1. Prices often moves in channel, channels may not be perfectly rectangle. Channels could be triangular channels, upward or downward rectangular channels.
2. Identifying those channels will allow trader to (A) be on the right side of the market trend (B) Make good entry & exit.
3. For identification one should start with identifying long term major trending channels, on extrapolating those channels will be then useful in getting idea about future major resistance/support & possible breakdown/breakout points to be kept in mind.
4. The chart shared is of NIFTY50 Index on Weekly timeframe, you may see there are actually 2 major channels in place (1) Blue Lines major channel 1 (2) Black Line major channel 2.
5. Now you will see many small channels inside these major channels. You now have long term trend in place and also have an idea about the current channel on going or completing or starting.
6. Keep in mind that identifying channel will require at least 2-3 data points which on connecting will become channel. So initially you need to observe and once identified will allow you to take a trading call.
Identifying the current channel in Nifty
1. The current channel formation is small narrowing channel downward sloping. If you closely see downward sloping narrowing channel often indicates supply drying up and as a result such channel breaks out on upside. #tradingthechannels
2. Now in trading you have to consider both possibilities with currently identified channel as I projected future lines based on major channel lines. This channel may break down in that case prices me test the major blue channel line.
3. On upside 9500 is acting as resistance which is the conjunction of 2 resistance line (Blank line & red line).
4. For now once can follow small red channel which is in action, and revisit again once that is violated.
Which insurance company is best to choose after doing proper research on that insurance policy ?
🧵👇 A Thread 🧵👇
1/ Buying an insurance policy is the toughest job as there are many jargons & exclusions are used into it. But, after doing proper research on that insurance policy, you have found that you will buy that plan. Now, the question arises, which insurance company is best to opt for ?
Following is the parameters to check while buying policy from the insurance company :-
1/ Car Insurance is a risk-sharing contract where the insurance company pays the damages incurred due to accident, theft, fire, etc. and in return you have to pay the premium.
2/ Should you buy car insurance ? In India, as per the Motor Vehicle Act, it is mandatory that all vehicles that are operated in public space must have car insurance. Without it, you can be a fine of ₹2,000 and/or imprisonment of jail for 3 years for not having car insurance.
What do you mean by NPA Divergence Reporting in Banks ?
A Thread 🧵👇
1/ Banks give out loans to a lot of people, naturally, some of them are not able to repay their loans. If the person fails to repay interest or principal amount within 90 days of the due date, they become a Non-Performing Asset for the bank.
2/ Banks lose the interest amount as well as their capital. But they do not lose the full amount. If the collateral is attached to the defaulting loan, banks can sell the collateral and recover some amount of the loan turned bad.
1/ The Cash Flow statement of a bank is quite different from that of normal businesses. The primary reason being that the bank’s operation is that of accepting deposits and advancing loans. This usually forms the Cash Flow from the Financing part for other businesses.
2/ For a Bank, Cash Flow for Operations (CFO) contains adjustments related to the Bank's core operations, i.e, accepting deposits, and advancing loans. Giving out more loans means an outflow of cash, hence advancing loans reduce the cash flow from operations.