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Trading in stocks involves a lot of research and market analysis. However, even the most mature technical traders are likely to miss out on the most important stock information.
With Indiacharts, beginners, as well as experts, get a chance to come across the most reliable daily analysis reports on stock trading.
You will get in-depth details about the current market trends be it any financial instrument - stocks, derivatives, currency, cryptocurrencies, indices, or commodities, etc.
At Indiacharts, we believe it is important to understand the market well before investing in it. Thus, for traders who have collaborated with us, we offer all market updates on a daily, weekly, monthly, quarterly, and yearly basis.
When it comes to making investments, it is always important to be aware of the downside risks involved along with knowing the upside benefits.
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Through our daily technical analysis, we make an attempt to offer a micro as well as macro-level analysis of the market.
What is technical analysis?
If you think it's some kind of guesswork done depending on the current market scenario, you are mistaken.
Technical analysis is a process through which the experts study the market situation minutely and closely observe the price fluctuations that occur. The aces try their best to analyze each and every parameter to come to the most accurate conclusion.
Of course, technical analysis is no magic, but our genius financial market researchers and analysts come up with reports that are the closest to the actual expected movements in the market.
The analysis reports could be daily, weekly, monthly, or quarterly. It is up to the traders which one they use to ensure making a fruitful trade.
While some of them prefer going through the reports based on the gap between their last trade and the upcoming one, there are a few traders who keep a watch on the market on a regular basis to crack the best and most profitable deals whenever they get a chance.
Through daily analysis reports, Indiacharts helps market participants in daily decision-making and in framing strategies for efficient asset allocation.
Overview of technical analysis: Wikipedia
How is the daily technical analysis report prepared?
Our team of analysts focus on the price movements that frequently occur and study the patterns to figure out the direction of the movement. The technical traders understand how important it is to know the direction where the market is moving currently to make efficient investments for better returns. By studying the price charts, our experts detect the supply and demand levels in the market, thereby letting investors know when to buy or sell their stocks.
With the stock market analysis, the traders can easily frame their trading strategy and participate in the securities market as an ace. To prepare a reliable analysis report, our in-house team takes into account the historical market data, frequent patterns in the price changes, and technical indicators.
The day price charts help our experts understand the current market trends efficiently, thereby including the results in the analysis report prepared for investors.
In addition to the technical parameters, our assessors also examine the social and psychological inclinations of the market. Hence, they study the market sentiment to understand investor behavior as it tends to be one of the major factors affecting the market trend.
The support and resistance levels are also located, along with the tracing of the moving averages and the Relative Strength Index.
The indicators assessed by the experts to conclude the analysis have been elaborated below:
Historical price data
One of the most reliable indicators of the rise and fall of prices in the market is the past price data. The Indicharts people study the past data and study the historical market patterns to predict the performance for a particular trading day. This is one of the basic parameters to assess for the experts to conclude an overall real-time market scenario.
The frequent recording of the price movements helps technical analysts check on the current price action, thereby making traders decide on whether to invest the next trading day or wait for a better market condition.
One of the two parameters to be considered for proper daily technical analysis is the time frames in which the price changes would be recorded. The second one being the technical indicators that traders choose to use.
The time frames for technical analysis can range from a minute to monthly to yearly fluctuations in the price movement. The most popular ones, however, are:
- 5-min chart
- 15-min chart
- 1 hour or hourly chart
- 4-hour chart
- Daily chart
Those who get in and out of a trade in a single trading day opt for the first two or first three forms of price chart. The rest are considered for a trade of longer time and are the best for those who hold stocks overnight or so.
Candlesticks are the most efficient way of indicating the market's price movement on a chart. They are formed based on the price action that happens within a single time range for any time frame. Each candlestick that gets created on the chart is either hourly based to depict the price rise or fall occurring in one hour or it is 4-hour based, indicating the price action for every four hours.
The highest point of the candlestick shows the highest price the stocks are traded at a particular time period, while the lowest one displayed the lowest price for that time. The red or blue blocks of the candlestick that constitute its body indicated the opening and closing price for that time period.
The red one shows the opening price while the blue one indicates the closing price, which is the top part of the candlestick. If the blue candlestick is formed, it depicts the closing price for the period was more, while if the red portion is formed, the situation is vice-versa for that time period.
One of the first technical indicators to be used is the moving averages. The traders utilize one or more moving averages to analyze the current market trend and begin investing. The moving average strategy works on a specific rule that states - You can buy securities until the price remains more than the 50-period exponential moving average (EMA) and sell till the time the price is below the 50 EMA.
