Trend lines are a trader’s friend. Know why? · 2019. 1. 18. · Trend lines: At the foundation...

Trend lines are a trader’s friend. Know why?

16th January, 2019

Trend lines: At the foundation of identifying “trends” is a tool called the trend line.

A trend line helps technical analysts to determine the current direction in market prices.

Technical analysts believe in the phrase ‘The trend is your friend’ , and identifying this trend is the first step in the process of making a good trade.

A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance.

They show direction and speed of price, and also describe patterns during periods of price contraction.

Source –Own observations and findings

Trend Lines:

Focus

• Direction : Going up or Down

• Speed : Degree

• Patterns : Triangle, Rectangle and Flag

• Bar charts or Candlesticks are more preferable to draw trendlines.

Source - Own observations and findings

Direction - Escorts

Source – Spider Software Pvt LTD 16:J A S O N D 17:J F M A M J J A S O N D 18:J F M A M J J A S O N D 19:J

Lnr IRIS

Source : www.SpiderSoftwareIndia.Com

250

300

350

400

450

500

550

600

650

700

750

800

850

900

950

1000

Lk

60.00

120

180

744.30

31.96

Price

Vol

ESCORTS [N958] 744.30, -1.23%

Wkl

5

541.00

7

9

10

0.00

16/01/19 Wed

Op 752.50Hi 764.80Lo 737.00Cl 744.30

Qt 31.96

Direction - TISCO

Source - Spider Software Pvt LTD 16:J J A S O N D 17:J F M A M J J A S O N D 18:J F M A M J J A S O N D 19:J

Lnr IRIS

Source : www.SpiderSoftwareIndia.Com300

320

340

360

380

400

420

440

460

480

500

520

540

560

580

600

620

640

660

680

700

720

740

Cr

2.00

4.00

476.55

0.36

Price

Vol

TATASTEEL [N3499] 476.55, 0.32%

Dly

21

24

D 0 D 0 R 4:25 D 0

489.05

07/02/18 Wed

Op 668.00Hi 682.20Lo 657.00Cl 661.80

Qt 0.68

Speed – L&T

Source - Spider Software Pvt LTD

18:O29 N 5 12 19 26 D 10 17 24 31 19:J 7 14

Lnr IRIS


1210

1220

1230

1240

1250

1260

1270

1280

1290

1300

1310

1320

1330

1340

1350

1360

1370

1380

1390

1400

1410

1420

1430

1440

1450

Lk

25.00

50.00

75.00

1357.45

12.60

Price

Vol

LT [N11483] 1357.45, 1.23%

Dly

45 DEGREE

0.00

16/01/19 Wed

Op 1342.90Hi 1357.90Lo 1336.00Cl 1357.45

Qt 12.60

Speed – Pharma Index

Source - Spider Software Pvt LTD 15:S O N D 16:J F M A M J J A S O N D 17:J F M A M J J A S O N D 18:J F M A M J J A S O N D 19:J

