Tag: Epic Research Investment Adviser

21Feb

Brief introduction to momentum traders and their types

In stock market there are different types of traders, momentum traders are those who are looking for movements in stock’s prices. Once they identify movements in price they take long or short position in that stock and hope that this momentum will continue in upward or downward direction. This strategy is more dependent on short term price movements and therefore trader here trades with stocks which are moving significantly in one particular direction on high volume. Time period for which a trader will hold his position depends on how fast a stock is moving. To earn good profit from market often traders prefer to use mcx tips of proficient market experts. These traders are very different from other as they only focus on stocks which are in the news. Whereas other traders gives emphasis to different fundamental factors, technical charts and graphs and company’s performance.

Types of momentum traders are discussed below :

1) Technical based momentum trader

These traders take decision on the basis of their perception that market is either being higher or lower than it is expected to be. To conclude this they study different technical factors. If they find that market is high then it is expected then they take take short position in stock and buy it later. On the contrary of they find that market is low than it is expected they buy stocks and sell them later.

2) Event based momentum trader

These traders take decision on the basis of different factors. They usually look for volatility in market which is caused because of some specific news or event in a particular trading day. When any news hits the market different traders perceives it differently and because of it high volatility is witnessed in the market. Once the news reaches mass traders market becomes more volatile and stocks affected by it tends to swing in one particular direction and this movement last for some time. Momentum traders make use of this time and plan rapid trades during it to earn maximum profit. These traders needs to be very attentive in market , a delay of seconds also can make them miss a good opportunity.

We can conclude by saying this momentum trading is all about identifying stocks which are showing strong movement in any one particular direction and are likely to last there for some time. Traders need to have exceptionally good knowledge about market for using such strategy and also they should be able to perceive different market news and updates correctly. Then only they can take the right decision and earn good profit for themselves. They can also follow share trading tips as suggested by experts of market to ensure that they are on the right path. Discipline and patience are two qualities which a momentum trader must have as without them it is really difficult to succeed in market.

30Jan

Expectations of the common man from the Union Budget 2018-19

Union Budget 2018- 19 is going to announced by our finance minister Mr.Arun Jaitely on 01 February 2018. People have a lot of expectation from the new budget and they are very excited to know how it will affect common man’s life. This will be the last full budget of Lok Sabha led by our respected prime minister Mr. Narendra Modi so people are more curious about the new budget.

Few highlights- Expectation from budget 2018

1. Real estate sector– According to experts, real estate sector may include under GST after April 1st. This idea will introduce in the budget session. The main purpose of doing this to bring transparency in the transaction of property and to stop corruption. According to expert – property is not a service but people use it for construction for the residential purpose that is why it can be treated as service. It will clean the property market and also encourage the foreign investor to come and invest more in the real instate sector.

2. Insurance sector – The Healthcare Federation of India ‘NATHEALTH’ is asked to government to make health insurance necessary for all the citizen. According to industries, there is a need to give stress on the importance of medical insurance also there should be a development of powerful healthcare sector. Since many steps taken by the government in the favour of health industries then people have hope that this new budget will continue to run on the same path. With the good support from the government, the healthcare insurance industry is ready to face the challenges to invest resources in the development of infrastructure as well as it will develop expertise in this sector.

3. Auto Sector – The head of luxury car wants a reasonable tax rate on big SUV’s and cars which help them by expanding in the market easily. The automobile industries want to regain their incentives given on research and development because government reduced weighted tax deduction on research and development to 150 from 200 percent in the previous level. In pre-budget wishlist of this sector, the SIAM has enlightened few imported electric vehicle parts in preferential tariff list which will help to promote the eco-friendly technology.

 

4. Personal Finance sector – The Industry body CII has proposed that dividend distribution tax rate should be 10 percent in the upcoming Budget in order to motivate participation of different stakeholders in our country’s financial markets. In this budget session, Narendra Modi government is planning to impose a long-term capital gain tax on equity investment. In the past, Modi government felt that tax on equity investment is not too much as compared to tax implemented on the other investment. So now they are planning to bring a new tax for stock market investment. This decision will bring more investment in taxable section.

5. Expectations on consumer goods – The Federation of All India Farmer Association asked the government to propose a certain taxation policy to ban cigarette smuggling because Increasing in the tobacco taxation in the past time gave the birth to smuggling of tobacco. Consumer goods makers have requested to the government to make customs duty double on imported products like air conditioners, refrigerators and washing machines, the main aim to do this is to encourage domestic manufacturing. They also want to cut down the rate of GST on ACE good to encourage consumption.

So these are the few important highlights of budget 2018-19 that will be introduced on 01 February 2018. Then we will see what are the actual changes made by our government in the favour of common man.

More details on Budget :- http://www.epicresearch.co/budget-express

27Sep

Nifty Outlook For Tomorrow By Epic Research

A bearish engulfing pattern with largest one day loss butchers the bulls as Nifty slides below all crucial moving averages it was holding from last December. A close below 9800 confirms that damage can be much sever in coming days as no breathing space is left for short term bulls.
A bearish engulfing pattern is seen which has engulfed the previous sessions some minor rebound while a close below 9800 is signalling more bearishness in market. On Immediate basis the support for market is seen at 9700 which in case holds may provide a short term relief coupled with  rollover data which is way weaker as compared to last few months with a day more to go. We see short term support for market coming at 9540 – 9600 which may give some meaningful pause. On higher side point of inflection is seen at 9800 – 9840.
As Far as OI data is  concerned we may see much weaker expiry this month which may set the bearish tone for October series.
We are cautious with sell on rise approach and any rise shall be used for the same. Some defensive play is observed in FMCG and Infosys but that may as well evaporate given the strength of bears on overall market.
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