The crossover moving average, however, suggests buying when the 10-period moving average moves above the 50-period moving average. The higher a moving average value, the more significant the price changes are.
One of the major technical indicators used by our experts to assess the daily market to help market players invest in good deals is by forming pivot points. These points lead to the detection of the main levels to make traders identify the price points to enter and exit a trade. The pivot points detect the support and resistance level to let investors make better decisions on a particular trading day.
If the trading levels depicted through daily pivot points indicate a soaring or plummeting market, it implies a "breakout" situation wherein the market prices for the financial instruments are likely to be significantly higher or lower in the direction of the breakout.
For preparing these pivot points on a daily basis, experts compute the trading highs, lows, along with the opening and closing prices for stocks and other securities for the previous trading day. Once the prices for the previous day are studied and analyzed, the pivot points are estimated.
Named after a mathematician who discovered the Fibonacci series of numbers, this technical indicator has appeared to be one of the most reliable methods of predicting the price changes to happen in the markets.
It is believed and also observed multiple times that after a sustained uptrend or downtrend, the value of a financial instrument is likely to retrace to the opposite direction. This corrective retracement is seen just before the prices of the securities are all set to take up a trend change for long-term.
With the help of Fibonacci retracements, market strategists identify the level to which the securities' value will get retraced for a short period. With the help of the assessment, they let traders know of when to buy or sell the financial products to earn profits when they retrace to that level.
Let's say, the price of stock changed from $5 to $10 and then it fell back to a certain position. This is the time when money managers will get a good entry-level point to invest in shares as the prices hit low. However, the question is how to figure out the level to which the current price would retrace. The Fibonacci ratios, as discovered by the mathematician, help in doing so.
The Fibonacci ratios include 0.24, 0.38, 0.62, 0.76, and so on, which can also be expressed in percentages, like 24%, 38%, 62%, etc. To find out the retracement for the above level here is how the calculation is done:
The move from $5 to $ 10 signifies the movement of $5 ($10-$5).
If the retracement level is approximately 24%, the retracement would be 24% of $5 =$1.2. Thus, the new value will be $10-$1.2 = $8.8.
Therefore, traders can enter the trade for buying securities at $8.8.
A momentum indicator does not emphasize the market direction. Instead, it focuses on the market strength. If the market is strong, the position of traders is automatically strong. Thus, to find out whether it is the right time to invest in the market, experts use the most relevant momentum indicator for traders. As a market participant, you can refer to the analyses reports and figure out when exactly to go for making an investment.
There are many types of moment indicators that the strategists use to determine the strength of the markets. From finding the price rise or fall in NIFTY futures or any other financial instrument, these indicators help assess stock markets and their trend strength from all perspectives. Some of the most influencing momentum indicators include:
- Relative Strength Index (RSI)
- Moving Average Convergence-Divergence (MACD)
- Average Directional Movement Index (ADX)
How does Indiacharts help you?
Indiacharts makes your trading day fruitful. How? Well, the experts share with you the secrets of the market by studying the whole scenario over a period to provide you a clue on the expected prices changes for a particular day. The analysts also have a complete section where you can educate yourself and know every aspect of trading. The articles published in the section ensure you are aware of the market properly.
Trading strategist Rohit Srivastava introduces and elaborates concepts to make novice, as well as experienced traders, go through the basic and advanced concepts, which help them fully understand every single aspect of the market before making any investment decision. The technical trend analysis reports prepared by the ace for the "Educate Yourself" section include everything from capital market-related details to Initial Public Offering or IPO news to all stock market updates.
The next section is named "Weekend With IC" where you get an opportunity to get a gist of how the market had been the gone week and how is it believed to perform in the upcoming week.
How to access these daily reports?
Indiacharts offers a specified section for users to access these reports. The "Indiacharts Insiders" section of the website gives you a chance to access all recent market analysis reports prepared by Rohit Srivastava and his team of strategists.
However, access is allowed to subscribers only. Thus, to know how the technical indicators have affected the market and how is it going to impact the next trading day, you would require subscribing to the portal.
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As your guide to investment and trend analysis, we are always there to provide the proper analysis reports for the market before making your final decision. However, it is recommended that you as traders should go through the investment all the related documents carefully before you accept securities to trade-in.
The documents contain information about how to obtain your consolidated account statement from the brokers along with the mode of making transactions for the same whenever your earn profits from trading in different financial instruments.
If you follow our analytics and be careful from your end, no fraudulent deals would ever be able to trap you.