Lnr IRIS

Source : www.SpiderSoftwareIndia.Com 8000

8250

8500

8750

9000

9250

9500

9750

10000

10250

10500

10750

11000

11250

11500

11750

12000

12250

12500

12750

13000

13250

Cr

2000

4000

9066.45

1309.35

Price

Vol

NIFTYPHARM [N59917] 9066.45, 2.23%

Mon

0

38.20

7997.39

50.00

9147.47

61.80

10297.56

76.80

11759.52

81.00

12168.88

89.00

12948.59

4

9939.05

0.00

16/01/19 Wed

Op 8890.55Hi 9068.05Lo 8683.80Cl 9066.45

Qt 1309.35

Speed – Tata Motors

Source - Spider Software Pvt LTD 18:J F M A M J J A S O N D 19:J

Lnr IRIS


180

200

220

240

260

280

300

320

340

360

380

400

420

440

Cr

6.00

12.00

18.00

185.75

4.11

Price

Vol

TATAMOTORS [N3456] 185.75, 3.02%

Wkl

9

45 DEGREE

0.00

16/01/19 Wed

Op 180.30Hi 198.30Lo 177.45Cl 185.75

Qt 4.11

Patterns – Reliance Industries


14:AM J J A S O N D 15:J F M A M J J A S O N D 16:J F M A M J J A S O N D 17:J F M A M J J A

Lnr IRIS


420

440

460

480

500

520

540

560

580

600

620

640

660

680

700

720

740

760

780

800

820

Cr

2.00

4.00

1140.95

0.35

Price

Vol

RELIANCE [N2885] 1140.95, 1.00%

Dly

BREAK AWAY GAP

JUMP IN VOLUME

19

D 0 D 0 D 0 D 0

0.00

23/08/17 Wed

Op 782.42Hi 793.28Lo 776.58Cl 791.03

Qt 0.38

Patterns – Falling Wedge in Hindalco


14:D 15:J F M A M J J A S O N D 16:J F M A M J

Lnr IRIS

Source : www.SpiderSoftwareIndia.Com 60.00

65.00

70.00

75.00

80.00

85.00

90.00

95.00

100

105

110

115

120

125

130

135

140

145

150

155

160

Cr

5.00

10.00

207.85

1.62

Price

Vol

HINDALCO [N1363] 207.85, 0.97%

Wkl

1

2

8

1 2

12

45 DEGREE

Patterns – Ascending Triangle in Reliance


05:O06:J M J A O D 07:F J J A O D 08:F J J A O D 09:F J J A O D 10:F J J A O D 11:F J J A O D 12:F J J A O D 13:F J J A O D 14:F J J A O D 15:F J J A O D 16:F J J A O D 17:F J J A O D 18:F J J A O D

Lnr IRIS


200

250

300

350

400

450

500

550

600

650

700

750

800

850

900

950

1000

1050

1100

1150

1200

1250

1300

Cr

50.00

100

1140.95

7.26

Price

Vol

RELIANCE [N2885] 1140.95, 1.76%

Mon

1

1149.90

5

723.22

8

12

13

574.95

14

747.25

15

D 0

0.00

16/01/19 Wed

Op 1125.25Hi 1145.00Lo 1081.10Cl 1140.95

Qt 7.26

Patterns - Flag and Pennant


17:J17 24 31 A 7 14 21 28 S 4 11 18 25 O 9 16 23 30 N 6

Lnr IRIS


200

220

240

260

280

300

320

340

360

380

400

420

440

460

480

500

520

540

560

580

600

620

Lk

50.00

100

150

753.80

9.58

Price

Vol

GRAPHITE [N592] 753.80, -5.13%

Dly

9

10

D 0

Pattern - rectangle


04:SD 05:F J J A O D 06:F J J A O D 07:F J J A O D 08:F J J A O D 09:F J J A O D 10:F J J A O D 11:F J J A O D 12:F J J A O D 13:F J J A O D 14:F J J A O D 15:F J J A O D 16:F J J A O D 17:F J J A O D 18:F J J A O D

Lnr IRIS

Source : www.SpiderSoftwareIndia.Com

60.00

80.00

100

120

140

160

180

200

220

240

260

280

300

320

340

Cr

25.00

50.00

75.00

304.45

18.83

Price

Vol

SBIN [N3045] 304.45, 2.89%

Mon

0

351.50

6

327.47

7

151.50

9

325.25

11

151.97

12

240.71

22

23

Pattern – FLAG


14:D15:J F M A M J J A S O N D 16:J F M A M J J A S O N D 17:J F M A M J J A S O N D 18:J F M A M J J A S O N D 19:J

Lnr IRIS


750

800

850

900

950

1000

1050

1100

1150

1200

1250

1300

1350

1400

1450

Lk

100

200

300

1353.30

80.82

Price

Vol

LT [N11483] 1353.30, -1.19%

Wkl

0D 0

Pattern – BankNifty ascending triangle


05:J S O D 06:F J J A O D 07:F J J A O D 08:F J J A O D 09:F J J A O D 10:F J J A O D 11:F J J A O D 12:F J J A O D 13:F J J A O D 14:F J J A O D 15:F J J A O D 16:F J J A O D 17:F J J A O D 18:F J J A O D

