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Trader | Investor | Trading Coach & Mentor Tweets on #StockMarket | #Stocks | #Investing | #Technical #Analysis #Psychology
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8 Jul 20
Rural India Theme 🇮🇳

Consumption - FMCG 🛒
🔵India's FMCG sector is estimated around $100 B in 2020
🔵Urban markets with a population share of 35% are driving 65% consumption in FMCG sector
🔵Rural markets with a population share of 65% are contributing 35% in FMCG sector

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Rural India Theme 🇮🇳

FMCG 🛒
🔵Rural India FMCG market is estimated around $35B & it is expected to reach $200B by 2025
🔵Rising income, more nuclear families & changing lifestyle are the factors to drive the growth
🔵Its a big opportunity for FMCG players to tap into

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Rural India Theme 🇮🇳

FMCG 🛒
🔵To grab the larger pie out this market FMCG players have started taking lot of initiatives & expanding their business in rural areas
🔵ITC has doubled its rural penetration last year
🔵Emami also added many new distributors in rural markets

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Read 3 tweets
30 Jun 20
🇮🇳 Agriculture theme🌾

Seeds 🌱
🔵Indian seed market is estimated around $4.5 Billion in 2020 & it is expected to grow with 13% CAGR to reach $9 Billion by 2024—25
🔵India contributes around 4% in Global seed market which lead by US & China with more than 65% market share

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🇮🇳 Agriculture theme🌾

Seeds 🌱
🔵India's seed market has grown by 12% in last 5 years v/s 7% growth in global seed market
🔵Seed market is dominated by grains with more than 50% market share
🔵Cotton leads the seeds market with 20% share followed by maize with 15% share

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🇮🇳Agriculture theme🌾

Seeds🌱
🔵With increasing awareness farmers have now started using better seeds to yield good production of crops
🔵With growing production there is immense potential & opportunity for India to increase its share in $70 Billion seeds market 🌍

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Read 4 tweets
25 Jun 20
🇮🇳 Agriculture theme 🌾

Agrochemicals🧪🌱🌿
🔵India is 4th largest producer of agrochemicals in the world with an estimated market of $4.5B & it is expected to reach $8.5B by 2025.
🔵Avg. consumption of pesticides in India is 0.65gm/ha versus global avg of 3 kg/ha.

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Agrochemicals🧪🌱

🔵Pesticides market is dominated by insecticides with more than 50% market share followed by Herbicides with 24% & fungicides with 18% market share.
🔵Herbicides segment is leading the growth due to increased awareness amongst farmers about its benefits.

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Agrochemicals 🧪 🌱

🔵Insecticides kills the insects, Herbicides helps in growth of plant while fungicides helps in preventing fungus growth on plant leaves
🔵With increased awareness farmers have started using it to yield better production & to grow their income

3/n
Read 5 tweets
23 Jun 20
🇮🇳Agriculture theme🌾

Fertilizers & Nutrients 🌱🌿
🔵Fertilizers market in India is estimated around INR 6 Trillon
🔵It is expected to reach INR 11 Trillon by 2025 with a CAGR growth of 11—12%
🔵India is second largest consumer of fertilizers in the World 🌍

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Agriculture theme🌾

🔵Coromandel, NFL & Chambel are the leading players of fertilizer industry in India
🔵We have witnessed good growth in fertilizers usage yet India's fertilizer consumption is lower than developed & emerging countries which is expected to pick up gng fwd.

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Agriculture theme 🌾

🔵Urea is one of the highest consumed fertilizer in the country as a source of Nitrogen
🔵DAP is the 2nd most consumed fertilizer in the country as source to increase Soil's PH
🔵Nutrients are the other source which a plant need for better fertility

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Read 5 tweets
21 Jun 20
Thread on Rural India 🇮🇳

Agriculture theme🌾
🔵65% of India's population lives rural areas & contributes 35% in India's consumption
🔵More than 70% of Rural population depends on Agriculture
🔵Per capita of farmers is $1000 vs India's per capita of $2000

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Agriculture theme 🌾

🔵Govt. intent to double farmer's income is at par with growth of India's per capita
🔵The incentives announced by Govt. in last 2yrs have already boosted the per capita income farmers by $200-$300
🔵It has resulted in increase in spendings of farmers

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Agriculture theme 🌾

🔵To play this theme we need to focus on various sectors which drives the consumption in Agriculture activities
🔵With a shortage of cattle dung & bio compost availability farmers need an alternative to improve soil's fertility

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Read 4 tweets
14 Jun 20
Inspiring Story To Read😇

Once, Lord Indra got upset with Farmers, he announced there will be no rain for 12 years & you won’t be able to produce crops.

