Top swing trading ideas you should not miss.

Top swing trading ideas you should not miss!
by 5paisa Research Team 08/10/2021

Best Swing Trading ideas based on price and volume percentage surge. Home First, Indiamart Intermesh, Eris Lifesciences.

Price and volume are two of the most prominent inputs used by traders across the world while swing trading. When used in isolation, they reveal very little but when used in conjunction, they help us to sort the wheat from the chaff. So, this swing trading system is based on the deadly combination of price and volume percentage surge, which helps us to discover high probability swing-trading candidates. 

So, here is the list of stocks that fulfil the criteria of volume and price surge and as a result, they flash in our swing-trading system:

  1. Home First Finance Company: The stock rose over 4% on Friday. The stock’s daily range was greater than its 10-day average range. In addition to this, the volume for the day was greater than its previous trading session. Furthermore, it was greater than 10 and 30-days average volume. As a result, the stock met the norms of the swing trading system. In the near term, the stock has the potential to touch levels of Rs 650, while on the downside the support is seen around levels of Rs 605.

  1. Indiamart Intermesh: The stock has formed a bullish candle on Friday as it jumped over 4%. The stocks' daily range on Friday was greater than its 10-day average range. Additionally, the volume for the day was greater than its previous trading session and it was the highest since September 08. With price and volume criteria met, this stock looks ripe for a decent up-move from current levels in the coming days, hence, swing traders can keep this on the radar for up-move towards the level of Rs 9250, while immediate support is seen around Rs 8620.

  1. Eris Lifesciences: The stock had risen over 2% on Friday. Interestingly, the stock has met the criteria of volume and price surge on Thursday. The volumes were higher than its previous trading session and it was higher than 10 and 30-days average volume. In addition to this, the daily range of the stock was greater than its 10-days average range. Considering the strong price movement witnessed in the stock along with volume uptick, Swing traders should not miss this stock as it can touch levels of Rs 820 in the near to medium term. On the downside, support is seen around Rs 760 levels.

Next Article

What is the importance of Investment Planning?

What is the importance of Investment Planning?
by 5paisa Research Team 08/10/2021

Investment Planning is the essential component of a financial plan which enables individuals to fulfil their life goals and any aids to overcome any financial crisis.

Traditionally, Indian investors have always preferred fixed income securities where the returns are assumed and have compromised on the returns. Indian investors are risk aversive. But with the changing trend and popularity of stock market returns many of them are taking the risk and investing in equity. Investment planning is a must in today’s world without which you cannot fulfil your life goals and sometimes may end up in a financial crisis. If we are taking investment decisions today that will directly affect our future wealth, it would make sense that we utilize a plan to help guide our decisions. 

Some of the fundamental investment rules are:

  1. Start early  

  1. Invest regularly  

  1. Ensure adequate or higher returns on your investment.

Taking some time to put together a financial plan can reap tremendous benefits. Nobody plans to fail but many fail to plan. It is important for investors to realize that planning is very important.

We have listed some common mistakes in the investment planning process. It may be helpful to be aware of some common mistakes people make when approaching investments:

  • Don’t set measurable financial goals  

  • Make a financial decision without understanding its effect on other financial issues  

  • Confuse financial planning with investing  

  • Neglect to re-evaluate their financial plan periodically  

  • Think that financial planning is only for wealthy  

  • Wait until a financial crisis to begin investment planning  

  • Expect unrealistic returns on their investment  

  • Believe that investment planning or for that matter financial planning is primarily tax planning.
     

These are some of the most common misconceptions about investment planning. An individual should first adequately set their goals and objectives which are achievable and then they should proceed further with their plan. Investment planning provides direction and meaning to one’s financial decisions. It allows one to understand how each financial decision affects other areas of finances. By viewing each financial decision as a part of a whole, one can consider its short-term and long-term effects on life goals. One can also adapt more easily to life changes and feel more secure that goals are on track.

Next Article

Closing Bell: Nifty ends at a record high, Sensex surges by 381 points after RBI keeps rates unchanged.

Closing Bell: Nifty ends at a record high, Sensex surges by 381 points after RBI keeps rates unchanged.
by 5paisa Research Team 08/10/2021

Nifty ends at a record high, Sensex surges by 381 points after RBI keeps rates unchanged on October 8, 2021.

