders who need a lot of information from one chart.

In a nutshell, it identifies market trends, showing current support and resistance levels, and also forecasting future levels.

VWAP(Volume weighted average price)

The volume weighted average price (VWAP) is a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price. It is important because it provides traders with insight into both the trend and value of a security. The volume weighted average price (VWAP) appears as a single line on intraday charts (1 minute, 15 minute, and so on), similar to how a moving average looks.

Retail and professional traders may use the VWAP as part of their trading rules for determining intraday trends.

Take Revision

In previous session we see shortsell, hedging, arbitrage. Commodity and types of commodity.

One Take Solution

Historical volatility- measure for stock, depend on past performance.

Implied volatility- measure for option/derivative, use for future.

VIX- Number measure for index

VIX(decrease)- volatility(decrease)-nifty(increase)

VIX(increase)- volatility(increase)-nifty(decrease)

Earning Point

EIH hotels, Taj GVK, Royal orchid, Kamat hotels, Avenue supermart, Mannapuram fin., MCX, Sunflag iron, Speciality resto., PFC, REC, Sail, Alkem lab, Colgate, Dabur, Titan, Tech Mahindra, PNB gilts, Tinplate, Selan exploration, HOEC, ONGC, Saint Gabain, Asahi india, Mahindra holidays, Kalyani steels, Westlife devlpt., EIH ltd, Bajaj holdings, Bomaby burmah, MRPL, Chennai petro.

Article

Hello friends,

The Reserve Bank of India (RBI) left the repo rate unchanged at the existing 4 per cent on Thursday, following a three-day meeting of its six-member Monetary Policy Committee (MPC). The Monetary Policy Committee decided unanimously to leave the repo rate at the existing level, and maintain its "accommodative" stance on policy, Governor Shaktikanta Das said in a virtual address to media. An accommoative stance rules out any increases in the near term. The RBI Governor said the Monetary Policy Committee expects inflation to remain at elevated levels in the July-September period, and ease in second half of the current financial year on account of "favourable base effect"

Relaxation On Loans Against Gold

To mitigate the impact of COVID-19 on households, the RBI decided to increase the permissible loan-to-value ratio (LTV) to 90 per cent on loans against pledge of gold ornaments and jewellery for non-agricultural purposes (under existing rules, such loans cannot exceed 75% of value). The RBI Governor said this relaxation will be available till March 31, 2021.

Restructuring Of MSME Debt

The existing loan restructuring scheme for MSMEs has provided relief to a large number of firms, the RBI Governor said. The government had earlier announced restructuring framework for MSMEs that were in default but categorised as "standard" as on January 1.

Stressed MSME borrowers will be made eligible for debt restructuring under existing framework, he said, provided their accounts were classified as "standard" on March 1. The restructuring will have to be implemented by March 31, 2021, he added.

RBI Announces Rs 10,000-Crore Measures To Address Liquidity Concerns Of Housing, NBFC Sectors

The RBI Governor announced an additional special facility of Rs 10,000 crore to address the needs of housing and non-banking financial sectors on account of COVID-19-caused disruptions.

That includes a Rs 5,000-crore faciliy for National Bank for Agriculture and Rural Development (NABARD).

Shaktikanta Das Announces Additional Measures To Address COVID-19-Triggered Disruptions

The rise of COVID-19 cases under fragile macroeconomic and financial conditions has forced the central bank to come out with additional measures, Governor Shaktikanta Das said.

The objective of these measures is to:

enhance liquidity support for financial markets, other stakeholders

further ease financial stress due to COVID-19 disruptions, strengthen credit discipline

improve credit flow

deepen digital payment systems

augment customer safety in cheque payments

facilitate innovations across financial sector, leverage on technology

RBI Leaves Repo Rate Unchanged At 4%

The Reserve Bank of India on Thursday left the repo rate unchanged at 4 per cent. The central bank also maintained the reverse repo rate - the interest rate at which the RBI borrows funds from commercial banks - unchanged at 3.35 per cent.

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