Farmers begged for clemency from Lord Indra , who then said , Rain will be possible only if Lord Shiva plays his Damru.

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But he secretly requested Lord Shiva not to agree to these Farmers & when Farmers reached Lord Shiva he repeated the same thing that he will play Damru after 12 years.

Disappointed Farmers decided to wait till 12 years.

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But one Farmer regularly was digging, treating & putting manure in the soil & sowing the seeds even with no crop emerging.

Other Farmers were making fun of that Farmer . After 3 years all Farmers asked that Farmer why are you wasting your time n energy

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Read 7 tweets
26 May 20
Flag Pattern Simplified📒

🔵Its a continuation price pattern occurs in a middle of an existing trend which looks like the shape of a flag
🔵Flags are areas of tight
consolidation in price for few days before actual BO occurs in a stock

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#StockMarket #Technicals
Flag Pattern Simplified📒

🔵Flag patterns signify trend reversals or breakouts after a period of consolidation
🔵The pattern typically consists of between five and twenty price bars. Flag patterns can be either upward (bullish flag) or downward trending (bearish flag)

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Flag Pattern Simplified📒

🔵The bottom of the flag should not exceed the midpoint of the flagpole that preceded it.
🔵Flag patterns have following components:

1️⃣An Existing trend
2️⃣The Consolidation channel
3️⃣The Volumes
4️⃣A Breakout & its Confirmation

3/3
Thanks 🙏
Read 3 tweets
23 May 20
Price Patterns Simplified📒

🔵There are 2 types of price patterns in Technical Analysis

1️⃣Continuation:
It occurs when the trend continues in its existing direction following by a pause in ST

2️⃣Reversal:
It occurs when a price pattern signals a change in trend direction

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Price Patterns Simplified📒

Continuation Patterns📈
🔵There are 3 common CP...
1️⃣Pennants—It is made using two converging trendlines
2️⃣Flags-It isdrawn with two parallel trendlines
3️⃣Wedges-It is made with two converging trendlines, where both are angled either up or down

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Price Patterns Simplified📒

Continuation Patterns📈
4️⃣Triangles
Its a pattern depicted by drawing trendlines along a converging price range

5️⃣Cup & Handle
Its is a bullish continuation pattern where an upward trend has paused & starts rising again after BO

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#StockMarket
Read 4 tweets
20 May 20
Behavioral Finance Simplified📒

🔵Its a study to observe the human behaviour from different angles when it comes to managing the money💰
🔵Its a study to observe the changes in human behaviour (emotional change) when a stock rises or fall📈📉

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#MarketPsychology
#StockMarket Image
Behavioral Finance Simplified📒

🔵Its a study to know how psychological biases can affect market outcomes
🔵There are 5 concepts of Behavioural Finance which are

1️⃣Anchoring
2️⃣Mental Accounting
3️⃣Herd Behaviour
4️⃣Emotional Gap
5️⃣Over Confidence

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#MarketPsychology Image
Behavioral Finance Simplified📒

Anchoring
🔵Anchoring is a cognitive bias  in which individuals fix a target number or value usually, the first one they get, such as an expected price
🔵Bias in it influences the investor not to sell despite of bad news in stock

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Read 8 tweets
11 May 20
Reversal Patterns Simplified📒

Bearish Reversal Patterns🐻
🔵 Some common bearish reversal patterns are
1. Bearish Engulfing
2. Evening Star
3. Three Black Crows
4. Dark Cloud Cover
5. Bearish Harami
🔵All patterns should be confirmed with next days close & other indicators

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Reversal Patterns Simplified📒

Bearish Engulfing🐻
🔵 Ir consists of a small  (green) candle followed by a large down ( red) candle that engulf the smaller candle
🔵 It generally appears near end of uptrend or in pullbacks of larger downtrend

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Reversal Patterns Simplified📒

Evening Star Pattern🐻
🔵It is a bearish candlestick pattern with 3 candles a large green candlestick, a small-bodied candle & a red candle
🔵It occurs near an end of uptrend
🔵It confirms when 3rd candle close is lower than 1st candle high

3/n
Read 3 tweets
10 May 20
Reversal Patterns Simplified📒

#Candlestick
🔵There are two types of reversal patterns in candlestick
1.Bullish 🐂
2.Bearish 🐻
🔵Bullish reversal pattern mostly occurs in downtrend or during intermediate corrections of uptrend,
Vice Versa for Bearish reversal pattern

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Reversal Patterns Simplified📒