Domestic equity benchmarks Sensex and Nifty extended gains to a second straight day on Friday, October 8, 2021, after the RBI decided to keep the key rates unchanged and remain 'accommodative' after the scheduled review meeting. The market was cheerful about the announcements with the concerns about an earlier-than-expected tightening of monetary policy. Buying in oil and gas, IT, and PSU banking shares lifted the market. IT bellwether TCS was in focus ahead of the Q2 earnings announcement by the company.

On Friday, the Sensex closed 381 points or 0.6% higher at 60,059.1, while the broader Nifty 50 benchmark surged by 104.9 points to settle at a record of 17,895.2. Losses in pharmaceutical and FMCG counters limited the upside. The market extended rally for a second consecutive session and as a result, closed higher in four out of five sessions this week. It was mainly driven by positive global cues, and RBI policy, and the September quarter earnings.

On a sectoral basis, BSE IT and BSE Energy indices witnessed buying interest gaining 1.82% and 2.65%, respectively. The rest of the indices chose to remain subtle and traded almost flat on Friday. In the broader markets, the BSE Smallcap index ended 0.92% higher and the BSE Midcap index was up by 0.16% at the closing bell.

The Reserve Bank of India in its policy review meeting, kept the key lending rate or the repo rate steady at 4%, while the reverse repo rate or the borrowing rate also stayed unchanged at 3.35%.

Reserve Bank of India Governor Shaktikanta Das in his policy address said that, "There should not be any concern about the adequacy of liquidity in the banking system to support recovery or financial markets. Our entire approach is of gradualism, we don't want suddenness or surprises".

With bullish sentiments flowing in the markets, Reliance Industries, Wipro, Infosys, Tata Motors were the top gainers of the day, while SBI, NTPC and Maruti Suzuki were the top losers.

Next Article

TCS Q2 net profit climbs 14% as shares touch new high

by 5paisa Research Team 08/10/2021

Tata Consultancy Services Ltd (TCS) on Friday reported a 14% increase in consolidated net profit for the second quarter, as strong demand for IT services helped it won new clients and pushed its stock to a new high.

India’s biggest software services exporter said it posted a consolidated net profit of Rs 9,624 crore for the July-September quarter, up from the adjusted net income of Rs 8,433 crore a year earlier.

Revenue from operations climbed 17% to Rs 46,867 crore from Rs 40,135 crore a year earlier.

Ahead of the results, TCS shares hit a new high at Rs 3,990 on the BSE in intra-day trade, before closing at Rs 3,935.30 apiece on profit-taking.

The company's board approved a Rs 7 per share interim dividend for the shareholders.

Other key details:

1) TCS added five new clients in $100-million-plus category during Q2, taking the total to 54 customers.

2) It also added 17 new clients in $50-million-plus band, taking the total to 114 clients.

3) Manufacturing vertical recorded 21.7% growth, followed by life sciences and healthcare with 19% growth

4) Retail and consumer products segment posted growth of 18.4%, and BFSI recorded 17% growth in Q2.

5) North America, TCS’s largest market, clocked 17.4% growth. The UK business grew 15.6% and India at 20.1%.

Management Commentary:

TCS managing director and CEO Rajesh Gopinathan said that the strong and sustained demand environment is “a once-in-a-decade opportunity” for the company to position itself as the preferred growth and transformation partner for its customers.

“We are using the growth tailwind to invest in strengthening relevant capabilities and building out a comprehensive portfolio of offerings that caters to a broader set of stakeholders in the enterprise across business cycles, strengthening our brand, and making our business more resilient,” he said.

TCS finance chief Samir Seksaria said strong growth and disciplined execution helped the company overcome headwinds from currency and supply-side inflation and deliver expanded margins.

“Our industry-leading profitability and strong cash conversion give us the wherewithal to make the right investments needed to build out the business of the future,” he said.

Next Article

Chart Busters: Top trading set-ups to watch out for on Monday.

Chart Busters: Top trading set-ups to watch out for on Monday.
by 5paisa Research Team 11/10/2021

On the last trading session of the week, the benchmark index has opened with an upside gap but thereafter traded in a narrow range. The index has failed to mark a fresh all time high on Friday. On the daily chart, the index has formed a Doji candlestick pattern, which indicates uncertainty near all-time high level. However, the Nifty Midcap 100 and Nifty Smallcap 100 has marked fresh all-time high.

Here are the top trading set-ups to watch out for on Monday. 

