Tag: how to invest in stock market

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How To Invest In Stock Market Using CANSLIM Parameters

CANSLIM_Stocks

Any investing strategy must answer two crucial questions:

  • What to invest in?
  • When to invest (and exit)?

The first question pertains to the “Stock Selection” aspect of the strategy, which comprises rules and techniques for “Stock Screening.” The CANSLIM investing system offers such stock selection tools, developed after a rigorous back-testing on ~100 years of stock data. Simple yet strong, these tools equip investors with a faster, effective, and comprehensive analysis of a stock:

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Share Market Tips: Not Every Stock Market Follow-through Works

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MarketsmithIndia

In the stock market, nothing works 100% of the time. That’s why you have to be prepared to deal with failed signals. In CAN SLIM, the market itself – the M in CAN SLIM – is the most important factor for making money. Your chances of grabbing profits in growth stocks increase when the market is acting right.

According to the O’Neil methodology, every major stock market bottom featured a follow-through day. It essentially confirms that a fledgling uptrend in stocks is underway.

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Weekly Big Picture : Metal and Auto Stocks Most Affected.

Weekly Action

Nifty, -0.9%; Sensex, -0.3%; Nifty Midcap, -6.9%; Nifty Smallcap, -7.9%; Model Portfolio, 0%.

Market Pulse : Rally Attempt

Weekly Market Review

Nifty, after a gap-up opening, gave up its gains to close flat for the day. The index advanced for the fourth consecutive day. However, due to massive fall on Monday (-12.9%), Nifty declined around 1% for the week.

Barring Nifty IT (+2.1%), all the sectoral indices closed in negative territory for the week. Nifty Metal (-8.3%) and Auto (-8.1%) declined the most.

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Daily Big Picture: A Silver Lining is seen as Government Announces 1.7 Lakh Crore Relief Funds

Today’s Action

Nifty, +3.9%; Sensex, +4.9%; Nifty Midcap, +3.4%; Nifty Smallcap, +3.2%; Model Portfolio, 0%

Daily Market Review

Market Pulse:Rally Attempt

Nifty extended its gains for the third consecutive trading session and advanced more than 13% after suffering its worst single day fall on Monday. Volume was on the higher side as against yesterday’s session. Breadth has improved slightly, with 39 of the 50 Nifty stocks closing in the green. Further, today’s action qualified as day three of an attempted rally. So, we are changing the market status to a Rally Attempt from a Downtrend. Tomorrow opens the window for a follow-through day on Nifty. If we advance 1.5% or more on volume that is higher than today, we will change the status to a Confirmed Uptrend. Ideally the follow-through day should occur between the fourth and the seventh day. The follow through days that occur after the 10th day are more likely to fail.

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Daily Big Picture: Financial Stocks Shine as Nifty improves

Today’s Action

Nifty, +6.6%; Sensex, +7%; Nifty Midcap, +3.3%; Nifty Smallcap, +3.3%; Model Portfolio, 0%

Daily Market Review

Market Pulse :“Downtrend”

Nifty traded constructively after a negative opening forming higher highs on the hourly chart and closed the day near 8,300, posting significant gains. Volume was like yesterday’s session. Breadth has improved slightly, with 38 of the 50 Nifty stocks closing in the green. Reliance Industries (+14.7%), Hdfc Bank (+11.6%), and Kotak Mahindra Bank(Nse) (+11.9%) were the top gainers on Nifty. Further, today’s action qualified as day two of an attempted rally.

On the sectoral front, all the sectoral indices closed in the green. Nifty FinService (+9.7%) gained the most followed by Nifty PVT Bank and Nifty Bank, which gained 8.5% and 8.4%, respectively. The advance-decline ratio was in favor of advancers. Of 2,115 stocks traded, 1063 advanced, 703 declined, and the remaining traded flat.

We continue to suggest a cautious approach until the general market conditions improve. Most of the stocks continue to incur technical damage, with many moving deeper into their respective bases and breaking below logical levels of support. Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. We will continue to monitor quality ideas with rising relative strength lines and superior fundamentals that could be set up to buy when and if the market begins to stabilize.

Key News

Indian crude oil production declined 6.4% to 2.39M tonnes in February versus 2.56M tonnes in the year-ago period.

U.S. lawmakers and Trump administration officials have agreed on an agreement on an estimated $2T economic stimulus bill, aiming at shielding the U.S. economy from the repercussions of the coronavirus pandemic.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.