Bullish 🐂
🔵Some common bullish reversal patterns identifed by traders on charts are
1.Bullish Engulfing
2.Three White Soldiers
3.Morning Star
4.Piercing Line
5.Inverted Hammer
🔵All patterns to be confirmed with price move & other indicators

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Reversal Patterns Simplified📒

Bullish Engulfing
🔵Its a reversal pattern in which second candle (Green) completely engulfs the real body of the first(Red) candle
🔵On the second day price opens lower than the previous day low & close above previous day high

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#Candlestick
Read 7 tweets
5 May 20
Fibonacci Simplified📒

🔵Its a concept developed by mathematician Leonardo Fibonacci in 13th Century
🔵Fibonacci sequence is a series of numbers from 1 to infinity as each number is a sum of previous 2 numbers. For example
(1,1,2,3,5,8,13,21,34,55,89,144)

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#StockMarket
Fibonacci Simplified📒

Golden Ratio (0.618% or 1.618%)
🔵Its a mathematical ratio that is derived from FB nos.
🔵In a sequence, any given number is approximately 1.618 times the preceding number, ignoring the first few nos.

Plz search more about this ratio to know more

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Fibonacci Simplified📒

🔵In financial markets fibonacci sequence numbers can be used in two ways which are Fibonacci retracement & Fibonacci extensions
🔵FR & FE helps the traders to identify support & resistance levels of a particular trend in the market

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#StockMarket
Read 5 tweets
4 May 20
Trend Line Simplified📒

🔵A trendline is a straight line that connects two or more pivot points(high/low) to know the direction of a trend
🔵It acts as a line of support or resistance in particular trend
🔵It can be drawn on a chart of any time

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#StockMarket #Technicals Image
Trend Line Simplified📒

🔵 There are 3 types if trend
Bullish, Bearish & Sideways
🔵A trendline should be drawn by connecting minimum 2 lows or highs to know the supports & resistance in the prevailing trend
🔵Trend changes If any stock breaks the trend line decisively

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Trend Line Simplified📒

🔵When we draw upper & lower trend line it forms a channel
🔵A channel helps in identifying supports & resistances of the future in a prevailing trend
🔵There are 3 types channels
Ascendiing - Bullish
Descending - Bearish
Rectangle - Sideways

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Read 4 tweets
2 May 20
Ichimoku System Simplified📒

🔵Its an indicator developed by Goichi Hosda in 1969 before practicing it for 30 yrs in trading
🔵It is one of the finest & versatile trading indicator which helps in identifying trend direction, supports/resistances & other trading signals

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Ichimoku System Simplified📒

🔵Ichimoku trading system has 5 components...
1.Tenkan-Sen (Conversion Line)
2.Kijun-Sen (Base Line)
4.Senkou Span A
3.Senkou Span B
5.Chikou Span (Lagging Line)
🔵The most important part of it the Cloud or Kumo which forms with Span A & B

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Ichimoku System Simplified 📒

🔵The trend is up when price is above the cloud, down when price is below the cloud and flat when price is moving in b/w the cloud
🔵The uptrend gets stronger when the leading Span A rises above the Span B to form a green cloud &
Vice Versa

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Read 5 tweets
30 Apr 20
Moving Averages Simplified📒

🔵Its a technical indicator used by traders to identify trading opportunities
🔵Its a Lagging indicator
🔵2 MAs which traders use more often are..
SMA(Simple moving average) & EMA(Exponential moving average)

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#StockMarket #Technicals
Moving Averages Simplified📒

SMA
🔵It is calculated by dividing the averages of closing price for certain period by no. of days in that period
🔵Its helps in assessing the bull or bear trend in the market or a stock
🔵Some commonly used SMAs are 200,100,50,20&10 days

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Moving Averages Simplified📒

EMA
🔵It places more weightage on recent data
🔵To calculate it we need to calculate smoothing weightage first
🔵For a 20-day moving average, the smoothing weightage would be
2/(20+1)= 0.0952.
🔵It reacts more rapidly in trend chanes vs SMA

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Read 5 tweets
29 Apr 20
Technical Indicators Simplified📒

🔵There are 2 types of indicators
Leading & Lagging
🔵Leading indicator precedes the price action(RSI,CCI etc)
🔵Lagging indicator trails the price action (MA,MACD etc)
🔵Traders use both the indicators before #Trading the set up

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Technical Indicators Simplified📒

Leading Indicators
🔵These indicators helps to predict the price direction of a security
🔵These indicators helps in identifying the strength of the move in advance (RSI)
🔵 CCI helps in understanding the underlying momentum of the move

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Technical Indicators Simplified📒

