The analysis of stock market indices to predict the state of the markets is an important part of technical analysis. Mr. Narendra Modi coming to power as the Prime Minister of India in June 2014 led to the hopes of a long-term bull market.

As it can be seen from the chart, soon after the new Prime Minister was elected, NIFTY witnessed a steady upmove for 8 consecutive months (July ’14- Feb ’15).

The sharp correction in February 2016 (NIFTY close price: 6987), combined with the constant downtrend in the past 1 year (March ‘15- Feb ‘16) negated market hopes of the start of a long-term bull market completely.

To read more visit : https://www.elearnmarkets.com/blog/fii-and-dii-analysis/

A Broadening Triangle is a relatively rare triangle pattern which occurs when there is a lot of volatility in a security.

It is formed when the prices forge higher highs and lower lows consecutively.

To read more visit : https://www.elearnmarkets.com/blog/broadening-triangle-pattern/

Have you been in the stock market for quite a few years and now you are considering buying or selling options?

If yes, then selecting the strike price is the most important decision to make.

When you pick your options strike price, it depends on a number of key decisions, likes:

What are you expecting the move in the underlying stock over a specific period and also what price are you willing to pay for buying an options contract?

To read more visit : https://www.elearnmarkets.com/blog/options-strike-price/

Breadth Indicators help in understanding the internal strength of the market. Sometimes you will not be able to understand the direction of the market trend by just looking at the prices of the market alone.

Breadth indicators help us in understanding how the “market of stocks” is doing instead of just understanding the stock market.

Often the Breadth indicators signal a market move before it happens through divergences, where the markets are making a new move but many stocks are not participating in that move.

In this blog, we will discuss the basics of breadth indicators and the 14 most used breadth indicators which traders should know when analyzing the trend move in the market.

To read more visit : https://www.elearnmarkets.com/blog/breadth-indicators-trader-should-know/

Key Takeaways:

An auction process is a mechanism where exchange auctions the investor’s stock holding when the person had sold the stock but is unable to deliver it within a stipulated time period.

An auction can be a live auction, online auction or sealed bid auction.

Before the start of an auction, the buyers are allowed to check the items on sale and examine the same.

The minimum or lowest auction price will be 20% below the closing price of the day before the day of the auction

The exchange conducts an auction on T+2 day and on behalf of the defaulting seller, it purchases back the stock from the Auction Participant.

To read more visit : https://www.elearnmarkets.com/blog/auction-process-simplified/

Option Greeks? Is this sounding Greek to you? If yes, then we will help you in decoding this jargon in this week’s blog.

The price of an option is influenced by a number of factors that can either hurt or help traders based on the positions they have taken in that option.

One should note that factors like Option Greeks, Options Premiums and demand-supply of the markets influence each other. Although these factors work independently, they are all linked with one another. The final outcome of all these factors can be seen in the option’s premium.

To read more visit : https://www.elearnmarkets.com/blog/5-option-greeks-that-measure-risk/

MACD Indicator- We, the Homo sapiens, want to live within our comfort zone. We love to change but hate being changed. I can hear an echo. Thanks for converging your thought with that of mine. It has to be. After all, you and I are traders. Hence keeping our thought equality I would write this blog on a very simple and easy-to-use tool Moving Average Convergence Divergence. Yes, it’s one of our most used indicators. Right?

To read more visit: https://www.elearnmarkets.com/blog/interpretation-of-macd-indicator/

In an interesting session as a part of the highly popular Face2Face series, conducted by Elearnmarkets, Mr Vivek Bajaj, Co-founder of Elearnmarkets, invited Mr Vishal Malkan, a successful stock market investor with many years of experience, to decode A 5-Star Relative Strength Index (RSI) Strategy.

In this blog, we will be decoding the basics of the Relative Strength Index indicator and its multiple applications in the stock market for technical analysis. Following this, Mr Malkan will start discussing his strategy – a 5-star strategy.

To read more visit : https://www.elearnmarkets.com/blog/a-5-star-rsi-strategy/

According to Wikipedia, Causality (also referred to as causation, or cause and effect) is the agency or efficacy that connects one process (the cause) with another process or state (the effect), where the first is understood to be partly responsible for the second, and the second is dependent on the first.

In general, a process has many causes, which are said to be the causal factors for it, and all lie in its past. An effect can, in turn, be a cause of many other effects. You must be thinking that why I am saying all these things. Right? It is just to increase your curiosity. You will soon be able to relate to it.

To read more visit: https://www.elearnmarkets.com/blog/macd-histogram-demystified/

The Gravestone Doji is a candlestick pattern that shows the opening and closing of the candle at the low of the day and is quite bearish.

It is typically seen at the end of an advance where the upper shadow represents new high ground for the move.

The fact that prices end the day at the opening (after all the work at higher levels) is indicative of a change in psychology and is really a sign of exhaustion.

To read more visit : https://www.elearnmarkets.com/blog/gravestone-doji-candlestick-pattern/