Trading Strategies Using Technical Analysis

[jagankris]

Dear raunak bhai,

SBI Hikes Deposit rates again,

Fresh round of deposit rate hike Signaling that pressure on liquidity could continue for some time, on December 7,2010, the State Bank of India (SBI) initiated a steep, unexpected 100bps increase in the relevant one-two year deposit bucket. At 8.5% for a 555 day deposit, the rate offered by the bank was higher than peers. In response, other banks also raised their rates. However, the hikes by the latter came in tandem with increase in lending rates, reflecting the pricing power wielded by banks and their consciousness towards margin protection.

However, in less than a month, resounding the liquidity pressure persisting in the system (a function of slow deposit growth), SBI raised its deposit rate again in the one-two year bucket by 50bps to 9%, a notch above peers. With the leader setting the tone, we expect others to follow. SBI’s rate hike was coupled with 40bps increase in the base rate and 25bps hike in PLR, reflecting the pricing power wielded by banks. Since the beginning of FY11, the banking system has seen a cumulative rise of ~190bps in deposit rates, 120bps in PLR, and 75bps in the base rate.

Will this affect the Banking sector ?
Please let us know your view on Banking sector.

TIA.

Best Regards,
JK

 

[rrmhatre72]

Hi Raunak,

Are you observing any positive structure development in Sail now?

 

[SwingKing]

Re: Swing Trading Nifty and Bank Nifty

Dear Friend the correct code is as below,

Buy = Close > BBandTop(Close,20,0.5);
Sell =Close < BBandTop(Close,20,0.5);

must be changed to

Buy = Close > BBandTop(Close,20,0.5);
Sell =Close < BBandbot(Close,20,0.5);

_SECTION_BEGIN("Price");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) Vol " +WriteVal( V, 1.0 ) +" {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 )) ));
Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() ); 
if( ParamToggle("Tooltip shows", "All Values|Only Prices" ) )
{
 ToolTip=StrFormat("Open: %g\nHigh:  %g\nLow:   %g\nClose:  %g (%.1f%%)\nVolume: "+NumToStr( V, 1 ), O, H, L, C, SelectedValue( ROC( C, 1 )));
}
_SECTION_END();

Buy = Close > BBandTop(Close,20,0.5);
Sell =Close <  BBandbot(Close,20,0.5);

Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

shape = Buy * shapeUpArrow + Sell * shapeDownArrow;


PlotShapes( shape, IIf( Buy, colorGreen, colorRed ), 0, IIf( Buy, Low, High ) );

Ashok,

The Code which is given is correct and requires no changes.

Tc

 

[SwingKing]

Hi Raunak,

Are you observing any positive structure development in Sail now?

Rahul,

Am only tracking Tata Steel and Hindalco.

Sail may be bouncing on short term. But longer term structure is still out of place.

Tc

 

[SwingKing]

Dear raunak bhai,

SBI Hikes Deposit rates again,

Fresh round of deposit rate hike Signaling that pressure on liquidity could continue for some time, on December 7,2010, the State Bank of India (SBI) initiated a steep, unexpected 100bps increase in the relevant one-two year deposit bucket. At 8.5% for a 555 day deposit, the rate offered by the bank was higher than peers. In response, other banks also raised their rates. However, the hikes by the latter came in tandem with increase in lending rates, reflecting the pricing power wielded by banks and their consciousness towards margin protection.

However, in less than a month, resounding the liquidity pressure persisting in the system (a function of slow deposit growth), SBI raised its deposit rate again in the one-two year bucket by 50bps to 9%, a notch above peers. With the leader setting the tone, we expect others to follow. SBIs rate hike was coupled with 40bps increase in the base rate and 25bps hike in PLR, reflecting the pricing power wielded by banks. Since the beginning of FY11, the banking system has seen a cumulative rise of ~190bps in deposit rates, 120bps in PLR, and 75bps in the base rate.

Will this affect the Banking sector ?
Please let us know your view on Banking sector.

TIA.

Best Regards,
JK

Jagan,

It might be that markets are pricing in the January RBI policy action. Apart from that I don't know what is happening. Banking sector is going to grow leaps and bound in coming years. Hence, though in short term banks will remain jittery, in my opinion it takes just 1-2 sessions to change everything underneath. Personally I am not invested much in the sector, but as I said, it takes 1-2 sessions to change the structure and once that comes I will reinvest in it again. In absolute numbers, I would look for investing in the sector above 12050-12100 levels. In terms of fundamentals, such short term actions do not impact the growth prospects on long term.

On short term, the longer the Bankex takes to take out 12000 -12100, I would start getting worried about the broader market underneath. So lets wait and see.

Tc

 

[Gang123]

Hi, Friends

Short Nifty @ 6167 for a target of 6110.. SL 6180


Regards,
Gangadharan

 

[jagankris]

Dear Raunak Bhai,

So far I never gave any importance to the fundamental view and news.
Only after your words I have started giving importance to fundamental news also.
But to be honest I really don't know what each policy or news means and it's effects on the economy/Markets.

Even the other day when you posted some economic charts I couldn't understand a bit.

Request to start a separate thread focusing fundamentals.

TIA.

Best Regards,
JK

 

[jagankris]

Hi, Friends

Short Nifty @ 6167 for a target of 6110.. SL 6180


Regards,
Gangadharan

Gangaji,

Intraday ?

TIA.

Best Regards,
JK

 

[Gang123]

Gangaji,

Intraday or Positional ?

TIA.

Best Regards,
JK

I cant say it Intraday or not. But what I can say is it is purely a short term. If you earn on intraday you have to squre off it dear.

Regards,

Gangadharan

 

[JackPotter]

On short term, the longer the Bankex takes to take out 12000 -12100, I would start getting worried about the broader market underneath. So lets wait and see.

Tc

I understand that you're referring to the Banknifty, instead of the Bankex here. Is that correct?

BTW, have you read about Jesse Livermore?

P.S.: I believe that you've.