How to predict stock market trends – Trading The GAP analysis

I am going to share my personal experience and researcher’s trick of viewing the stock market trends is the TRADING THE GAP analysis.

I have already tested this strategy in various markets including the Nifty futures stocks, Nifty equity stocks, Stock cash, Stock cash services,

We are hunting for a Trend Day, which is a very recurring pattern in the Stock Market. This is what a trend day looks like.

GAP analysis for trading in Stock Market
GAP analysis for trading in Stock Market
  1. 15 a.m.–9.25 a.m. – Find Stocks that have opened with a GAP up or Down of more than 2%. Out of 200 FNO stocks, you have cut down your selection criteria to 3–4 stock. There is some news in this stock, or some large investor wants to buy large quantities in this stock and hence the GAP.
  2. 25 a.m–9.30a.m. – There will be 3 data point available 1) Volume. 2) High 3) Low. Volume has to be higher than previous day’s volume in 10–15 mins. Now keep a buying Stop Loss above the day’s high.Example yesterday stock A closed at 100, today it opened at 103 and in the first 10 mins made a low at 102.55 and High of 103.5. As soon as it crosses its 15 minute high of 103.5 buy it.
  3. 30am–3.30pm– Once the Buy order is triggered, keep days low, or weighted average price as your Stop Loss. Keep the stock until it is 3.15 or your trailing stop loss is triggered.

It is very easy strategy with mind blowing results. This works on the Reverse Side as well when the stock opens down 2%, thought the results are better if you do it long only.

You have a automated Stop loss which is your weighted average price, as price of the stock increases during the day, so does your weighted average price (Stop loss). Use this system for a month, you will never faced a drop down of more than 10% in your trading career.

You might be thinking if I was such a good trader, why I don’t move to start my own Stock Advisory. So let me tell you we have Stock Advisory company with best Research team named, Profitaim Research Advisory.

We provide trading tips in all segments of Stock Market, includes Equity Market and stock Market. Our services – Stock Cash, Stock Cash Premium, Stock Cash Super HNI, Stock Future, Stock Future Premium, Stock Future Super HNI, Stock Option, Stock Option Premium, Stock Option Super HNI, F&O COMBO Pack, Nifty Future, Base Metal, Base metal Super HNI, Base metal + Energy, Bullion Super HNI, Energy, Energy super HNI, MCX, MCX super HNI pack and so on.

This Strategy works only if you have less than 20–30 Lakhs rupees, because after that you start affected the volume of the stock; the stoploss doesn’t get triggered properly.

Incase you have any doubts on the Strategy, feel free to comment below.
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Special Deposit window- Finance Ministry planning

India’s Finance Ministry planning to start a special deposit window

India’s Finance Ministry may start a special deposit window to end an unusual liquidity overhang at this time of the financial year, helping the central bank deploy a more cost-effective device to manage excess cash that entered the banking system in the aftermath of the currency note swap.

Ministry officials are slated to meet top bankers Friday to discuss the one-off mechanism, the chief executive of a private bank told ET. Banks now are carrying a surplus of about Rs 4.68 lakh crore on an average this month, official data, compiled by Edelweiss Fin showed. The last month in a financial year is typically cash-deficit.
“Banks are facing a problem of large surplus liquidity currently,” said Piyush Wadhwa, head of treasury at IDFC Bank. “Some of this liquidity shall go away because of demonetisation and seasonal factors. However, the markets will keenly await the central bank’s move on removing this liquidity, and the impact of such a move.”
The surging cash in the system, triggered by the government’s November 8 demonetization and subsequent deposits, makes Reserve Bank of India’s (RBI) liquidity management costly as it pays 6.25% to mop up surplus liquidity from the system through the repo window. Surplus funds have also sent overnight borrowing rates plunging 50-55 basis points below the policy rate – a range clearly beyond the RBI’s zone of comfort.
Traditionally, the RBI prefers the call rate with the band of +/-25 bps over the policy/repo rate, now at 6.25%.
Bond traders are now battling the problem of plenty. They anticipate probable central bank actions to suck out excess liquidity, disrupting market rates. They believe that the finance ministry may be in favour of a special deposit window, aimed at sucking out the excess cash that banks are parking with the RBI to earn 5.75%.
“Cash will not go out of the banking system easily,” said Soumyajit Niyogi, Associate Director Credit & Market Research, India Ratings & Research. “Inter-bank call rates are clearly not in RBI’s target zone now, which needs to be realigned with RBI’s stated objective. Markets look a bit apprehensive of RBI measures to curb the ample liquidity, as some measures could exert pressure on bond yields, distorting the market.”
If the RBI, for instance, conducts open market operations by selling sovereign debt to sucking out liquidity, bond yields would rise. This in turn would make the government’s borrowing programme expensive.
In addition, dollar inflows too will keep cash sloshing as the RBI may have to intervene to curb any sharp rise in the rupee by buying dollars.
“An element of uncertainty is slowly gaining momentum in the money markets, with overnight rates deviating from their normal trajectory,” said Ajay Manglunia, executive VP (fixed income) at Edelweiss Finance. “The scenario may change over a period of time, but the markets would like to know whether this cash surplus is permanent and would have a prolonged bearing on the rates.”

In its last bi-monthly monetary policy, the central bank said: “The RBI is committed to ensuring efficient and appropriate liquidity management with all the instruments at its command to ensure close alignment of the WACR (weighted average call rate) with the policy rate.”

Saudi king’s Asia tour trumpets Aramco’s moves downstream

By Henning Gloystein
SINGAPORE (Reuters) – Saudi King Salman’s lavish tour of Asia, arriving in each country on a golden escalator with 400 tonnes of luggage, had a hardnosed marketing mission – to cement the kingdom’s place as leading oil supplier to the world’s biggest consumer region.
The string of deals inked on his three-week tour to Malaysia, Indonesia, Japan and China also point to a fresh strategy, one to increase Saudi leverage over refined product and petrochemical markets, known as the downstream sector.
“Our strategy is about growth in the downstream,” said Amin Nasser, chief executive officer of state oil company Aramco, told Reuters on Sunday. “The growth in that sector is very important, and anything integrated between refining, petrochemical, with marketing and distribution, is of interest to us.”

Saudi King Salman bin Abdulaziz Al-Saud waves as he attends Saudi-Japan Vision 2030 Business Forum in Tokyo, Japan, March 14, 2017. REUTERS/Toru Hanai

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