Lagging Indicators
🔵These indicators helps to know the actual trend in the market
🔵MACD is frequently used to know the momentum of the trend
🔵MA helps in identifying the longevity of the trend (ST, MTor LT)

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Read 3 tweets
28 Apr 20
Darvas Box Theory Simplified📒

🔵Its a trading strategy developed by Nicolas Darvas
🔵It targets the #stocks which are hitting new highs with rising volumes
🔵It works well in bullish markets
🔵Darvas Box covers lows & highs of a stock moving in a range for certain period

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Darvas Box Theory Simplified📒

🔵Search for all the #stocks which are moving in a certain range with excellent fundamentals
🔵Then cover that range bound move with box called DARVAS BOX
🔵Apply Fibbonacci extensions once any stock breaks the upper or lower range of the BOX

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Darvas Box Theory Simplified📒

💡Case Study- #Abbott
🔵Use weekly chart to capture big moves & Daily chart for small moves
🔵We need ultimate PATIENCE in trade if we use this strategy
🔵Abbott broke out the box with volumes & gave 4500 pts move

End of Thread
Thanks 🙏
Read 3 tweets
27 Apr 20
Book Value & PBR Simplified📒

🔵Book value is the value of company's net assets after reducing all the liabilities
🔵(PBR)Price to book value is a ratio between company's share price & its book value
🔵PBR is part of every fundamental analyst's checklist📝

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#StockMarket
BV & PBR Simplified📒

🔵BV is calculated as
Total assets - Total liabilities / number of outstanding shares
🔵Book value can be higher or lower than market value of the company depending its financial position
🔵Market value is the value of share price of the company

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BV & PBR Simplified 📒

🔵PBR compares company's market value to its book value
🔵PBR varies from sector to sector
(i.e - A good PBR for one industry might be poor for another)
🔵PBR below 1 considerd as value opportunity by long term investors

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#StockMarket #Fundamentals
Read 4 tweets
26 Apr 20
RSI Simplified📒

🔵Its one of the leading indicator which measures the strength of any move in price
🔵Its an oscillator which moves between two extremes (0—100)
🔵Reading above 70 indicates overbought while below 30 indicates oversold sentiments

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#StockMarket #Technicals
RSI Simplified📒

How to trade with #RSI
🔵50—70 is as zone where trades buy the #stocks by considering other factors (BO, Divergences)
🔵Below 40 is weakness zone where some traders do selling
🔵40-50 is an indecision zone where most of the traders avoid trading & wait for BO
RSI Simplified📒

Trading Divergences📈
🔵There are 2 type of divergences occurs b/w RSI&Price (Bullish & Bearish)
🔵In Bullish Divergence RSI makes HH-HL while price doesn't do it
🔵In Bearish Divergence RDI makes LH-LL while price doesn't do it

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#StockMarket #Technicals
Read 5 tweets
23 Apr 20
Dow Theory Simplified📒

🔵The market moves in a trend & discount all the things in advance
🔵Market has 3 trends
1. Primary Trend,
2. Secondary Trends
3. Minor Trends
🔵There are 3 phases in each primary trend (Bull or Bear)
🔵Trends can be identified with HH-HL or LH-LL Image
Dow Theory Simplified📒

🔵 Primary Trend - Major trend in which market is moving have 3 phases
1. Accumulation
2. Mark Up
3. Distribution
🔵Secondary Trends - These are corrections or pullbacks in primary trend
🔵Minor Trend - Market fluctuations due to sudden news or noise Image
Dow Theory Simplified📒

🔵 Accumulation Phase - Here smart investors & traders accumulate the stocks before actual move occurs
🔵Mark Up Phase - Broader market realizes the opportunity & get active in market
🔵Distribution Phase - End of trend with increase in speculation(2018) Image
Read 5 tweets
22 Mar 20
Thread on how to survive current in #stockmarketcrash 📈

👉Review the business of companies you are holding
👉Check whether your company will survive after few weeks of lockdown/slowdown in the country
👉Check post impact on the sector your company is into.

#SurviveToThrive Image
#SurviveToThrive

👉 Check the domestic/International exposure of your company
👉Companies mostly into Domestic business will make a fast Comeback than companies having international exposure
👉 Companies with good cash on books will revive faster than companies with debt Image
#SurviveToThrive

👉1st Sectors like FMCG, Chemicals & Pharma will Survive & Thrive with fastest pace after current slowdown
👉2nd Consumer discretionary will Revive & Thrive
👉3rd Service sectors like Airlines, Travel & Hotels will revive & thrive as per their business model Image
Read 6 tweets