Lnr IRIS


5000

6000

7000

8000

9000

10000

11000

12000

13000

14000

15000

16000

17000

18000

19000

20000

21000

22000

23000

24000

25000

26000

27000

28000

Cr

2000

4000

27524.35

1317.16

Price

Vol

BANKNIFTY [N59906]27524.35, 1.34%

Mon

0

38.20

19130.14

50.00

20897.95

61.80

22665.76

19.00

16253.72

81.00

25542.1877.40

25002.85

23.60

16942.86

100.00

28388.65

4

13303.60

8

38.20

25824.82

50.00

26314.35

61.80

26803.88

19.00

25028.29

81.00

27600.4277.40

27451.07

23.60

25219.12

100.00

28388.65

12

14

Triangle and Diamond - Nifty


18:N5 12 19 26 D 10 17 24 31 19:J 7 14

Lnr IRIS


10375

10400

10425

10450

10475

10500

10525

10550

10575

10600

10625

10650

10675

10700

10725

10750

10775

10800

10825

10850

10875

10900

10925

10950

10975

Cr

50.00

100

150

10911.70

63.42

Price

Vol

NIFTY [N59901]10911.70, 0.23%

Dly

10/12 and 11/12

3

10557.70

high pcr and low vix19

21

10853.20

22

23

24

26

27

0.00

16/01/19 Wed

Op 10899.65Hi 10928.15Lo 10879.30Cl 10911.70

Qt 63.42

Data Points of Nifty @ 10900


INDIA VIX – 16.20 (Neutral)

(ahead of elections base is going to shift from 10 to 13 and from 20 to 25)

PCR – 1.20 OF SAME SERIES (Neutral).

DAILY RSI – AT 55 (Neutral)

INR – WAS AT 71.05 (corrected from 74.50) (Chances of 72.50)

Crude was at 60.50 (substantial fall)

World Markets : Down / Mixed

Nifty Bullish Break out – Heading towards 11200.


17:JA S O N D 18:J F M A M J J A S O N D 19:J

Lnr IRIS


9800

9900

10000

10100

10200

10300

10400

10500

10600

10700

10800

10900

11000

11100

11200

11300

11400

11500

11600

11700

Cr

500

1000

10897.25

300.15

Price

Vol

NSE NIFTY [N59901]10897.25, 0.95%

Wkl

25

28

29

Technical Analysis: When to Buy/Sell Fundamental Analysis: Why to Buy/Sell

Question & Answer

Queries should be specific to stock that are in FNO segment.

21

RATING SCALEBUY – A condition that indicates a good time to buy a stock. The exact circumstances of the signal will be determined by the indicator that an analyst is using.

SELL – A condition that indicates a good time to sell a stock. The exact circumstances of the signal will be determined by the indicator that an analyst is using.

Stop Loss Order – An instruction to the broker to buy or sell stock when it trades beyond a specified price. They serve to either protect your profits or limit your losses.

FUNDAMENTAL RESEARCH TEAMRusmik Oza Arun Agarwal Amit Agarwal Nipun Gupta Deval Shah K. Kathirvelu

Head of Research Auto & Auto Ancillary Transportation, Paints, FMCG Information Tech, Midcap Research Associate Support Executive

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

+91 22 6218 6441 +91 22 6218 6443 +91 22 6218 6439 +91 22 6218 6433 +91 22 6218 6423 +91 22 6218 6427

Sanjeev Zarbade Ruchir Khare Jatin Damania Cyndrella Carvalho Ledo Padinjarathala

Cap. Goods & Cons. Durables Cap. Goods & Cons. Durables Metals & Mining, Midcap Pharmaceuticals Research Associate

[email protected] [email protected] [email protected] [email protected] [email protected]

+91 22 6218 6424 +91 22 6218 6431 +91 22 6218 6440 +91 22 6218 6426 +91 22 6218 7021

Teena Virmani Sumit Pokharna Pankaj Kumar Jayesh Kumar Krishna Nain

Construction, Cement, Buildg Mat Oil and Gas, Information Tech Midcap Economist M&A, Corporate actions

[email protected] [email protected] [email protected] [email protected] [email protected]

+91 22 6218 6432 +91 22 6218 6438 +91 22 6218 6434 +91 22 6218 5373 +91 22 6218 7907

TECHNICAL RESEARCH TEAMShrikant Chouhan Amol Athawale

[email protected] [email protected]

+91 22 6218 5408 +91 20 6620 3350

DERIVATIVES RESEARCH TEAMSahaj Agrawal Malay Gandhi Prashanth Lalu Prasenjit Biswas, CMT, CFTe

[email protected] [email protected] [email protected] [email protected]

+91 79 6607 2231 +91 22 6218 6420 +91 22 6218 5497 +91 33 6625 9810

22

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Trend lines are a trader’s friend. Know why? · 2019. 1. 18. · Trend lines: At the foundation...

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