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Trade like bull and make fortune in capital market

Welcome to GujaratBull - a place to make fortune in capital market. At GujaratBull we interact with different type of people from nov...


 Basic rule of technical analysis 

  Minting money in capital market is not so hard either with technical analysis of stocks or fundamental analysis of stocks .The condition is that you follow system of  technical analysis or fundamentals .You need to stick with the rules  you have learned . On other side there is high chances of losing money  if you don't trust yourself and get confused by listening others. The rules of trading and investing are quite different.If your are trading is based on technical analysis and you are  listening guys of  fundamentals then forget making money in market. Here I am sharing real example which will clear doubts about  this basic theory .

My study of 7th July on #BankNifty 

On 7th July Bank Nifty was struggling to go up and there were hardly any expert who were advocating to buy it . My guess is that they were fearing immediate crash of bank nifty as NPA was hot subject on discussion .On previous day a leading financial news paper had added more fear  by pressing  issue of NPA . It had categorically written that NPA worries hanging on and that's why there are only few takers of Bank nifty and I was one of the few thanks to my rely on technical analysis ! 
       It was Friday on 7th July . Coincidently #JaggaJasoos was trending with #FridayFeeling ! I shared my feeling with  following tweet based on technical analysis .
    Now the result is loud and clear against us.On 10th July BankNifty made new life time high and at present it is trading near it! Once again so called experts proved wrong and technical analysis won . To make money in market you don't have to be Jagga Jasoos(Insider)  but follower of technical indicators !


  If you regularly file return then here is very important news for you . You will not be able to file your next  return if you have not linked your PAN card with your AADHAR card .Here is also a good news to solve the issue. You don’t need to go to an expert and pay fees for the same. You have not even to register on website . The simplest way is to SMS  to income tax  department from your registered mobile no !Below is steps to do so .

SMS to 567678 or 56161 from your registered mobile number in following format.
UIDPAN<SPACE><12 digit Aadhaar><Space><10digit PAN>
For example if your  AADHAR card no is 123456789123 and PAN card no is GUJBU2002R  then do following

 UIDPAN  123456789123  GUJBU2002R 

RBI credit policy

 Today RBI will review credit policy . RBI’s six-member Monetary Policy Committee (MPC) is meeting second time after demonetization .  Market is expecting  25 basis points cut in repo rate . Repo rate is short form of repurchase rate .It is also known as short term lending rate. RBI lends money to commercial bank as per this rate . Low repo rate is not only beneficiary to commercial bank but also to industry .  Commercial banks can lend money at low rate to industry if they get benefited  from RBI .
      In last meeting MPC had  left repo rate unchanged to 6.25 % . The decision was taken considering some internal as well as external factors .  The  main external factors which were considered by MPC were possible rate hike by US fed and rising oil price as well as US dollar . At present US federal reserve has preferred pause for rate hike but concern of rising oil price has not gone away . Rising oil prices is a  challenge to India’s growth. Economic Survey presented in Parliament has also confirmed this view. The main internal factors considered by MPC were situation after DeMo (demonetization) . After DeMo lending rates have already fallen by up to 1%. In spite of that   there was little enthusiasm  among borrowers which was also considered by MPC in keeping repo rate unchanged .  RBI, acknowledging the demonetisation factor had lowered its gross value added growth estimates for the current fiscal to 7.1% from 7.6% forecast earlier.
        Considering above factors  experts feel that stock market is unlikely to rally further with repo rate cut of 25 basis points .Any more rewards or rosy outlook will provide excuse to push market up though valuation is not so cheap. Any disappointment will pull market down . In that case Nifty's downside towards 8660 not ruled out .