I came up with the following topics to analyze in depth when analyzing companies, can you think of any more?

Retail businesses across India reported a growth of 15% in sales as compared to pre-pandemic levels (August 2019), according to a survey by the Retailers Association of India (RAI).

In August 2022, the growth in sales compared to pre-pandemic times is noticeable across regions too:

• Sales in East India grew by 19%
• South India showed a growth of 12%
• North India indicated 18%
• West India showed a growth of 11%
  

Sales across categories show a steady increase, with sports goods indicating a strong performance followed by footwear, QSR and jewellery performing better than other categories in August 2022.

Inflation (CPI) in US stood at 8.3% in August, higher than the estimated 8.1%.

Adani Realty is in advanced talks for a merger with Mumbai-based DB Realty, according to a media report.

The transaction, which may be the largest real estate deal in India, will pave the way for the listing of the real estate arm of billionaire Gautam Adani.

This comes after DB Realty’s talks with Godrej Properties did not go forward.

https://www.youtube.com/watch?v=-_jOwk6GsXo

There are broadly 2 types of analysis in the stock market: 
1. Technical Analysis

2. Fundamental Analysis

We are hereby going to discuss technical analysis in detail:

Technical Analysis:  It can be defined as assessing the stocks or investment opportunity on factors like the price of a stock, the volume of trading, high- low prices, and such short-term factors. Technical analysts are short-term traders and are hardly interested in knowing a company’s fundamentals. Although it is good to understand and analyze the fundamentals of companies and then make a prudent choice of the company you want to trade in. But generally speaking, such traders completely rely on market demand and supply factors to trade in various stocks.

In technical analysis generally, traders hold the following assumptions:

•        The market tells everything: The market generally runs on a trend. If on a fine day stock price is fluctuating beyond normal, it might be an indicator that a high-profile investor is acting on some news. If it’s a good trend and depicts growth, one should buy the stock.
• History repeats itself: The stock market can be compared to human psychology. So it will repeatedly tend to behave in the same way as in its past. For instance, if the stock market is showing an upward trend, then investors will enter into buying to be in alignment with the trend and vice versa.

Now, that we broadly know the assumptions in the stock market, let’s talk about how to analyze it through charts. The most popular and widely used chart is the candlestick chart. Let’s discuss that in detail.

Candlestick Chart

The candlestick chart is made of 3 components:

•      Upper body: It depicts the high point the stock reached.

•        Lower body: It depicts the low point the stock reached

•      Central body: It depicts the open and close points of the stock.

Characteristics of Candlestick

So generally there can be bearish candles or bullish candles. Bearish candles are one when the closing price is less than the opening price. This represents that investors are bearish on stocks. And generally, investors sell their stock in such conditions.

Bullish candles are one when the opening price is more than the closing price. This represents that investors are bullish on the stock. And generally, investors tend to buy stocks in such conditions.

Bearish candles are generally represented in red and bullish candles in green. Although color coding may vary on the choice of trader. They may use some different colors also.

And also if you will analyze the charts closely you will notice that there are varied candles of short and long lengths. Short candles simply represent that stock is not getting traded much, and generally, such stocks should not be dealt with. Similarly, large candles represent that stocks are getting actively traded and such stock can be analyzed with much more dexterity.

Conclusion

There are various types of candlestick formations that enable an investor to devise a trading strategy for a particular stock. And by and large candlesticks formations are an effective tool to study stocks and to be able to trade wisely and prudently.

But remember if you are a long-term investor then you should never go long on any stock basis technical analysis.  For long-term investors, both fundamental and technical analysis is equally important. 

For your long-term , positional, swing & intraday analysis

| 'Stop-loss order' can minimize your loss— Mental peace

A stop-loss order executes when the share price falls to a level that you set. Suppose you buy a share of $10 and set a 5% trailing stop(mean you will sell if the price drops 5% from the highest price). Stock picks up $15 means your stop-loss is $14.25, and so on...

| Your on-screen price is not right many times

Many times the price displayed on the screen is NOT correct. Either the stock is undervalued or expensive. For self-directed investors, this presents a fantastic opportunity. Do your homework and learn the ins and outs of the industry. If your study indicates that the stock will be higher this time next year, you may be able to get a good deal.

This goes for the whole market, too. Markets are driven by sentiment as well as fundamentals.

| Take a deep in 'Dark Pool.'

Generally, if you own a stock, you can sell it to someone else without going through a stock exchange. The exchange makes it easy to find buyers and sellers but isn't legally required. Someone who wants to sell a lot of stock without moving the price too much may prefer a dark pool.

Dark pools are typically attractive to large buyers and sellers to trade large volumes on thinly traded stocks. US holds 40% dark pools in daily trading, whereas SEBI is almost clueless.

| Are fund charges eating into your returns? — Stress the value

Whether you float, drown, or make a draw match, the fund manager always has their piece of cake.WHICH magazine said In the UK, the OCF or annual management charge typically ranges between:

0.75% -1.25% in most actively managed funds. 

Up to 1.8% turnover cost.

| HFT can win the game in nanoseconds, beat the fund manager

HFT is an algorithmic trading system that is automated. Computers are programmed to examine stock and futures prices and trade on the difference. This fluctuation might last for only a few microseconds. To the naked eye, they don't even exist. Blink, and you'd miss them. HFT traders rely on trading at near-lightspeed to profit from these inconsistencies. HFT holds 50% trade volume of the US and Indian market.