Xchanging Solutions: Considering the weekly chart, the stock has given a breakout of downward sloping trendline resistance as on the weekend of July 16, 2021, and thereafter witnessed a sharp upside of nearly 52 per cent. After registering the high of Rs 141, the stock has witnessed correction along with low volume. The correction is halted near the 61.8% Fibonacci retracement level of its prior upward move and it coincides with the 20-week EMA level.

On Friday, the stock has given downward sloping trendline resistance breakout on the daily chart. This breakout was confirmed by above 50-days average volume. Friday’s volume is highest after July 23, 2021, which indicates strong buying interest by market participants. Interestingly, the slope of short and long-term moving averages is rising which is a bullish sign. The 14-period RSI on the daily timeframe is in bullish territory and on Friday, it has surged above its prior swing high. The daily MACD stays bullish as it is trading above its zero line and signal line. The MACD histogram is suggesting a pickup in upside momentum. The technical evidence indicates a strong upside in the coming weeks. The prior high of Rs 141 will act as crucial resistance for the stock. While on the downside, the zone of Rs 112-113 is likely to provide the cushion in case of any immediate decline.

Firstsource Solutions: The stock has formed a spinning top like candlestick pattern as on the weekend of July 23, 2021, and thereafter witnessed correction. The correction is halted near the 38.2% Fibonacci retracement level of its prior upward move. For the last 10 weeks, the stock is oscillating in a narrow range, which resulted in the formation of ascending triangle pattern on the daily chart. Due to the narrow range, the Bollinger band, which have developed on the basis of the last 20-days volatility, has been contracted significantly. This is an early indication of expansion in volatility.

Currently, the stock is on verge of giving a breakout of ascending triangle pattern on the daily chart. In addition, dramatically increased volume indicates that there was a good chance that the upper trendline resistance of ascending triangle would be taken out. The momentum indicators and oscillators are also supporting the overall bullish price structure. The 14-period RSI on the daily and weekly chart is in bullish territory. Furthermore, in the recent sideways to corrective mode, the RSI has taken support near the 60 mark, which indicates that the stock is in a super bullish range as per RSI range shift rules. Going ahead, in case, if the stock is sustaining above the zone of Rs 214-Rs 216, we may witness a sharp upside in the stock. On the downside, the 20-day SMA is likely to act as short-term support for the stock.

 

 

 
 

Next Article

This stock has gained over 400% and meets the Trend Template of Mark Minervini.

This stock has gained over 400% and meets the Trend Template of Mark Minervini.
by 5paisa Research Team 11/10/2021

From the low of Rs 118.25, which was registered in the last week of March 2020, the stock Uflex Limited has gained over 420%. Currently, it has given a downward sloping trendline breakout on the weekly chart.

The stock of Uflex Limited has formed a hammer candlestick pattern as on the weekend of March 27, 2020, and thereafter marked the sequence of higher tops and higher bottoms. From the low of Rs 118.25, the stock has gained over 420% in 80-weeks.

In the current week, the stock has given a breakout of downward sloping trendline resistance formed by connecting swing highs from July 2021. Further, this breakout was supported by a robust volume of more than 5 times of 50-weeks average volume, indicating strong buying interest by market participants. The 50-weeks average volume was 17.73 lakh while in the current week the stock has registered a total volume of 97.09 lakh.

Currently, the stock is meeting the criteria of Mark Minervini's Trend Template. The current market price of the stock is above the 150-day (30-week) and the 200-day (40-week) moving averages. The 150-day moving average is above the 200-day moving average. Since the last 326 trading sessions, the stock is trading above its 200-day moving average.

The 50-day (10-week) moving average is also above both 150-day and 200-day moving averages. The current stock price is above the 50-day moving average. Also, the current stock price is 105% above its 52-week low and currently, it is trading at all time high.

In the last couple of weeks, the stock has outperformed the frontline indices. Also, it has relatively outshined the Nifty 500 with a decent margin. The relative strength comparison with Nifty 50 and Nifty 500 is marking the higher high.

The momentum indicators and oscillators are also portraying a bullish picture. On all the major timeframes, the leading indicator 14-period RSI is in bullish territory. Most importantly, on the weekly chart, the RSI has taken support at the 60 mark and started rising higher, which indicates range shift as per the RSI range shift rules.

Talking purely about the trading levels, the zone of Rs 675-Rs 685 is a crucial resistance for stocks and the level of Rs 545-Rs 525 will act as crucial support for the stock.