Technical Analysis

Technical Analysis

 Study of Price Charts

 Based on the law of Demand & Supply

 Depicts what the masses think

TECHNICAL ANALYSIS

A study of Price Charts

using Historical price data
Based on Law of Demand & Supply
 Depicts Mass Psychology…

Works best on Stocks having a mass following

 How Stock Prices move
Distribution

Mass Participation

Panic selling by
Masses
Participation by a
Select Few

Accumulation
Fundamental Technical
Analysis Analysis
Finds reasons for
the stock prices to Assumes that the stock
move up or down price factors in everything

Reasons follow later

 Dow Theory
 Price Discounts Everything

Buy on Info
 What is a Trend?

Direction in which the Markets move

 Trends - In terms of Direction
H4
Higher Tops
H3

H2

L4
H1
L3

L2 Higher Bottoms
L1 Uptrend – Higher Tops, Higher Bottoms
 Trend – In terms of Direction
H1

H2

Lower Tops
H3
L1
H4
L2

L3

Lower Bottoms L4

Downtrend – Lower Bottoms, Lower Tops

 Trend – In terms of Direction

Sideways – Moving within a Short Band

 A Trend in motion continues…

…till definite signals emerge

 Terminologies

 Buy ( Long ) / Sell ( Short ) / Accumulate

 Exit
 Targets / Stop Loss / Trailing Stop Loss
 Book Profits
 Supports & Resistance
 BTST / STBT
 Intraday & Positional
 Retracement / Corrective / Bounce
 Short / Medium / Long Term
 Bullish / Bearish
 Resistance

Support: Resistance:

A support level A resistance level is

is a level on the a level on the price
price chart chart from which
from which the the stock price
stock price starts moving
starts moving down
up Support
 The following act as Excellent
Support & Resistance levels:

 Previous significant Highs & Lows

 Trend lines

 Fibonacci Retracement levels

 Continuation Patterns

Shows Continuation of a Trend

 Trend lines
 Triangles
 Wedges
 Flags & Pennants
 Rounding Bottoms / Saucers
 Reversal Patterns

Shows Reversal of a Trend

 Head & Shoulders Reversal Pattern ( Bullish /

Bearish )
 Bar Reversals ( Bullish / Bearish )
 Double (or Triple) Bottoms / Tops
 Island Reversals
Triangle Pattern
FLAG Pattern
Wedge Pattern
Head And Shoulder Pattern
Rounding Bottom Formation
Triple Top Formation
 Services Offered by Technical Team

Categorization of Clients
Client

Investor Trader
(Time Frame : 12 months and above)

Fundamental Top Picks

Initiating Coverage 5 Days to 2 Months 3 Months
Result Updates
IPO Note Techno Funda
Technical Stock Picks Futures Positional
(Short Term Cash)
Index Positional Options Positional
 Techno Funda

 A winning combination of Technical and Fundamental

Analysis on stocks.
 A Product for Short to Medium Term traders.
 Only ‘Buy’ recommendations are given in companies
which are under coverage of Fundamental Research Team,
which looks positive from Technical Analysis perspective
also.
 Recommendations are given for returns of more than 10%
within time duration of 3 months.

Techno Funda – Buy Wipro

 Technical Stock Picks
 A Prudent and Effective Product for Positional & Short
Term Traders.

 Recommendations are given with a time horizon of 5-10

sessions, 14-21 sessions and 2 months.

 Calls are given with a risk of 3.50% to 6% for a reward of

7% to 12%.

 Highly Liquid Large Cap and Mid Cap stocks are covered.

Technical Stock Picks – Buy Lupin

 Index Positional

 A Product for Short Term Traders who trades in Index Fut.

 Recommendations are given for returns of 2-4% within

time duration of 5-10 trading sessions.

 ‘Long’ & ‘Short’ trades in Nifty Fut., BankNifty Fut. and

NIFTYIT Fut.

Index Positional- Sell Nifty Sept Fut.

 Futures Positional

 A Product for Short Term traders.

 This product contains recommendations in Futures

segment in Indices and Stocks with a positional
perspective.

 A unique product wherein recommendations are purely

based on derivatives stats and are included in the
research report.

Futures Positional – Buy HUL

 Options Positional

 A Product for Short Term Traders who trades in Options

segment.

 This product consists of different strategies like Long Call,

Ratio Bull Call Spread, Long Strangle etc. depending on
market directions/volatility.

 The time period may vary from two to four weeks.

Options Positional – ICICI Bank

 Golden Rules of Trading

Trend is your Friend !!

Ride on Profits... Cut Losses
Don’t be…

too Greedy !!
Take Trading decisions by…

Yourself !!
Always be…

Flexible !!
Don’t be a Compulsive Trader !!
 Make use of…

…all the Trading Tools !!

WISHING YOU ALL THE VERY BEST AND LOTS OF SUCCESS IN THE
STOCK MARKETS !!
 THANK YOU

Published in FY 2012. © Angel Broking 2012-13

Angel Broking All rights reserved. Corporate Office: 6th Floor, Ackruti Star, Central Road, MIDC, Andheri East, Mumbai – 400 093, India
Tel.: +(91) 022 3935 7600

The information given herein or in the accompanying material is intended only to be general information relating to the organization, structure, functions, areas of business, potential and
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the company or any of its Directors, Members, employees, servants or agents.
 Disclaimer
Disclaimer -Investments in securities are subject to market risks, which include a price fluctuation risk. There is no
assurance or guarantee that the objectives of any of the schemes mentioned in this document will be achieved. Please
refer risk disclosure document for details. The investments made by the various schemes may not be suitable to all
categories of investors. The names of the schemes do not, in any manner, indicate their prospects or returns. The
performance in the equity schemes may be adversely affected by the performance of individual companies, changes in
the marketplace and industry-specific and macro-economic factors. The debt investments and other fixed income
securities may be subject to interest rate risk, liquidity risk, credit risk and re-investment risk. Liquidity in these
investments may be affected by trading volumes, settlement periods and transfer procedures. Technology stocks and
some of the investments in the niche sectors run the risk of volatility, high valuation, and obsolescence and low
liquidity. One or more of the schemes may use derivative instruments like index futures, stock futures, and options
contracts, warrants, convertible securities, swap agreements or any other derivative instruments for the purpose of
hedging and portfolio balancing, as permitted under the regulations and guidelines. The use of a derivative requires an
understanding not only of the underlying instrument but of the derivative itself. Derivatives require the maintenance of
adequate controls to monitor the transactions entered into, the ability to assess the risks that a derivative adds to the
portfolio, and the ability to forecast price or interest rate movement correctly. Schemes using derivative futures &
options products are affected by risks different from risks associated with stocks and bonds. Such products are high
leverage instruments and their use requires a high degree of skill and expertise. Small price movements in the
underlying securities may have a large impact on the value of derivative futures & options. Some of the risks relate to
mispricing or the improper valuation of derivative futures & options, and the inability to correlate the positions with
underlying assets, rates and indices. Also the derivative futures & options markets are uncertain in India. In the case of
stock-lending, risks relate to the default from counterparties with regards to the securities lent and the corporate
benefits thereof, inadequacy of the collateral and the settlement risks. The portfolio manager is not responsible or liable
for any loss resulting from the operations of the scheme. The performance of the schemes may be affected by changes
in government policies, general levels of interest rates, and risks associated with trading volumes, liquidity and
settlement systems in equity and debt markets. The scheme may invest in non-publicly offered debt securities and
unlisted equities. This may expose the scheme to liquidity risks. Reports based on technical and derivative analysis
center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to
focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.

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