NDPMS Wealth Management

As predicted successfully last week in our previous analysis, Nifty had a humpty dumpty  fall and fell over 3% last week. Nifty was facing heavy resistance at 8500 levels with option data suggesting a positive bias. Monetary policy on Tuesday, June 02, 2015, provided adequate reasons for stakeholders to exit their long positions which were made the week before. Apparently the institutional investors haven't made short positions in stocks by now but the current options data suggest the shorting is on the way. It is still not the correct time to enter the markets with a long bias. However those who are looking for investments can keep accumulating but again, don't go all in. It is quite expected from Nifty to touch 7800 levels before entering into any significant dominant trend to the upside. Technical Analysis Weekly Chart: Nifty on weekly chart completed its 5th sub wave of 3rd major wave in uptrend in first week of March. Going further it sta...

The word stop loss is an order to exit either a long or a short position once the price of the position crosses a particular predetermined price level. It is a tool which help investors to control their risk of loosing money more than their pocket allows. Mainly used in intraday trading. It can prevent small losses becoming the large ones. It can save you from unexpected news that come in the market because of which there is a sudden price action against your position. The stop loss facility is free of charge and no higher commission is charged. Traders can trade with the time freedom and freedom from monitoring the same stock again and again. Most of the times investors have experienced it that if they do not placed the stop loss order and assumed that they will exit the stock manually once price reached their exit level, the have suffered more losses just because they could not exit on time due to higher volatility. Here the stop loss comes into picture. Though many investors...