Yes Bank's Fortune

Yes Bank FPO got tremendous and wonderful response.It subscribed more than 95%. Remember it was a very big FPO of almost 15000 crores.Although retail investors did not participate enthusiastically ,the FPO got  almost fully subscribed.Most of the shares are in the hands of QIB and HNI.It may turn the fortune of yes bank. It seems that it's price will not come below 15 and after three months it may go above 30.Good Luck for retail investors.

Rules to be followed while trading

Keep eyes on price increase of shares and corresponding  trading volumes . If Price increase is significant with very high volumes before just closing the market , traders should certainly make positions in future of that stock and should square off positions on next day when market opens.This rule should be followed by every individual trader who trades in small quantity such as in one ,two or three lots.
Here it's very important to know that small individual traders has very less power to hold the stock for long duration.When small trader hold the stock for long duration and do not book the profit immediately their profit may be converted into loss within no time.
Entire practice is illustrated in the following trade
 On July 04,2019 I bought  2 lots ie 1800 shares of UPL at Rs 697.80 just before closing of the market and sold it at Rs 705.05 on July 05,2019  just on opening of the market and got handsome profit.
How it happens this should be analysed at micro level.
On July 04 during market hour I observed price movement of UPL carefully along with trading volumes in cash market. It is observed that around closing of the maket UPL increased almost 7% with huge increased in trading volume in cash segment. Clearly huge trading volume was supporting the increase in price and it was the perfect situation to take buy position in derivative segment of this stock for higher opening price next day.Exactly the same was happened what I speculated.
In any trade , risk is always involved particularly when you take overnight position.But you have to take risk if you want to make money from stock market.
In the above case it might be possible that opening price is to be down to the purchased price. In that case you should hold it, there is good chance that share price will come up in green  in due course of time ,so  here you should wait for it.If opening price is marginally down you may again wait or you may sell it immediately and try to catch it at some lower price and again hold it for sometimes,good chance that price will come up in green.The latter is done  only by smart trader.
The above analysis needs normal conditions of the market .Also stock should be liquid enough.

Market looking weak

Having gone through the market data today it is clear that  the market has become weak now.Ttrades along longside will  be risky trade. Only some trades looking in longside like united spirit,jsw steel and sail if it is not in ban .If anyone has taken overnight  long positions in these stocks some profit may be possible at opening of the market.

Strong Market

 At the end of the market today I observed the data which suggest that FII's are consistently buying in the market. Among many signals FIIs buying is most important signal for a strong market.

It is suggested that one should take long positions for trading. In some counters one may carry long positions overnight and may book profit at market opening.Such counters are Asian Paints, M&M Finance, L&T Finance, Shriram Transport and Bandhan Bank.

If  any of these counters open in red , it will  be buying opportunity and opportunity to make profit on the same day.

Remember all the suggested events has very high probability and not the  certainty of happening. So manage stop loss accordingly.

Thanks to all.

Market On Monday

• Having observed the market data of the previous session , one thing is clearly visible that after five or six sessions FII's  has turned as buyer in the cash market. Anyone can take it as a good signal for trading in the long side though one should keep in mind the changing situations on LAC while trading.Corona factor has already been ignored. Many traders avoided to carry overnight positions due to uncertainties over LAC and Corona issues. After the previous session there is no negative development in global conditions. Till now it looks normal. In these conditions it is quite possible that market will open in green on Monday. But due to any other reasons if market opens in red specially the strong counters such as ADANI PORT, BEL ,BHARAT FORGE, BHARTI AIRTEL and BHEL also , it wil be buying opportunity. Apply your knowledge when you are going to take long positions. Avoid long positions in the above counters if it opens already in green. Observe these counters carefully for sometimes at opening of the market and if  these stocks provide discount , which may be anything else  around 1-2 % or even more or less depending on your prior knowledge of trade, make long positions and wait . Book your profit smartly when prices come into green. It is most probable that prices will come in green. Also one should ready to book losses , if events suggested above is not looking to happen. Normal conditions are needed for happening of all these events.

Tomorrow's Market

Having gone through data today, market looks strong for tomorrow's trade at opening.In today's market one should notice that rupee has gained significantly against dollar.It is one of the many indicators of a strong market Once it is decided that market is strong one should be clear that long positions should be made in the trades,not short positions in general. Next when and in which counters one should make long positions. The data suggest that the counters like M&M,Tata Power,TCS,Bandhan Bank where one should take long positions.For tomorrow's trades at opening if anyone has taken long positions in M&M and in Tata Power just before closing of the market and carrying overnight positions it is high probability that these counters will open up and one should book profit without making any late.If the counter of M&M opens down it will be opportunity to make long position and book profit after waiting sometimes. These all will be happened if market will operate in normal conditions.